SREITs Basic Fundamental Review - 2020 Mar

Based on 4Q 2019 Result. Click to Enlarge

* Ascendas India Trust and Dasin Retail Trust are Business Trusts.
The above table is extracted from spreadsheet in SREITs Data page.
Dividend Yield:

Yield	Average	Median	Lowest	Highest
Healthcare	8.10%	8.10%	4.34%	11.86%
Retail	9.16%	8.32%	5.48%	18.13%
Office	8.18%	7.55%	4.97%	12.02%
Hospitality	17.49%	11.35%	9.4%	42.71%
Industrial	8.37%	7.66%	3.54%	13.4%
Logistics	9.52%	10.43%	5.07%	12.14%

* Based on REIT Major Sector

Financial Metrics:

Financial Metrics	Unit	Average	Median	Lowest	Highest
Price/ NAV	time	0.79	0.71	0.15	1.91
Market Cap, B	S$	2.00B	0.96B	0.17B	10.04B
Property Yield (Annualized)	%	5.89	5.84	3.39	9.30
Distribution on Management Fees	time	8.37	8.34	3.97	19.02
Distribution on Capital (Annualized)	%	4.11	4.09	1.60	5.64
Distribution Margin	%	52.35	54.98	21.17	71.32

* SREITs in Foreign Currencies converted to SGD for Market Cap Comparison

Lease Profile:

Lease Profile	Unit	Average	Median	Lowest	Highest
Portfolio Occupancy	%	95.94	96.4	86.03	100
Revenue Per Available Unit, RevPAU	S$	153.82	146.06	129.12	202.54
Income Received in SGD/Major Currencies	%	77.93	100	0	100
Highest Lease Maturity in 5 Years	%	26.15	22.10	12.40	73.6
Weighted Average Lease Expiry, WALE	year	5.70	4.10	1.10	51.79
Weighted Average Land Lease Expiry	year	66.54	72.17	23.37	99

* SREITs in Foreign Currencies converted to SGD to REVPAU Comparison

Debt Profile:

Debt Profile	Unit	Average	Median	Lowest	Highest
Interest Cover Ratio	time	5.4	4.93	2.86	11.35
Cost of Debt	%	3.18	2.91	0.86	6.46
Fixed Debt over Total Debt	%	74.59	78.17	12.70	100
Unsecured Debt over Total Debt	%	58.74	82.69	0	100
Gearing Ratio	%	35.39	35.70	26.80	41.50
Highest Debt Expiry in 5 Years	%	33.82	30.10	13.83	94.59
Weighted Average Debt Expiry, WADE	year	3.29	3.20	1.00	6.10

Diversification  Profile:

Diversification Profile	Unit	Average	Median	Lowest	Highest
Major Sector Contribution	%	84.36	96.65	35.97	100
2nd Sector Contribution	%	12.31	3.20	0	45.5
3rd Sector Contribution	%	2.89	0	0	23.72
Top Geographical Contribution	%	64.42	62.70	10.63	100
Top Property Contribution	%	28.56	24.81	5.25	79.28
Top Tenant Contribution	%	15.88	9.72	3.20	81.76
Top 10 Tenants Contribution	%	46.00	37.76	17.00	100

Distribution from Income Support:

Income Support/Distribution	Value	Remark
Ascendas REIT	2%	Estimated from Annual Report
BHG Retail REIT	14.54%
Cache Logistics Trust	3.48%
Dasin Retail Trust	38.22%
Lippo Malls Indonesia Retail Trust	3.56%
OUE Commercial REIT	8.7%
Sasseur REIT	NA	Previous FY 0%, Current FY not Disclosed
United Hampshire US REIT	13.5	Estimated from IPO Prospectus

Distribution from Disposal:

Disposal/Distribution	Value	Remark
Ascott Residence Trust	9.25%
CDL Hospitality Trusts	7.85%
ESR-REIT	12.04%
Frasers Logistics & Industrial Trust	1.88%
Keppel REIT	6.34%
Mapletree Logistics Trust	3.84%
Suntec REIT	9.9%

Summary:
General Highlight:
After recent correction due to coronavirus, SREIT sector is undervalue now, dividend yield (lagging) has increased by a lot. The highest dividend yield of 40+% goes to Eagle Hospitality Trust which is now unable to pay out its maiden dividend. Lowest P/B ratio of 0.15 goes to Eagle Hospitality Trust too.

Lease Profile Highlight:

SREITs occupancy at 4Q 2019 is not affected by coronavirus, we would need to wait for 1Q or 2Q 2020 result to see the effect. It would definitely get worse if this coronavirus outbreak continue for long period. Sabana REIT & Soilbuild REIT have less than 90% occupancy rate. Frasers Centrepoint Trust and Sasseur REIT have WALE less than 2 years.

Debt Profile Highlight:
Dasin Retail Trust & Eagle Hospitality Trust have interest cover ratio of less than 3. As interest now started to go lower, REITs that has high fixed debt seems to be at disadvantage, as oppose to what viewed as positive previously. SREITs with less than 50% fixed debt are BHG Retail REIT, Dasin Retail REIT, EC World REIT, Sabana REIT and Sasseur REIT. Median gearing ratio is at 35.7% where Cache Logistic Trust, ESR-REIT and OUE Commercial Trust are over 40%.  Median WADE is 3.2 year, with only BHG Retail REIT has less than 2 years.

Diversification Profile Highlight:
12 SREITs have top geographical contribution more than 90%, in other word, not geographical diversified enough. For top property contribution, BHG Retail REIT, Lendlease Global Commercial REIT, Mapletree North Asia Commercial Trust, SPH REIT and Suntec REIT have more than 50% contribution from their flagship property. There are 6 REITs with top tenant contribute more than 25% and 7 REITs with top 10 tenants contribute more than 80% of income.

Income Support and Distribution from Disposal Highlight:
I have recently posted about these topics in Case Studies for SREITs with Income Support and Case Studies for SREITs with Capital Distribution from Disposal. REITs with potential DPU downfall are BHG Retail REIT, Dasin Retail Trust, OUE Commercial Trust and ESR-REIT.

Actually I've plan to post this on Apr, but given SPH REIT announce result on 1st Apr, I would just make it earlier. You could refer to SREITs Result Date page for SREITs result announcement date. A lot of SREITs have adopted half yearly financial reporting, so this quarter result announcement would be lesser. I have removed Frasers Commercial Trust from spreadsheet as its expected last trading day is on 31 Mar and expected delist date is on 20 Apr.