The loss is a result of recognising non-cash fair value losses of $232.0 million or 3.5% on their investment properties that include retail and rental assets Purpose-Built Student Accommodation (PBSA). These include property valuation (retail malls dropped by $196.5m and PBSA assets by $31.9m)
These fair value losses were partially mitigated by S$68.5 million received from government schemes, including the jobs support scheme.
However, the group remains operationally profitable at $110.2 million. Although this is 41.0% lower year-on-year, since the Covid-19 circuit breaker has significantly affected the company’s performance in the second half of FY20.
Operating Revenue declined by 9.8% (from $93.6 million to $865.7 million) on the back of a 31.4% decline ($122.5 million) in Media advertisement revenue.
SPH also clocked an increase in cost by 6.8% ($53.7 million higher at $844.4 million) due to:
- increased operational costs of their REIT and PBSA portfolio
- property tax rebates passed on tenants and
- retrenchment costs.
Despite the above, the Directors of SPH have proposed a Final Dividend of 1 cent per share in respect of the financial year ended 31 August 2020, to be paid on 18 December 2020 (subject to shareholders’ approval).
SPH’s total dividend payout for FY20 will be 2.5 cents, an increase from FY19. (There was an Interim Dividend of 1.5 cents, earlier this year.)
Singapore Press Holdings (SPH) (SGX:T39) dropped from $1.05 to $1.01 since opening today.
- SPH’s Media business recorded a drop in Revenue by 22.8% ($131.7m)
- Although SPH’s Property business recorded an increase in Revenue by 10.5% ($30.7m) with the acquisition of Westfield Marion and the Student Castle portfolio, these were not able to cover the fair valuation loss on investment properties of $228.6 million.
- The ‘Others’ segment recorded an increase in Revenue by 8.7% ($7.5m), due to sales of PPE in their Aged Care business.