REIT-TIREMENT - REITs Investing & Personal Finance

REITs investment & personal finance


Monday, March 07, 2022

IREIT Global Review @ 7 March 2022

Basic Profile & Key Statistics

IREIT Global invests in office and retail properties which currently owns 37 properties across Germany, Spain and France.

Performance Highlight

Gross revenue, NPI, distributable income and DPU have improved as compared to the previous year mainly due to contribution from acquisition of 60% remaining interest in Spain (Oct 2020), 27 retail properties in France (Jul 2021) and an office building in Spain (Sep 2021). 

Related Parties Shareholding

  • REIT sponsor's shareholding is high at 41.175%
  • REIT manager's shareholding is low at 0.313%
  • Directors of REIT manager's shareholding is low at .11%

Lease Profile

  • Occupancy is slightly high at 95.7%
  • WALE is slightly short at 3.8 years
  • Highest lease expiry within 5 years is moderate at 26.2% which falls in 2024
  • All properties are freehold

Debt Profile

  • Gearing ratio is low at 32.1%
  • Cost of debt is low at 1.8%
  • Fixed rate debt % is low at 20.3%
  • All debts are secured debts
  • WADM is long at 4.5 years
  • Highest debt maturity within 5 years is high at 84.6%, which falls in 2026
  • Interest coverage ratio is high at 7.7 times

Diversification Profile

  • Top geographical contribution is low at 27.9% 
  • Top property contribution is high at 27.9% 
  • Top 5 properties contribution is high at 80.2% 
  • Top tenant contribution is high at 34.8% 
  • Top 10 tenants contribution is high at 88.3%

Key Financial Metrics

  • Property yield is moderate at 5% 
  • Management fees over distribution is low at 11.7% in which unitholders receive S$ 8.55 for every dollar paid 
  • Distribution on capital is moderate at 3.7%
  • Distribution margin is high at 59.3%

Trends

* DPU for this quarter has been converted to SGD
  • Uptrend - NAV per Unit, Interest Coverage Ratio
  • Downtrend - DPU, Property Yield, Distribution on Capital, Distribution Margin

Relative Valuation

  • P/NAV - Below -1SD for 1y & 5y; Below average for 3y
  • Dividend Yield - Above average for 1y; Average for 3y & 5y

Author's Opinion

 Favorable  Less Favorable
Diversified SectorLow REIT Manager's Shareholding
High REIT Sponsor's ShareholdingLow Directors of REIT Manager's Shareholding
100% Freehold PropertiesLow Fixed Rate Debt %
Low Gearing Ratio0% Unsecured Debt
Low Cost of DebtConcentrated Debt Maturity
Long WADMHigh Top Property & Top 5 Properties Contributions
High Interest Coverage RatioHigh Top Tenant & Top 10 Tenants Contributions
Low Top Geographical ContributionDPU Downtrend
Competitive Management FeesProperty Yield Downtrend
High Distribution MarginDistribution on Capital Downtrend
NAV per Unit UptrendDistribution Margin Downtrend
Interest Coverage Ratio Uptrend

The performance has improved as compared to 1H due to contribution from the newly acquired of 27 properties in France and 1 property in Spain. Hopefully, the Russia-Ukraine War wouldn't affect its performance.


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


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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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