SPH sees improvement across business segments

SINGAPORE (THE BUSINESS TIMES) - Singapore Press Holdings (SPH) on Tuesday (Jan 11) said that its overall business improved in the first quarter to November following the gradual recovery of the economy.

Still, it said in a business update that it would continue to monitor the impact of the evolving Omicron variant on travel, government-imposed restrictions and consumer sentiment.

On the group's purpose-built student accommodation (PBSA) front, SPH said it has achieved 98.7 per cent of its target revenue for the current academic year (AY) 21/22, and could exceed its target, given that there are still unoccupied rooms being marketed.

Sales of AY21/22 have exceeded that of AY20/21, said SPH.

For the upcoming AY22/23, SPH has secured 32.7 per cent of its target revenue. Repeat booking rates have doubled over those of AY21/22, following intensive marketing campaigns targeted at current students.

Revenue was also boosted by a "dynamic pricing framework", which raises room prices in line with student demand, SPH added.

Meanwhile, asset-enhancement initiatives are under way for some of the group's PBSA's assets. These include the refurbishment of the PBSA named Snow Island, located in Huddersfield (between Leeds and Manchester in England), which is slated to reopen for AY23/24. The development of two PBSA forward-funding development projects in Edinburgh, Scotland, is also ongoing and these will be scheduled to open for AY22/23.

The group's aged-care business in Singapore and Japan clocked a stable performance. Overall bed occupancy rate at Orange Valley assets stood at 87 per cent as at December 2021, higher than the 84 per cent as at the end of FY2021.

The group also managed to increase the proportion of private residences from 21 per cent to 26 per cent through the introduction of promotional rates. Still, the segment was not spared the impact of higher operating costs for accommodation for nursing staff, enhanced infection control measures and staff quarantine.

The underlying portfolio occupancy of its aged-care assets in Japan stood at over 90 per cent, with the lessees of all six assets paying rent on time.

The group's digital businesses also fared well. Used-car listings on sgCarMart achieved higher pricing and volume as the business landscape improved. Its job portal FastJobs also grew from the positive hiring momentum, and restaurant booking platform Chope raised US$15 million from Alipay to accelerate digitalisation of its food and beverage business in the region.

Meanwhile, the transfer of network assets by M1 Limited to M1 Network in a bid to free up capital and invest in 5G capabilities was completed.

In SPH's retail and commercial segment, The Seletar Mall is operating at full tenant occupancy.

The Woodleigh Residences, jointly developed by SPH and Japanese developer Kajima Development, built up good sales momentum - about 84 per cent of total units had been sold as at Jan 6. The average price went up from $1,970 per square foot (psf) in September to $1,997 psf in December last year.

Meanwhile, SPH Reit recorded an occupancy rate of 98.8 per cent as at end-November, its manager disclosed in a quarterly update last Friday (Jan 7). This was an improvement from its 97.9 per cent occupancy rate the year before.

Sales at Paragon and The Clementi Mall were 97 per cent that of the year-ago period. Occupancy in the Singapore portfolio increased to 99.8 per cent, from 98.9 per cent in the fourth quarter of FY2021.

In Australia, tenant sales at Westfield Marion Shopping Centre in Adelaide rose 6 per cent year on year despite the pandemic. Figtree Grove Shopping Centre in New South Wales was in lockdown for 3½ months until Oct 10, but sales had recovered to pre-Covid-19 levels in November.

Shares of SPH ended Tuesday flat at $2.34; units of SPH Reit ended at 97.5 cents, up a cent or 1 per cent.