SPH REIT: Paragon of strength and stability?

SINGAPORE (July 11): DBS has reiterated its “hold” call for SPH REIT, with a target price of 99 cents, according to a report dated July 8. This comes on the back of its performance in 3QFY16, better than expected rental reversions and its acquisition of Seletar Mall.

Describing the REIT’s 3QFY16 results as “resilient”, DBS analyst Derek Tan believes that SPH REIT's dividend yield of 5.9% reflects the strength of its assets and stability of earnings.

The REIT had announced a 3QFY16 DPU of 1.36 cents, bringing 9MFY16 DPU to 4.09 cents. The research house is confident that its full year DPU forecast can be achieved, says Tan.

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