Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 32.537%
- REIT manager's shareholding is high at 3.095%
- Directors of REIT manager's shareholding is high at 0.222%
Lease Profile
- Occupancy is slightly high at 96.3%
- WALE is short at 2.7 years
- Highest lease expiry within 5 years is low at 23.5% which falls in FY22/23
- Weighted average land lease expiry is slightly long at 75.47 years
Debt Profile
- Gearing ratio is slightly low at 34.1%
- Cost of debt is moderate at 2.39%
- Fixed rate debt % is moderate at 75.3%
- All debts are unsecured debt
- WADM is long at 3.5 years
- Highest debt maturity within 5 years is low at 24% which falls in FY24/25
- Interest coverage ratio is slightly high at 4.8 times
Diversification Profile
- All of its properties are located in Singapore
- Top property contribution is high at 43.1%
- Top 5 properties contribution is high at 100%
- Top tenant contribution is low at 10.7%
- Top 10 tenants contribution is low at 28.5%
Key Financial Metrics
- Property yield is slightly low at 4.5%
- Management fees over distribution is low at 11.8% in which unitholders receive S$ 8.47 for every dollar paid
- Distribution on capital is moderate at 3.7%
- Distribution margin is high at 64%
- Including retention, management fees over distribution, distribution on capital and distribution margin would be 11.2% (low), 3.9% (slightly high) and 67.1% (high) respectively.
Trends
- Uptrend - NAV per Unit
- Flat - DPU, Distribution Margin (include retention)
- Slight Downtrend - Interest Coverage Ratio
- Downtrend -Property Yield, Distribution on Capital
Relative Valuation
- P/NAV - Below -1SD for 1y, 3y & 5y
- Dividend Yield - Above +2SD for 1y; Above +1SD for 3y; Above average for 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Short WALE |
| High REIT Sponsor's Shareholding | High Top Geographical Contribution |
| High REIT Manager's Shareholding | High Top Property & Top 5 Properties Contributions |
| High Directors of REIT Manager's Shareholding | Property Yield Downtrend |
| Well Spread Lease Expiry | Distribution on Capital Downtrend |
| 100% Unsecured Debt | |
| Long WADM | |
| Well Spread Debt Maturity | |
| Low Top Tenant & 10 Tenants Contributions | |
| Competitive Management Fees | |
| High Distribution Margin | |
| NAV per Unit Uptrend |
With the easing of COVID restriction, gross revenue and NPI have improved as compared to the previous quarter. For retention, there is a remaining S$ 15.7 million retentions left. The current big news for MCT would be the proposed merger with MNACT. The pro-forma DPU and NAV per unit are expected to be improved. There are 2 scheme consideration options for MNACT unitholders as below:
You could also refer below for more information:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive contents
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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