Basic Profile & Key Statistics
Performance Review
Related Parties Shareholding
- REIT sponsor's shareholding is low at 20.94%
- REIT manager's shareholding is low at 0.37%
- Directors of REIT manager's shareholding is low at 0.04%
Lease Profile
- Occupancy is high at 97.8%
- WALE is long at 6.6 years (by NLA), it is lower if weighted by GRI
- Highest lease expiry within 5 years is moderate at 27.9% which falls in this year
- Weighted average land lease expiry is slightly short at 58.27 years
Debt Profile
- Gearing ratio is moderate at 37.2%
- Cost of debt is low at 1.5%
- Fixed rate debt % is low at 67%
- All debts are unsecured debts
- WADM is moderate t at 3.1 years
- Highest debt maturity within 5 years is high at 34.6% which falls in 2025
- Interest coverage ratio is high at 13.1 times
Diversification Profile
- Top geographical contribution is slightly high at 60.9%
- Top property contribution is low at 13.2% (by Valuation)
- Top 5 properties contribution is low at 50.3% (by Valuation)
- Top tenant contribution is high at 40%
- Top 10 tenants contribution is high at 79.7%
- Top 3 countries contribution is from Singapore, Australia and Ireland which contribute more than 80% of GRI
Key Financial Metrics
- Property yield is high at 8.5%
- Management fees over distribution is slightly low at 13.6% in which unitholders receive S$ 7.35 for every dollar paid
- Distribution on capital is high at 5.4%
- Distribution margin is high at 56.6%
Trends
- Uptrend - DPU, NAV per Unit, Interest Coverage Ratio
- Flat - Property Yield, Distribution on Capital
- Slight Downtrend - Distribution Margin
Relative Valuation
- Dividend Yield - Past 4 quarters DPU @ 9.547 cents / average yield @ 4.72% = S$ 2.02
- Price/NAV - NAV @ S$ 1.18 x average P/NAV @ 1.58 = S$ 1.86
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Occupancy | Low Sponsor's Shareholding |
| Long WALE | Low Manager's Shareholding |
| Low Cost of Debt | Low Directors of REIT Manager's Shareholding |
| 100% Unsecured Debt | Low Fixed Rate Debt % |
| High Interest Coverage Ratio | Concentrated Debt Maturity |
| Low Top Property & Top 5 Properties Contributions | High Top Tenant & Top 10 Tenants Contributions |
| High Property Yield | |
| High Distribution on Capital | |
| High Distribution Margin | |
| DPU Uptrend | |
| NAV per Unit Uptrend | |
| Interest Coverage Ratio Uptrend |
It is another solid quarter performance by KDC for 1Q 2021. Moving forward, KDC is expected to benefit from the contributions from the development and AEI. A thing to note would be 27.9% of leases (by GRI) would be expiring this year, which according to the presentation, KDC is proactively engaging tenants for lease renewals.
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 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