Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 40.3%
- REIT manager's shareholding is high at 1.84%
- Directors of REIT manager's shareholding is low at 0.07%
Lease Profile
- Occupancy is slightly high at 96.7%
- WALE is long at 6.2 years
- Highest lease expiry within 5 years is low at 18.7% which falls in 2022
- Weighted average land lease expiry is long at 87.28 years
Debt Profile
- Gearing ratio is moderate at 38.9%
- Cost of debt is low at 1.97%
- Fixed rate debt % is slightly high at 82%
- Unsecured debt % is moderate at 77.7%
- WADM is slightly long at 3.1 years
- Highest debt maturity within 5 years is moderate at 32% which falls in 2024
- Interest coverage ratio is moderate at 4 times
- Perpetual securities over debts is moderate at 9.7%
Diversification Profile
- Top geographical contribution is high at 68.1%
- Top property contribution is high at 32.2%
- Top 5 properties contribution is high at 80.3%
- Top tenant contribution is low at 8.8%
- Top 10 tenants contribution is moderate at 36.1%
Key Financial Metrics
- Property yield is low at 4.3%
- Management fees over distribution is high at 23.6% in which unitholders receive S$ 4.24 for every dollar paid
- Distribution on capital is low at 2.7%
- Distribution margin is high at 57.8%
- 0.5% of the past 12 months DPU is from income support
Trends
- Flat - DPU, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin
- Slight Downtrend - NAV per Unit
Relative Valuation
- P/NAV - Average for 1y, 3y and 5y
- Dividend Yield - Average for 1y and 5y; Higher than average for 3y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| High REIT Manager's Shareholding | High Top Geographical Contribution |
| Long WALE | High Top Property & Top 5 Properties Contributions |
| Well Spread Lease Expiry | Low Property Yield |
| Long Weighted Average Land Lease Expiry | Non-Competitive Management Fees |
| Low Cost of Debt | Low Distribution on Capital |
| Low Top Tenant Contribution | |
| High Distribution Margin |
KREIT fundamentals and performance have improved as compared to the previous year. Now, KREIT is able to increase its DPU without being required to top up DPU with proceeds from divestment. On 2 August, Keppel Corporation proposed the acquisition of SPH in which for every 1000 SPH shares, unitholders would receive S$ 668 + 598 KREIT shares + 782 shares. At this moment, there is no detail on how this would impact KREIT moving forward.
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SREITs Dashboard - Detailed information on individual Singapore REIT
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REIT Analysis - List of previous REIT analysis posts
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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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