REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Sunday, March 21, 2021

SREITs Fundamental Review @ 21 March 2021

* Above is extracted from SREITs Data
** Ascendas India Trust and Dasin Retail Trust are Business Trusts
*** Eagle Hospitality Trust and Soilbuild Business Space REIT are excluded for statistics below.

Key Statistics

 ItemsAverage MedianMinMax
Price/ NAV1.000.940.402.28
Market Cap, S$ B2.711.460.3014.11
Dividend Yield - Retail4.99%4.82%2.99%9.07%
Dividend Yield - Office6.32%6.12%3.26%8.84%
Dividend Yield - Healthcare10.48%10.48%3.30%17.66%
Dividend Yield - Hospitality2.66%2.81%0.00%3.96%
Dividend Yield - Industrial5.53%5.78%3.37%7.18%
Dividend Yield - Logistics6.32%6.69%4.39%7.50%
Overall Dividend Yield5.63%4.87%0.00%17.66%

* SREITs in foreign currencies are converted to SGD for Market Cap Comparison 

** Dividend yields are based on REIT Major Sector

Highest Div. Yield% Lowest Div. Yield%
1First REIT17.66%ARA US Hospitality Trust0%
2United Hampshire US REIT9.07%Frasers Hospitality Trust2.66%
3Keppel Pacific Oak US REIT8.84%Ascott Residence Trust2.81%
4Prime US REIT8.41%SPH REIT2.99%
5Manulife US REIT7.83%Frasers Centrepoint Trust3.12%

Highest P/NAVTime Lowest P/NAVTime
1Keppel DC REIT2.28Lippo Malls Indonesia Retail Trust0.40
2Parkway Life REIT2.14First REIT0.47
3Mapletree Industrial Trust1.59Dasin Retail Trust0.51
4Mapletree Logistics Trust1.46Starhill Global REIT0.65
5Ascendas REIT1.39OUE Commercial REIT 0.67

Largest Market CapS$, B Smallest Market CapS$, B
1CapitaLand Integrated Commercial Trust14.11BHG Retail REIT0.30
2Ascendas REIT12.38First REIT0.38
3Mapletree Logistics Trust8.00Sabana Shari'ah Compliant Industrial REIT0.41
4Mapletree Commercial Trust6.89ARA Hospitality Trust0.41
5Mapletree Industrial Trust6.35Elite Commercial Trust0.42

* SREITs in foreign currencies are converted to SGD for Market Cap Comparison

Lease Profile

 ItemsUnitAverage MedianMinMax
Committed Occupancy%95.095.876.5100
Income Received in SGD/Major Currencies%77.91000100
Highest Lease Maturity in 5 Years%35.5831.80100
Weighted Average Lease Expiry, WALEyear4.5841.113.7
Weighted Average Land Lease Expiryyear66.570.223.4199

  • Sabana Shari'ah Compliant Industrial REIT and Lippo Malls Indonesia Retail Trust are having committed occupancy of less than 90%
  • 7 SREITs are having 0% of income received in SGD/major currencies.
  • ARA Hospitality Trust, Cromwell Europrean REIT, EC World REIT, Parkway Life REIT, Sasseur REIT and Starhill Global REIT are having the highest lease maturity within 5 years of more than 50% in a single year.
  • CapitaLand China Trust, Frasers Centrepoint Trust, Mapletree North Asia Commercial Trust and Sasseur REIT are having WALE of less than 2.5 years.
  • BHG Retail REIT, CapitaLand China Trust, Dasin Retail Trust, ESR REIT and Sasseur REIT are having weighted average land lease expiry of less than 30 years.

Debt Profile

 ItemsUnitAverage MedianMinMax
Interest Coverage Ratiotime4.
Cost of Debt%2.792.730.535.51
Fixed Debt over Total Debt%72.376.612.4100
Unsecured Debt over Total Debt%58.473.80100
Gearing Ratio%
Preferred/Perpetual Securities over Debt%4.60028.1
Highest Debt Expiry in 5 Years%39.330.90100
Weighted Average Debt Expiry, WADEyear2.892.991.25.3
  • 8 SREITs are having interest coverage ratio of less than 2.5 times
  • Ascendas India Trust, BHG Retail REIT, Dasin Retail Trust, EC World REIT and Lippo Malls Indonesia Retail Trust are having cost of debt of more than 4%.
  • 8 SREITs are having fixed debt % of less than 25%.
  • 11 SREITs are having unsecured debt of 0%.
  • 5 SREITs with the highest gearing ratio are First REIT @ 49%, ARA Hospitality Trust @ 48.2%, Suntec REIT @ 44.3%, Lippo Malls Indonesia Retail Trust @ 41.9% and ESR-REIT @ 41.6
  • AIMS APAC REIT, ARA LOGOS Logistics Trust, Lippo Mall Indonesia Retail Trust and SPH REIT are having Preferred/Perpetual Securities over Debt of more than 15%.
  • BHG Retail REIT, EC World REIT, Elite Commercial REIT, Lendlease Global Commercial REIT and Sasseur REIT are having the highest debt maturity within 5 years of more than 75% in a single year.
  • BHG Retail REIT, Dasin Retail, EC World REIT, First REIT and Sabana Shari'ah Compliant Industrial REIT are having WADM of less than 2 years.

Diversification Profile

 ItemsUnit Average Median  MinMax
Major Sector Contribution%84.996.139.8100
Top Geographical Contribution%58.655.49.1100
Top Property Contribution%24.620.44.465.9
Top 5 Properties Contribution%63.462.716.4100
Top Tenant Contribution%20.311.03.2100
Top 10 Tenants Contribution%48.437.117.6100
  • 16 SREITs are having major sector contribution of 100%.
  • Dasin Retail Trust, ESR REIT, Far East Hospitality Trust, Mapletree Commecial Trust and Sabana Shari'ah Compliant Industrial REITare having top geographical contribution of 100%.
  • BHG Retail REIT, Lendlease Global Commercial REIT, SPH REIT and Suntec REIT are having top property contribution of more than 50%.
  • Lendlease Global Commercial REIT, Mapletree Commercial Trust, Sasseur REIT and SPH REIT are having top 5 properties contribution of 100%.
  • ARA Hospitality Trust, Elite Commercial REIT, FIRST REIT and Parkway Life REIT are having top tenant contribution of more than 50%.
  • ARA Hospitality Trust, Elite Commercial REIT and First REIT are having top 10 tenants contribution of 100%.

Key Financial Metrics

 ItemsUnitAverage MedianMinMax
Property Yield (Annualized)%4.95.1-0.78.6
Management Fees over Distribution%17.414.6064.3
Distribution on Capital (Annualized)%
Distribution Margin%44.946.9070.8
  • ARA Hospitality Trust, Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust and Suntec REIT are having property yield (annualized) of less than 3%.
  • 7 SREITs are having management fees over Distribution of more than 25%.
  • ARA Hospitality Trust, Ascott Residence Trust, BHG Retail REIT, Dasin Retatil Trust, Frasers Hospitality Trust and Lippo Malls Indonesia Retail Trust are having distribution on capital (annualized) of less than 1.5%.
  • ARA Hospitality Trust, Ascott Residence Trust, BHG Retail REIT, Dasin Retatil Trust and Lippo Malls Indonesia Retail Trust are having distribution margin of less than 25%.

Financial Engineering/Income Support and Distribution from Asset Disposal 

 NameTop-Up from Support / Distribution Top-Up from Disposal / Distribution 
ARA LOGOS Logistics Trust2.2% 
Ascendas REIT1.7% 
Ascott Residence Trust 47.8%
BHG Retail REIT4.8% 
CDL Hospitality Trusts 33.1%
Cromwell European REIT 3.2%
Dasin Retail Trust26.8% 
Keppel DC REIT3.6% 
Keppel REIT 5.1%
Lippo Malls Indonesia Retail Trust18.7% 
Mapletree Logistics Trust 5.9%
OUE Commercial REIT12.4% 
Suntec REIT3.6% 
United Hampshire US REIT13.7%

*BHG Retail REIT income support is ended in December 2020.

Generally, SREITs are slightly undervalued in terms of Price/NAV with the median at 0.94. The median dividend yield of 4.87% is still attractive in view of the current low interest rate environment. However, note that both DPU and NAV are lagging figures. SREITs result announcement for 1Q 2021 is around the corner, you could refer to SREITs Result Date page in which I would update the result announcement date as and when available.

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