I am not going to do a deep review of SPH’s 2nd quarter 2011 earnings. Net profit is down by a lot and they are giving out 7 cents of dividends.
We also see that the Clementi Mall is starting to contribute.
However what I find most intriguing are
- In half a year, staff cost increased 19 mil, materials increased 10 mil, finance cost increased 10 mil, other expenses increased 18 mil. In total that brings almost 58 mil.
- In the absence of Sky Eleven’s contribution, contribution from recurring property only reached 76 mil.
- Half year profit is only 173 mil. If you double that, full year profit will be 340 mil. Even adding Clementi Mall’s contribution it will be at most 380 mil.
- This is drastically below the 400 mil needed to pay out 25-26 cents dividend (6% yield)
I find that there is a possibility that payout might decrease.
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