Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 52.6%
- REIT manager's shareholding is high at 5.43%
- Directors of REIT manager's shareholding is moderate at 0.16%
Lease Profile
- WALE is long at 9.52 years
- Highest lease expiry within 5 years is low at 7.6% which falls in this year
- Weighted average land lease expiry is moderate at 61.83 years
Debt Profile
- Gearing ratio is high at 41.3%
- Cost of debt is low at 2.1%
- Fixed rate debt % is low at 68.2%
- All debts are unsecured debts
- WADM is short at 2.4 years
- Highest debt maturity within 5 years is low at 22.5% which falls in 2024
- Interest coverage ratio is low at 2.8 times
Diversification Profile
- All properties are located in Singapore
- Top property contribution is moderate at 18.6%
- Top 5 properties contribution is low at 55.4%
- Top tenant contribution is high at 15%
- Top 10 tenants contribution is high at 78.4%
Key Financial Metrics
- Property yield is low at 2.7%
- Management fees over distribution is high at 18.8% in which unitholders receive S$ 5.32 for every dollar paid
- Distribution on capital is low at 1.9%
- Distribution margin is high at 61%
- Include retention, management fees over distribution, distribution on capital and distribution margin is at 17.6% (high), 2% (low) and 65.4% (high) respectively.
Trends
- Downtrend - DPU, NAV per Unit, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV - Average for 1y, 3y and 5y
- Dividend Yield - Average for 1y; Below -1SD for 3y and 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | High Gearing Ratio |
| High REIT Sponsor's Shareholding | Low Fixed Rate Debt % |
| High REIT Manager's Shareholding | Short WADE |
| Long WALE | Low Interest Coverage Ratio |
| No Major Lease Expiry within 5 Years | High Top Geographical Contribution |
| Low Cost of Debt | High Top Tenant & Top 10 Tenants Contributions |
| 100% Unsecured Debt | Low Property Yield |
| Well Spread Debt Maturity | Non-Competitive Management Fees |
| Low Top 5 Properties Contribution | Low Distribution on Capital |
| High Distribution Margin | DPU Downtrend |
| NAV per Unit Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Property Yield Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
FEHT performance continues supported by a high proportion of fixed rent from its master lease. Singapore is expecting 80% of the population would be fully vaccinated in September, and looking to allow quarantine-free travel for those who are fully vaccinated by the time. Hopefully, this could go as planned so that improvement in hospitality and retail sectors can be seen by this year end.
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*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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