• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

DBS Research says Metro’s possible exit from retail scene would affect SPH more

by Correspondent
08/02/2021
in Current Affairs
Reading Time: 3 mins read
10

Photo: mustsharenews.com

Last week (2 Feb), DBS Group Research issued a report saying Metro’s possible exit from retail scene would affect Singapore Press Holdings (SPH) more.

“Metro is mulling the potential closure of its two existing outlets in Singapore, given the ever-changing retail scene and waning prospects for department stores,” DBS said.

“We understand that there are several years left on the lease at Causeway Point and Paragon, where the department store is an anchor tenant and the group may or may not extend those leases.”

Metro is currently among one of the top 10 tenants by gross rental income (GRI) for SPH REIT at Paragon and Frasers Centrepoint Trust (FCT) at Causeway Point. But at Causeway Point, Metro only incurs less than 1.5% of GRI.

DBS opined that exposure appears to be material for Paragon Mall which is a key asset for SPH REIT, if Metro leaves. “Metro Department store has been at the (Paragon) mall for many years and in our view, occupies a ‘cold corner’ within the mall where there is less traffic. We believe that having an anchor tenant to continue operating there is necessary to ‘pull’ traffic,” DBS said.

“While we understand that Metro is an anchor at Causeway Point, we see income risk being further minimised with the contribution from the PGIM portfolio. Given that Metro occupies a relatively desirable part of Causeway Point (levels 1 to 3) with good frontage, we believe that if Metro does exit the mall, a new anchor can be easily found.”

The retail scene has been struggling for years and with COVID-19, it makes things worse.

SPH CEO receives more than $1.3m salary while company loses money

Meanwhile, SPH announced that it posted a net loss of S$83.7 million for the financial year of 2020, which ended on 31 August last year (‘SPH CEO says company’s net loss due to COVID-19 while share price dives to nearly $1‘).

The net loss was SPH’s first ever. Its revenue from media advertising declined by a staggering 31.4 per cent. Revenue for the media business also shrank by 22.8 per cent.

Segments significantly hit even include its property business. SPH’s malls and purpose-built student accommodation (PBSA) assets were hit by non-cash fair value losses of S$232 million. The valuation of its retail malls fell by S$196.5 million while that of its PBSA assets fell by S$31.9 million respectively.

Without the government grants of S$68.5 million through the Jobs Support Scheme, SPH’s net loss would have been even higher. SPH CEO Ng Yat Chung has attributed his company’s losses to COVID-19.

“All our major business segments were severely disrupted by Covid-19. Our media business is badly affected by the collapse in advertising,” he said.

Despite losing money for the first time in the history of SPH, Ng continued to be awarded with bonuses and shares. In its latest annual report, Ng was found to have received a total cash and benefits of $1,350,000 in the last FY:

He was also awarded with SPH shares:

While Ng may be happy to have received bonuses and shares despite SPH is losing money, those SPH staff retrenched by him last year may have felt otherwise.

 

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Singapore warns slower economic growth in 2023
Labour

Less than 1 in 10 jobs created in first three quarters of 2022 went to Singaporeans?

28/01/2023
Peru Congress rejects president’s plan for early elections
AFP

Peru Congress rejects president’s plan for early elections

28/01/2023
UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin
Malaysia

UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

28/01/2023
WHO panel in talks on COVID emergency status
AFP

WHO panel in talks on COVID emergency status

27/01/2023
AFP

Two years after Myanmar coup, UN says situation ‘catastrophic’

27/01/2023
Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health
Community

Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

27/01/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
10 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Latest posts

Singapore warns slower economic growth in 2023

Less than 1 in 10 jobs created in first three quarters of 2022 went to Singaporeans?

28/01/2023
Peru Congress rejects president’s plan for early elections

Peru Congress rejects president’s plan for early elections

28/01/2023
UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

UMNO purging members as it sacks former health minister Khairy and suspended ex-defence minister Hishammuddin

28/01/2023
WHO panel in talks on COVID emergency status

WHO panel in talks on COVID emergency status

27/01/2023

Two years after Myanmar coup, UN says situation ‘catastrophic’

27/01/2023
Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

Grab driver supposedly earned $5,227.82 in a week prior CNY, netizens voice worries over his health

27/01/2023
Philippines to appeal ICC resumption of drug war probe

ICC grants new inquiry into Manila’s deadly ‘war on drugs’

27/01/2023
Minister refutes claims of Malaysia consulting Singapore on housing policy due to its inefficient civil service

Minister refutes claims of Malaysia consulting Singapore on housing policy due to its inefficient civil service

27/01/2023

Trending posts

Two Indian nationals paid about S$330 and S$730 respectively for forged certificates submitted in their S-Pass application

MOM found issuing EPs meant for foreign PMETs to PRC waitress and general worker

by Correspondent
26/01/2023
36

...

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

Earning only S$400 a month, delivery-rider turned hawker threw in the towel after two years of running a rojak stall

by Yee Loon
26/01/2023
24

...

Ho Ching breaks silence over Temasek’s write down of its US$275 million investment in FTX, says it “can afford to be contrarian”

US regulator questions VCs’ due diligence work prior to investing in FTX; Ho Ching says Temasek can afford to be contrarian

by The Online Citizen
24/01/2023
28

...

Indian rupee falls 60% since signing of CECA while Singapore becomes top investor in India

by Correspondent
25/01/2023
55

...

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

Temasek and GIC reportedly in talks with Adani Group accused of “brazen” market manipulation and accounting fraud

by The Online Citizen
26/01/2023
46

...

DBS Research says Metro’s possible exit from retail scene would affect SPH more

by Correspondent
08/02/2021
10

...

February 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
« Jan   Mar »
  • About Us
  • Subscribe
  • Letter submission
  • Contact Us

© 2006 - 2021 The Online Citizen

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2006 - 2021 The Online Citizen

wpDiscuz