REIT-TIREMENT - REITs Investing & Personal Finance

A blog about REITs investment & personal finance

Wednesday, September 16, 2020

Singapore Retail Focused SREITs - CMT vs FCT vs LREIT vs SPH vs SGREIT

Previously I posted about China Retail Focused SREITs and BizTrust, this time let's compare Singapore Retail SREITs before the major events of CMT merger and FCT acquisition. As there are some numbers of SREITs having both retail and office properties, so have to set some criteria for this comparison: 1) major sector to be Retail and 2) major geographical location to be in Singapore. Therefore MCT, MNACT and Suntec are not included this round. For mobile user, please view in landscape mode.

Name

CapitaLand Mall Trust (CMT)

Frasers Centrepoint Trust (FCT)

Lendlease Global Commercial REIT (LREIT)

SPH REIT (SPH)

Starhill Global REIT (SGREIT)

Basic & Key Statistics

Listed Date

17-Jul-2002

5-Jul-2006

2-Oct-2019

24-Jul-2013

20-Sep-2005

Dividend Frequency

Quarter

Semi-Annual

Semi-Annual

Quarter

Semi-Annual

Unit Price

$2.010

$2.640

$0.665

$0.88

$0.450

Dividend Yield

4.54%

3.83%

6.12%

4.14%

6.58%

Price / NAV

1.00

1.19

0.79

0.93

0.56

Market Cap

SGD 7.42 Billion

SGD 2.95 Billion

SGD 0.78 Billion

SGD 2.43 Billion

SGD 0.99 Billion

Related Parties Shareholding

REIT Sponsor

28.47%

36.45%

24.97%

65.69%

36.92%

REIT Manager

1.33%

4.25%

0.73%

2.53%

1.04%

Directors of REIT Manager

0.02%

0.07%

0.47%

0.05%

0.01%

Lease Profile

Committed Occupancy

97.7%

94.6%

99.5%

98.8%

96.2%

Income in SGD/Major Currencies

98.6%

98.3%

100.0%

100.0%

89.0%

Weighted Average Lease Expiry, WALE

2 years

1.61 years

4.9 years

2.6 years

5.6 years

Highest Lease Expiry in 5 Years

33.3%

32.3%

23.0%

31.0%

53.4%

Number of Properties

15 units

7 units

2 units

5 units

10 units

Weighted Average Land Lease Expiry

70.45 years

70.74 years

89.19 years

90.59 years

63.42 years

Debt Profile

Gearing Ratio

34.4%

35.0%

35.1%

29.3%

39.7%

Interest Cover Ratio

4.3 times

4.8 times

4.6 times

N/A

2.9 times

Cost of Debt

3.1%

2.5%

0.9%

2.8%

3.2%

Fixed Rate Debt Proportion

51.5%

50.0%

100.0%

63.5%

87.4%

Unsecured Debt Proportion

100.0%

76.3%

100.0%

0.0%

75.6%

Weighted Average Debt Maturity, WADE

4.5 years

2.3 years

3.1 years

2 years

2.7 years

Highest Debt Maturity in 5 Years

18.9%

34.2%

84.3%

26.0%

32.0%

Diversification Profile

Top Sector Contribution

93.2%

99.2%

64.0%

81.0%

86.2%

Top Geographical Contribution

98.6%

98.3%

64.0%

87.8%

63.0%

Top Property Contribution

10.6%

36.7%

64.0%

69.1%

34.1%

Top Tenant Contribution

3.2%

3.2%

36.0%

3.2%

22.3%

Top 10 Tenants Contribution

22.1%

21.5%

58.4%

19.2%

56.8%

No. of Countries with Properties/Investments

2 countries

2 countries

2 countries

2 countries

5 countries

Key Financial Metrics

Property Yield

5.0%

5.2%

3.8%

5.2%

4.3%

Management Fees over Distribution

14.1%

17.6%

13.9%

15.2%

23.8%

Distribution on Capital

3.0%

3.4%

3.2%

2.4%

2.5%

Distribution Margin

42.5%

47.6%

64.3%

49.9%

35.8%

Growth Trend for Past 5 Years (Since IPO for LREIT)

DPU

Downtrend

Slight Downtrend

Downtrend

Downtrend

Downtrend

NAV per Unit

Uptrend

Uptrend

Flat

Flat

Slight Downtrend

Interest Cover Ratio

Slight Downtrend

Downtrend

Downtrend

Downtrend

Downtrend

Property Yield

Downtrend

Flat

Downtrend

Uptrend

Downtrend

Distribution Margin

Downtrend

Downtrend

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 - CMT & SGREIT

2) Related Parties Shareholding - FCT, LREIT & SGREIT

3) Lease Profile - LREIT

4) Debt Profile - CMT & LREIT

5) Diversification - CMT, SPH & SGREIT

6) Key Financial Metrics - FCT & LREIT

7) Growth Trend - CMT & FCT

8) Overall - CMT & LREIT, followed by SPH

Due to COVID, the retail REIT sector has been affected and most growth trend items are at a downtrend. Distribution retention will also affect financial metrics and growth trends.


As for relative valuation:

Name

CapitaLand Mall Trust (CMT)

Frasers Centrepoint Trust (FCT)

Lendlease Global Commercial REIT (LREIT)

SPH REIT (SPH)

Starhill Global REIT (SGREIT)

52 Weeks

High

$2.670

$3.070

$0.960

$1.160

$0.760

Low

$1.490

$1.550

$0.440

$0.670

$0.375

Current

$2.010

$2.640

$0.665

$0.880

$0.450

Average Yield

High

5.95%

6.40%

6.19%

5.98%

6.85%

Low

1.44%

2.35%

3.12%

1.19%

2.45%

Average

5.12%

5.35%

4.94%

5.18%

6.14%

Current

4.54%

3.83%

6.12%

4.14%

6.58%

Average Price/NAV

High

1.27

1.24

1.14

1.17

0.91

Low

0.94

0.99

0.73

0.86

0.61

Average

1.09

1.08

0.96

1.05

0.81

Current

1.00

1.19

0.79

0.93

0.56

SGREIT price is more favorable in terms of relative valuation, followed by LREIT.


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

CapitaLand Mall Trust Analysis @ 26 July 2020

Frasers Centrepoint Trust Analysis @ 25 July 2020

Lendlease Global Commercial REIT Analysis @ 12 August 2020

SPH REIT Analysis @ 4 July 2020

Starhill Global REIT Analysis @ 19 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.

No comments:

Post a Comment