REIT-TIREMENT - REIT Investing & Personal Finance

A blog about REIT investment & personal finance

Monday, September 14, 2020

SG Hospitality Trusts - ARAHT vs ART vs CDLHT vs EHT vs FEHT vs FHT

After previous comparison for U.S. office focused and China Retail focused SREITs/Biztrust, this time, let us try to compare Hospitality stapled group. For mobile user, please view in landscape mode.


Name

ARA US Hospitality Trust (ARAHT)

Ascott Residence Trust (ART)

CDL Hospitality Trusts (CDLHT)

Eagle Hospitality Trust (EHT)

Far East Hospitality Trust (FEHT)

Frasers Hospitality Trust (FHT)

Basic & Key Statistics

Listed Date

9-May-2019

31-Mar-2006

19-Jul-2006

24-May-2019

27-Aug-2012

14-Jul-2014

Unit Price

USD 0.340

$0.915

$1.060

USD 0.137

$0.550

$0.445

Dividend Yield

8.38%

5.72%

6.01%

0.00%

5.49%

4.48%

Price / NAV

0.44

0.74

0.72

0.17

0.64

0.63

Market Cap

USD 0.18 Billion

SGD 2.84 Billion

SGD 1.29 Billion

USD 0.12 Billion

SGD 1.08 Billion

SGD 0.86 Billion

Related Parties Shareholding

REIT Sponsor

9.47%

33.70%

37.72%

0.00%

58.87%

25.02%

REIT Manager

0.07%

6.73%

7.09%

0.00%

4.81%

1.03%

Directors of REIT Manager

0.14%

0.03%

0.01%

1.18%

0.18%

36.75%

Lease Profile

Revenue per Available Unit, REVPAU

Not standardized in REVPAU presentation

Income in SGD/Major Currencies

100.0%

75.6%

100.0%

100.0%

100.0%

96.0%

Weighted Average Lease Expiry, WALE

4.5 years

7.5 years

5.15 years

19 years

10.72 years

13.55 years

Highest Lease Expiry in 5 Years

100.0%

18.2%

17.2%

0.0%

9.3%

19.6%

Number of Properties

41 units

88 units

19 units

18 units

13 units

15 units

Weighted Average Land Lease Expiry

95.6 years

77.42 years

76.7 years

92.94 years

62.96 years

81.85 years

Debt Profile

Gearing Ratio

42.5%

36.1%

37.1%

37.6%

39.2%

35.9%

Interest Cover Ratio

1.5 time

3.6 times

3.4 times

.2 time

2.7 times

3.2 times

Cost of Debt

3.5%

1.8%

1.9%

5.8%

2.5%

2.3%

Fixed Rate Debt Proportion

83.0%

80.0%

61.6%

93.0%

60.3%

71.9%

Unsecured Debt Proportion

26.8%

70.3%

90.2%

17.3%

100.0%

96.3%

Weighted Average Debt Maturity, WADE

3.6 years

3.1 years

2.4 years

3.2 years

2.8 years

3.88 years

Highest Debt Maturity in 5 Years

71.1%

31.0%

31.2%

38.7%

22.8%

30.0%

Diversification Profile

Top Sector Contribution

100.0%

100.0%

94.0%

100.0%

79.7%

99.6%

Top Geographical Contribution

18.9%

20.9%

49.2%

47.6%

100.0%

20.9%

Top Property Contribution

4.5%

8.1%

11.4%

15.4%

18.3%

20.9%

Top Tenant Contribution

100.0%

11.5%

17.7%

100.0%

18.3%

16.8%

Top 10 Tenants Contribution

100.0%

28.0%

94.0%

100.0%

76.5%

92.3%

Number of Countries with Properties

1 country

14 countries

8 countries

1 country

1 country

7 countries

Key Financial Metrics

Property Yield

2.9%

3.8%

4.1%

4.8%

3.5%

4.3%

Management Fees over Distribution

10.5%

20.6%

15.8%

N/A

18.6%

29.5%

Distribution on Capital

2.9%

2.4%

3.1%

N/A

2.5%

2.2%

Distribution Margin

12.9%

21.3%

46.4%

N/A

57.0%

28.0%

Distribution from Asset Disposal

0.0%

18.2%

7.0%

N/A

0.0%

0.0%

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

DPU

Downtrend

Downtrend

Downtrend

N/A

Downtrend

Downtrend

NAV per Unit

Downtrend

Downtrend

Slight Downtrend

Downtrend

Downtrend

Downtrend

Interest Cover Ratio

Downtrend

Uptrend

Downtrend

Downtrend

Downtrend

Downtrend

Property Yield

Downtrend

Downtrend

Downtrend

Downtrend

Downtrend

Downtrend

Distribution Margin

Downtrend

Downtrend

Downtrend

N/A

Downtrend

Downtrend

* Above information is extracted from SREITs Dashboard.

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

*** EHT is suspended and never made any distribution before. Thus N/A for distribution related items.

****OUE Commercial Trust is excluded as hospitality is not its major sector.


Without assigning weightage, just consider favorable points will get:

1) Basic & Key Statistics - ARAHT, ART & EHT

2) Related Parties Shareholding - CDLHT

3) Lease Profile - EHT 

4) Debt Profile - ART, FEHT & FHT

5) Diversification - ART

6) Key Financial Metrics - ARAHT & FEHT

7) Growth Trend - ART & CDLHT

8) Overall - ART, followed by ARAHT

Due to COVID, all hospitality trusts have been affected and most growth trend items are at a downtrend.


For relative valuation:

Name

ARA US Hospitality Trust (ARAHT)

Ascott Residence Trust (ART)

CDL Hospitality Trusts (CDLHT)

Eagle Hospitality Trust (EHT)

Far East Hospitality Trust (FEHT)

Frasers Hospitality Trust (FHT)

52 Weeks

High

USD 0.895

$1.380

$1.670

USD 0.685

$0.785

$0.740

Low

USD 0.280

$0.670

$0.640

USD 0.136

$0.350

$0.315

Current

USD 0.340

$0.915

$1.060

USD 0.137

$0.550

$0.445

Average Yield

High

10.71%

8.27%

9.71%

N/A

7.54%

9.19%

Low

0.00%

2.01%

2.57%

N/A

3.68%

0.98%

Average

5.96%

6.28%

6.38%

N/A

6.17%

6.74%

Current

8.38%

5.72%

6.01%

N/A

5.49%

4.48%

Average Price/NAV

High

1.00

1.08

1.15

0.79

0.83

0.99

Low

0.52

0.74

0.66

0.17

0.57

0.67

Average

0.88

0.91

0.96

0.57

0.72

0.92

Current

0.44

0.74

0.72

0.17

0.64

0.63

ARAHT price is more favorable in terms of relative valuation, EHT is excluded in consideration as it is suspended.


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

ARA US Hospitality Trust Analysis @ 26 August 2020

Ascott Residence Trust Analysis @ 22 August 2020

CDL Hospitality Trusts Analysis @ 23 August 2020

Far East Hospitality Trust Analysis @ 25 August 2020

Frasers Hospitality Trust Analysis @ 27 August 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.

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