Basic Profile & Key Statistics
Performance Highlight
- REIT sponsor's shareholding is slightly high at 27.905%
- REIT manager's shareholding is low at 0.383%
- Directors of REIT manager's shareholding is low at 0.02%
Lease Profile
- Occupancy is slightly high at 95.3%
- WALE is long at 4.7 years
- Highest lease expiry within 5 years is high at 62.8% which falls in 2025 and beyond, without breakdown
- Weighted average land lease expiry is long at 94.09 years
Debt Profile
- Gearing ratio is moderate at 37.8%
- Cost of debt is low at 1.72%
- All debts are fixed-rate debts
- Unsecured debt is high at 91.1%
- WADM is long at 3.5 years
- Highest debt maturity within 5 years is high at 53.9%, which falls in 2025
- Interest coverage ratio is high at 5.8 times
Diversification Profile
- Top geographical contribution is low at 8.4%
- Top property contribution is low at 7.8%
- Top 5 properties contribution is low at 28.9%
- Top tenant contribution is slightly high at 12.3
- Top 10 tenants contribution is low at 31.7%
- Top 3 countries contribution is from Netherlands, Italy and France which contribute around 2/3 of GRI
Key Financial Metrics
- Property yield is slightly high at 5.5%
- Management fees over distribution is low at 5.9 % in which unitholders receive £ 16.95 for every dollar paid
- Distribution on capital is high at 4.1%
- Distribution margin is slightly low at 47%
Trends
- Slight Downtrend - Interest Coverage Ratio,
- Downtrend - DPU, NAV per Unit, Property Yield, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV - Above +1SD for 1y, 3y and 5y
- Dividend Yield - Below -1SD for 1y, 3y and 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Manager's Shareholding |
| Long WALE | Low Directors of REIT Manager's Shareholding |
| Long Weighted Average Land Lease Expiry | Concentrated Debt Maturity |
| Low Cost of Debt | DPU Downtrend |
| 100% Fixed Rate Debt | NAV per Unit Downtrend |
| High Unsecured Debt % | Property Yield Downtrend |
| Long WADM | Distribution on Capital Downtrend |
| High Interest Coverage Ratio | Distribution Margin Downtrend |
| Low Top Geographical Contribution | |
| Low Top Property & Top 5 Properties Contributions | |
| Low Top 10 Tenants Contribution | |
| Competitive Management Fees | |
| High Distribution on Capital |
This quarter's performance is similar to the previous quarter and the fundamental remains resilient. With the recent acquisitions in August and November, the 4Q performance is expected to be better. CEREIT has just announced for S$ 750 million perpetual securities programme, where the first issuance of S$ 100 million is priced at a 5% rate. The property management fee and manager's management fee continue being paid in cash since 2020, which is the main reason for the DPU drop as compared to the period before 2020.
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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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