Similar to the previous post of Singapore Retail Focused SREITs/BizTrust, this time let's compare office focused SREITs. As there are some numbers of SREITs having properties in multiple sectors, so the criteria for this comparison are: 1) major sector to be Office, 2) major geographical location to be in Singapore and 3) Exclude business park/industrial REITs. CCT is excluded due to merger soon. For mobile user, please view in landscape mode.
|
Name |
Keppel REIT (KREIT) |
Mapletree Commercial Trust (MCT) |
OUE Commercial Trust (OUECT) |
Suntec REIT (Suntec) |
|
|
Basic & Key Statistics |
|||||
|
Listed Date |
28-Apr-2006 |
27-Apr-2011 |
27-Jan-2014 |
9-Dec-2004 |
|
|
Dividend Frequency |
Semi-Annual |
Semi-Annual |
Semi-Annual |
Quarter |
|
|
Unit Price |
$1.110 |
$2.000 |
$0.370 |
$1.530 |
|
|
Dividend Yield |
5.05% |
3.79% |
7.11% |
5.23% |
|
|
Price / NAV |
0.83 |
1.14 |
0.61 |
0.73 |
|
|
Market Cap |
SGD 3.76 Billion |
SGD 6.62 Billion |
SGD 2 Billion |
SGD 4.31 Billion |
|
|
Related Parties Shareholding |
|||||
|
REIT Sponsor |
43.54% |
30.00% |
47.30% |
0.00% |
|
|
REIT Manager |
0.89% |
2.81% |
3.48% |
0.54% |
|
|
Directors of REIT Manager |
0.05% |
0.25% |
0.07% |
7.56% |
|
|
Lease Profile |
|||||
|
Committed Occupancy |
98.6% |
98.2% |
91.6% |
98.2% |
|
|
Income in SGD/Major Currencies |
93.5% |
100.0% |
89.7% |
100.0% |
|
|
Weighted Average Lease Expiry, WALE |
4.6 years |
2.6 years |
3.5 years |
2.95 years |
|
|
Highest Lease Expiry in 5 Years |
22.4% |
25.8% |
33.8% |
25.7% |
|
|
Number of Properties |
9 units |
5 units |
7 units |
10 units |
|
|
Weighted Average Land Lease Expiry |
88.14 years |
76.66 years |
40.54 years |
73.32 years |
|
|
Debt Profile |
|||||
|
Gearing Ratio |
36.3% |
33.7% |
40.1% |
41.3% |
|
|
Interest Cover Ratio |
3.5 times |
4.1 times |
2.8 times |
2.7 times |
|
|
Cost of Debt |
2.5% |
2.6% |
3.1% |
2.6% |
|
|
Fixed Rate Debt Proportion |
79.0% |
73.5% |
80.7% |
68.0% |
|
|
Unsecured Debt Proportion |
71.6% |
100.0% |
41.6% |
81.2% |
|
|
Weighted Average Debt Maturity, WADE |
3.6 years |
3.9 years |
1.8 year |
3.35 years |
|
|
Highest Debt Maturity in 5 Years |
38.0% |
15.0% |
29.5% |
28.4% |
|
|
Diversification Profile |
|||||
|
Top Sector Contribution |
97.3% |
62.2% |
61.4% |
73.0% |
|
|
Top Geographical Contribution |
72.5% |
100.0% |
89.7% |
82.9% |
|
|
Top Property Contribution |
39.5% |
39.9% |
25.2% |
56.9% |
|
|
Top Tenant Contribution |
6.2% |
8.5% |
4.9% |
3.5% |
|
|
Top 10 Tenants Contribution |
34.7% |
27.1% |
27.0% |
20.3% |
|
|
No. of Countries with Properties/Investments |
3 countries |
1 country |
2 countries |
2 countries |
|
|
Key Financial Metrics |
|||||
|
Property Yield |
3.4% |
4.3% |
3.4% |
2.9% |
|
|
Management Fees over Distribution |
24.9% |
15.5% |
15.3% |
22.1% |
|
|
Distribution on Capital |
2.7% |
2.9% |
2.1% |
2.3% |
|
|
Distribution Margin |
65.6% |
47.5% |
37.2% |
51.1% |
|
|
Distribution from Asset Disposal |
8.5% |
0.0% |
0.0% |
5.8% |
|
|
Distribution from Income Support |
0.0% |
0.0% |
13.5% |
0.8% |
|
|
Growth Trend for Past 5 Years |
|||||
|
DPU |
Downtrend |
Flat |
Downtrend |
Downtrend |
|
|
NAV per Unit |
Slight Downtrend |
Uptrend |
Downtrend |
Flat |
|
|
Interest Cover Ratio |
Flat |
Downtrend |
Downtrend |
Downtrend |
|
|
Property Yield |
Downtrend |
Downtrend |
Downtrend |
Downtrend |
|
|
Distribution Margin |
Slight Uptrend |
Downtrend |
Downtrend |
Downtrend |
|
* Above information is extracted from SREITs Dashboard.
** Growth Trend for DPU is not adjusted for any equity fundraising.
*** Distribution retention would affect financial metrics and growth trends.
Without assigning weightage, just consider favorable points will get:
1) Basic & Key Statistics - OUECT
2) Related Parties Shareholding - OUECT
3) Lease Profile - KREIT
4) Debt Profile - MCT
5) Diversification - KREIT, OUECT & Suntec
6) Key Financial Metrics - MCT
7) Growth Trend - KREIT & MCT
8) Overall - MCT, followed by KREIT
Pure office like KREIT is less affected by COVID, but those hybrid REITs with retail or hospitality portion are affected. Distribution retention will also affect REIT financial metrics and growth trends.
For relative valuation:
|
Name |
Keppel REIT (KREIT) |
Mapletree Commercial Trust (MCT) |
OUE Commercial Trust (OUECT) |
Suntec REIT (Suntec) |
|
52 Weeks |
||||
|
High |
$1.290 |
$2.480 |
$0.575 |
$1.940 |
|
Low |
$0.790 |
$1.460 |
$0.280 |
$1.040 |
|
Current |
$1.110 |
$2.000 |
$0.370 |
$1.530 |
|
Average Yield |
||||
|
High |
7.19% |
6.34% |
9.41% |
6.95% |
|
Low |
4.49% |
1.63% |
3.75% |
4.13% |
|
Average |
5.30% |
5.34% |
7.13% |
5.44% |
|
Current |
5.05% |
3.79% |
7.11% |
5.23% |
|
Average Price/NAV |
||||
|
High |
0.91 |
1.33 |
0.90 |
0.96 |
|
Low |
0.65 |
1.05 |
0.62 |
0.67 |
|
Average |
0.80 |
1.13 |
0.70 |
0.84 |
|
Current |
0.83 |
1.14 |
0.61 |
0.73 |
OUECT price is more favorable in terms of relative valuation. Note that13.5% of OUECT past 4 quarters distribution is from income support.
Above is just a quick comparison, you could refer more detail on the individual analysis below:
- Keppel REIT Analysis @ 27 July 2020
- Mapletree Commercial Trust Analysis @ 5 August 2020
- OUE Commercial Trust Analysis @ 6 August 2020
- Suntec REIT Analysis @ 16 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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