Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 40.69%
- REIT manager's shareholding is high at 4.27%
- Directors of REIT manager's shareholding is low at 0.07%
Lease Profile
- Occupancy is slightly high at 96%
- WALE is short at 1.53 years
- Highest lease expiry within 5 years is high at 33.3% which falls in FY2022
- Weighted average land lease expiry is slight long at 72.55 years
Debt Profile
- Gearing ratio is slightly low at 35.2%
- Cost of debt is low at 2.16%
- Fixed rate debt % is low at 54%
- Unsecured debt % is low at 39.4%
- WADM is slightly short at 2.64 years
- Highest debt maturity within 5 years is low at 25.8% which falls in FY2025
- Interest coverage ratio is high at 5 times
Diversification Profile
- Top geographical contribution is high at 99.8%
- Top property contribution is high at 22.7%
- Top 5 properties contribution is high at 76.2%
- Top tenant contribution is low at 3.8%
- Top 10 tenants contribution is low at 19.6%
Key Financial Metrics
- Property yield is low at 4%
- Management fees over distribution is high at 16.5% in which unitholders receive S$ 6.06 for every dollar paid
- Distribution on capital is slightly low at 3%
- Distribution margin is high at 54.3%
Trends
- Uptrend - NAV per Unit
- Downtrend - DPU, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin
Relative Valuation
- Dividend Yield - Past 4 quarters DPU @ 10.368 cents / average yield @ 5.03% = S$ 2.06
- Price/NAV - NAV @ S$ 2.31 x average P/NAV @ 1.09 = S$ 2.52
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| High Manager's Shareholding | Short WALE |
| Low Cost of Debt | Concentrated Lease Expiry |
| Well Spread Debt Maturity | Low Fixed Debt % |
| High Interest Coverage Ratio | Low Unsecured Debt % |
| Low Top Tenant & Top 10 Tenants Contributions | High Top Geographical Contribution |
| High Distribution Margin | High Top Property & Top 5 Properties Contributions |
| NAV per Unit Uptrend | Low Property Yield |
| Non-Competitive Management Fees | |
| DPU Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Property Yield Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
This is the first 5 months of result after the ARF acquisition, as such, there is no apple to apple comparison for the performance. After this acquisition, FCT has performed capital recycling by divesting 3 properties namely Bedok Point, Anchorpoint and YewTee Point, where the divestment of Yew Tee Point is expected to complete on 28 May 2021. With the gradual economic recovery and vaccination in Singapore, FCT performance is expected to be improved in the coming quarters.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
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 accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and 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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