Oops, Keppel Reit and SPH disappoint …

What a letdown 😦

Both Keppel Reit and SPH disappoint in their dividend announcements.

Keppel Reit just declared DPU of 1.36 cents for this quarter. This is lower than the DPU last quarter (1.42 cents) and also the same quarter a year ago (1.40 cents).

Furthermore, I find it interesting that Keppel Reit spent ~ $6 Mln cash to purchase back 5.3 million issued units and then cancel them all in this quarter. As this company is a Reit, I cannot understand their rationale for doing so. I am thinking that it might be better for them to distribute that amount of cash to unitholders than to repurchase back their shares. I feel most of the Keppel Reit unitholders would have preferred the cash income. Anyway, it is water under the bridge now. If I have time, I would go back to read the resolution which they submitted for shareholders’ approval.

If you are interested, this is a good article that discusses about possible rationale for share buyback by Reits

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Photo by Pixabay on Pexels.com

SPH declared 7 cents as the final dividend, made up by 3 cents normal dividend and 4 cents special dividend. This is 2 cents lower than last year. They cut the special dividend by 2 cents. Although this is not unexpected given that they are on a shopping spree lately and need cash, I can’t help still feel disappointed that they cannot maintain the dividends. It’s a rather major income for me.

But having said that, dividend yield of these companies are still decent.

  • Keppel Reit – 4.7%

  • SPH – 4.9%

I hope their dividend will bounce back soon. Fingers crossed.

Regards,

Warriortan

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4 thoughts on “Oops, Keppel Reit and SPH disappoint …

  1. Hi Warriortan ,
    Yes , they have the highest fees / income as compared to others , you may just check the ratio for few reits to get the answer ,of course , as shareholder for Keppel Corp , I am really happy for that but not for K-reit . That’s the reason why I dump it years ago although they have good / quality asset …a few % point will give you huge impact in long run..just my two cents.. and the issue of high management fees been highlighted many years and every years as along as I have attended their AGMs.
    Cheers !! Happy investing 😀

    Liked by 1 person

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