It has been a long time since I do a comparison for the same REIT sector. Today, let's try to do a quick comparison for U.S. Office SREITs. For mobile user, please view in landscape mode.
|
Name |
Keppel Pacific Oak REIT, KORE |
Manulife
US REIT, |
Prime US REIT, PRIME |
|
Basic & Key Statistics |
|||
|
Listed Date |
9-Nov-2017 |
20-May-2016 |
19-Jul-2019 |
|
Dividend Frequency |
Semi-Annual |
||
|
Unit Price |
USD 0.720 |
USD 0.765 |
USD 0.795 |
|
Dividend Yield |
8.49% |
7.80% |
8.81% |
|
Price / NAV |
0.90 |
1.00 |
0.91 |
|
Market Cap |
USD 0.68 Billion |
USD 1.2 Billion |
USD 0.84 Billion |
|
Related Parties Shareholding |
|||
|
REIT Sponsor |
7.37% |
8.57% |
1.96% |
|
REIT Manager |
0.86% |
0.25% |
0.47% |
|
Directors of REIT Manager |
0.87% |
0.12% |
2.50% |
|
Lease Profile |
|||
|
Committed Occupancy |
94.3% |
96.2% |
93.0% |
|
Weighted Average Lease Expiry, WALE |
4.1 years |
5.7 years |
4.8 years |
|
Highest Lease Expiry in 5 Years |
17.2% |
17.1% |
18.6% |
|
Number of Properties |
13 units |
9 units |
12 units |
|
Weighted Average Land Lease Expiry |
All Freehold Properties |
||
|
Debt Profile |
|||
|
Gearing Ratio |
37.4% |
39.1% |
33.0% |
|
Interest Cover Ratio |
4.4 times |
3.8 times |
5.4 times |
|
Cost of Debt |
3.3% |
3.3% |
2.6% |
|
Fixed Rate Debt Proportion |
84.3% |
92.7% |
90.0% |
|
Unsecured Debt Proportion |
100.0% |
0.0% |
0.0% |
|
Weighted Average Debt Maturity, WADE |
2.5 years |
2.3 year |
4.6 years |
|
Highest Debt Maturity in 5 Years |
28.9% |
26.8% |
33.0% |
|
Diversification Profile |
|||
|
Top Geographical Contribution |
42.4% |
34.6% |
15.6% |
|
Top Property Contribution |
18.7% |
18.0% |
14.0% |
|
Top Tenant Contribution |
3.6% |
6.2% |
8.5% |
|
Top 10 Tenants Contribution |
19.9% |
35.8% |
43.0% |
|
Key Financial Metrics |
|||
|
Property Yield |
6.6% |
6.0% |
7.1% |
|
Management Fees over Distribution |
10.0% |
11.5% |
10.2% |
|
Distribution on Capital |
4.6% |
4.5% |
5.2% |
|
Distribution Margin |
40.9% |
47.3% |
49.2% |
|
Growth Trend (Since IPO) |
|||
|
DPU |
Slight Uptrend |
Flat |
Flat |
|
NAV per Unit |
Slight Downtrend |
Slight Downtrend |
Flat |
|
Interest Cover Ratio |
Downtrend |
Downtrend |
Flat |
|
Property Yield |
Flat |
Flat |
Slight Downtrend |
|
Distribution Margin |
Flat |
Slight Downtrend |
Slight Uptrend |
* 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) Related Parties Shareholding - Tie
2) Lease Profile - MUST
3) Debt Profile - PRIME
4) Diversification - PRIME & KORE
5) Key Financial Metrics - PRIME
6) Growth Trend - PRIME
7) Overall - PRIME, followed by KORE
How about relative valuation?
|
Name |
Keppel
Pacific Oak REIT |
Manulife
US REIT |
Prime US
REIT |
|
52 Weeks |
|||
|
High |
USD 0.800 |
USD 1.080 |
USD 1.070 |
|
Low |
USD 0.390 |
USD 0.545 |
USD 0.500 |
|
Current |
USD 0.720 |
USD 0.765 |
USD 0.795 |
|
Average Yield |
|||
|
High |
9.91% |
8.54% |
8.53% |
|
Low |
6.91% |
5.74% |
7.27% |
|
Average |
8.12% |
7.15% |
7.81% |
|
Current |
8.49% |
7.80% |
8.81% |
|
Average Price/NAV |
|||
|
High |
1.00 |
1.19 |
1.09 |
|
Low |
0.76 |
0.87 |
0.83 |
|
Average |
0.90 |
1.03 |
1.00 |
|
Current |
0.90 |
1.00 |
0.91 |
PRIME seems more undervalued in terms of relative valuation.
Above is just a quick comparison for the 3 U.S. office focused SREITs, you could refer more detail on the individual analysis below:
- Keppel Pacific Oak US REIT (Previously Keppel-KBS US REIT) Analysis @ 2 August 2020
- Manulife US REIT Analysis @ 4 August 2020
- Prime US REIT Analysis @ 8 August 2020
For more information, you could refer:
SREITs Dashboard - Detailed information on individual Singapore REIT as well as summary
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