Three Non-Blue-Chip SGX Dividend Payers Rewarding Shareholders This Week

Trading Random
09/28

Singapore's blue chips usually attract most of the attention when it comes to dividend payouts.

This week, though, three lesser-known companies listed on the SGX are returning cash to shareholders, and each of them has raised its payout.

$United Hampshire US REIT(ODBU.SI))$ and Boustead Singapore are set to distribute on 28 September 2026, with HRnetGroup following closely on 30 September.

Can each of these businesses keep its payout at these levels?

What is behind UHREIT's higher distribution?

$United Hampshire US REIT(ODBU.SI))$ owns a portfolio of 21 grocery-anchored and necessity-based retail properties plus two self-storage facilities across the United States.

For 1H2026, gross revenue grew 5.8% year on year (YoY) to US$37.8 million, while net property income (NPI) rose 6.4% to US$25.5 million.

This operational strength allowed the REIT to declare a distribution per unit (DPU) of US$0.0216, a 3.4% YoY increase.

Notably, DPU growth slightly trailed the 5.8% rise in total distributable income (US$13.7 million).

The difference stems from a larger unit base. Total units in issue grew to 608.2 million as of 30 June 2026, up from 596.9 million a year earlier.

Strong operational performance underpins these results. Committed occupancy across the grocery and necessity retail assets reached 97.6%, while self-storage occupancy improved by 430 basis points to 93.5%. The manager secured over 260,000 square feet of new and renewal leases during the half, retaining 90% of tenants with expiring leases. Built-in rental escalations and recent property additions provided further support, including the acquisition of Wallingford Fair in Connecticut for US$21.4 million in January 2026, a deal struck at an 8.2% discount to its independent valuation.

Can Boustead Singapore sustain its record payout?

Boustead Singapore, whose corporate history dates back to 1828, operates across real estate, geospatial technology, energy engineering, and healthcare.

For FY2026 (ended 31 March 2026), group revenue increased 18% YoY to S$624.4 million, while net profit climbed 145% to S$232.6 million.

That impressive bottom-line figure deserves a closer look: a S$140.8 million gain from selling assets to UI Boustead REIT (SGX: UIBU), which listed on 12 March 2026, drove the profit increase.

Excluding that one-off gain, net profit would have been 35% lower year on year, partly reflecting a compression in gross margin to 35% from 44%.

Free cash flow turned negative at S$84 million from a positive S$69.7 million a year ago, as projects running ahead of billing tied up S$140.7 million in working capital.

Nevertheless, balance sheet strength remains a key feature, with S$348 million in cash against S$53.4 million in borrowings, yielding a healthy net cash position of S$294.6 million.

The board proposed a final dividend of S$0.04 per share along with a special dividend of S$0.045 per share.

Combined with the S$0.015 interim dividend, total distributions for the year reached S$0.10 per share, up from S$0.075 a year ago.

Because the special dividend stems directly from a non-recurring transaction, stripping it out leaves an ordinary payout of S$0.055 per share. Looking ahead, management expects satisfactory results for FY2027.

The engineering order backlog stands at approximately S$840 million.

The group has secured S$461 million in new contracts since FY2027 began, including a record public sector project exceeding S$400 million.

Is HRnet's dividend increase backed by operations?

HRnetGroup provides recruitment and flexible staffing solutions across 19 Asian cities.

For 1H2026, revenue stood at S$292.2 million, down 1.1% YoY but flat in constant-currency terms, indicating that foreign exchange movements and regional market mix were the primary factors behind the top-line dip.

Gross profit rose 1.5% YoY to S$62.1 million, bolstered by a 3.7% gain in flexible staffing.

Operating profit grew 9.4% to S$20.1 million, supported by a 1.9% reduction in operating expenses and gross margin expansion to 21.3%.

Below the operating line, other income dropped 65.5% YoY to S$5.4 million on lower subsidies and a fair-value loss on investments.

Free cash flow came in at S$17.4 million, compared with S$26.5 million a year ago.

The balance sheet remains debt-free, backed by S$332.1 million in cash, treasury bills, and gold as of 30 June 2026.

Management declared an interim dividend of S$0.022 per share, a 10% YoY increase. Despite broader industry headwinds that have led listed peers into restructuring, HRnet's diversified staffing mix allows it to adapt across sectors, while digital initiatives like Octomate, YesPay!, and Doudou are emerging as supplementary recurring revenue channels.

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