REIT-TIREMENT - REIT Investing and Personal Finance

A blog about REIT investment and personal finance

Sunday, September 13, 2020

China Retail Focused SREITs and BizTrust - BHG vs CRCT vs DRT vs Sasseur

After previous U.S. Office Focused SREITs comparison, this time let's do it for China Retail Focused SREITs/BizTrust. For mobile user, please view in landscape mode.


Name

BHG Retail REIT (BHG)

CapitaLand Retail China Trust (CRCT)

Dasin Retail Trust (DRT)

Sasseur REIT (Sasseur)

Basic & Key Statistics

Listed Date

11-Dec-2015

8-Dec-2006

20-Jan-2017

28-Mar-2018

Business Mode

REIT

REIT

BizTrust

REIT

Dividend Frequency

Semi-Annual

Semi-Annual

Semi-Annual

Quarter

Unit Price

$0.565

$1.140

$0.815

$0.750

Dividend Yield

4.74%

6.83%

6.56%

8.15%

Price / NAV

0.68

0.70

0.63

0.83

Market Cap

SGD 0.29 Billion

SGD 1.39 Billion

SGD 0.63 Billion

SGD 0.90 Billion

Related Parties Shareholding

REIT Sponsor

3.85%

34.95%

0.00%

57.32%

REIT Manager

1.49%

6.21%

2.18%

1.05%

Directors of REIT Manager

12.00%

0.06%

60.80%

58.69%

Lease Profile

Committed Occupancy

92.9%

93.4%

97.0%

93.6%

Weighted Average Lease Expiry, WALE

3.7 years

2.2 years

4 years

0.8 year

Highest Lease Expiry in 5 Years

29.8%

28.0%

23.6%

62.4%

Number of Properties

6 units

13 units

5 units

4 units

Weighted Average Land Lease Expiry

24.68 years

24 years

23.66 years

30.35 years

Debt Profile

Gearing Ratio

35.9%

33.6%

37.9%

28.1%

Interest Cover Ratio

2.6 times

4.0 times

2.3 times

5 times

Cost of Debt

3.9%

2.8%

5.5%

4.2%

Fixed Rate Debt Proportion

50.1%

82.9%

30.1%

12.9%

Unsecured Debt Proportion

0.0%

93.5%

0.0%

0.0%

Weighted Average Debt Maturity, WADE

1.7 years

2.75 years

1.95 years

2.23 years

Highest Debt Maturity in 5 Years

97.2%

22.8%

71.1%

72.6%

Diversification Profile

Top Geographical Contribution

55.6%

57.5%

100.0%

53.0%

Top Property Contribution

55.6%

24.4%

31.7%

43.9%

Top Tenant Contribution

15.8%

4.1%

10.6%

7.5%

Top 10 Tenants Contribution

24.4%

17.6%

40.9%

18.0%

Key Financial Metrics

Property Yield

4.9%

4.5%

3.4%

7.2%

Management Fees over Distribution

11.1%

17.2%

24.0%

10.0%

Distribution on Capital

1.9%

3.0%

1.4%

4.7%

Distribution Margin

15.6%

40.4%

18.0%

63.5%

Distribution from Income Support

4.8%

0.0%

29.6%

0.0%

Growth Trend (5 Years or Since IPO for REITs less than 5 years)

DPU

Downtrend

Downtrend

Downtrend

Slight Downtrend

NAV per Unit

Flat

Slight Downtrend

Downtrend

Uptrend

Interest Cover Ratio

Downtrend

Downtrend

Downtrend

Flat

Property Yield

Flat

Downtrend

Flat

Downtrend

Distribution Margin

Downtrend

Slight Uptrend

Uptrend

Flat

* Above information is extracted from SREITs Dashboard.

** Growth Trend for DPU is not adjusted for any equity fundraising.


Let's not assign any weightage and only focus on the number of green highlighted items. Below is the summary for REIT with better position by categories:

1) Basic & Key Statistics - Sasseur

2) Related Parties Shareholding - Tie

3) Lease Profile - DRT

4) Debt Profile - CRCT

5) Diversification - CRCT

6) Key Financial Metrics - Sasseur

7) Growth Trend - Sasseur

8) Overall - Sasseur, followed by CRCT


As for relative valuation:

Name

BHG Retail REIT (BHG)

CapitaLand Retail China Trust (CRCT)

Dasin Retail Trust (DRT)

Sasseur REIT (Sasseur)

52 Weeks

High

$0.710

$1.700

$0.865

$0.920

Low

$0.390

$0.920

$0.750

$0.525

Current

$0.565

$1.140

$0.815

$0.750

Average Yield

High

8.42%

7.68%

10.88%

11.74%

Low

2.91%

4.39%

3.44%

6.81%

Average

6.63%

6.59%

7.85%

8.57%

Current

4.74%

6.83%

6.56%

8.15%

Average Price/NAV

High

1.00

1.02

0.76

0.97

Low

0.72

0.80

0.53

0.75

Average

0.86

0.93

0.60

0.87

Current

0.68

0.70

0.63

0.83

CRCT is more favorable at the current price level.


Above is just a quick comparison, you could refer more detail on the individual analysis below:

BHG Retail REIT Analysis @ 30 August 2020

CapitaLand Retail China Trust Analysis @ 24 August 2020

Dasin Retail Trust Analysis @ 31 August 2020

Sasseur REIT Analysis @ 1 September 2020


For more information, you could refer:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

REIT Investing Community - Facebook Group where members share and discuss REIT topic


*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee the accuracy, completeness, and reliability. It should not be taken as financial advice or statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

4 comments:

  1. Hi Vince, lot the effort you put in. No doubt CRCT is the better one comparatively. U already knew that I feel that CRCT is greatly under-value!

    ReplyDelete
    Replies
    1. CRCT is always your favourite, very attractive at current price. Somemore biggest cap and with strong sponsor. Just notice ur link to my blog not working, able to fix?

      Delete
  2. Like your easy to read format. Good summary to compare similar reits, keep it up!

    ReplyDelete
    Replies
    1. Thanks for your comment, so you prefer REIT comparison instead of individual REIT analysis ?

      Delete