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REITs investment & personal finance


Wednesday, August 03, 2022

AIMS APAC REIT Review @ 3 August 2022

Basic Profile & Key Statistics
  • Main Sector(s): Logistics, Industrial & Office
  • Country(s) with Assets: Singapore & Australia
  • No. of Properties (exclude development/associate/fund): 29

Key Indicators


Performance Highlight

Gross revenue and NPI increased mainly due to contribution from the Woolworths HQ acquired in November 2021 and higher rental income from existing properties. However, higher income was offset by higher operating expenses, distributions to Perpetual Securities holders, higher interest expense and management fees, resulting in lower improvement in distribution to unitholders and DPU.

Rental Reversion
Rental revision for the latest quarter is at +9.5%.

Related Parties Shareholding

  • REIT sponsor's shareholding: Below median for more than 20%
  • REIT manager's shareholding: Above median for more than 20%
  • Directors of REIT manager's shareholding: Above median for more than 20%

Lease Profile

  • Occupancy: ± 5% from median
  • WALE: Above median for more than 20%
  • Highest lease expiry within 5 years: ± 10% from median; Falls in FY24
  • Weighted average land lease expiry: Below median for more than 20%

Debt Profile

  • Gearing ratio: ± 10% from median
  • Gearing ratio including perps: Above median for more than 20%
  • Cost of debt: ± 10% from median
  • Fixed rate debt %: Above median for more than 10%
  • Unsecured debt %: Below median for more than 20%
  • WADM: Above median for more than 10%
  • Highest debt maturity within 5 years: Above median for more than 20%; Falls in FY27
  • Interest coverage ratio: Below median for more than 20%

Diversification Profile

  • Top geographical contribution: Above median for more than 20%
  • Top property contribution: Below median for more than 20%
  • Top 5 properties' contribution: Below median for more than 10%
  • Top tenant contribution: Above  median for more than 20%
  • Top 10 tenants' contribution: Above median for more than 20%

Key Financial Metrics

  • Property yield: Above median for more than 10%
  • Management fees over distribution: Above median for more than 20%; $4.44 distribution for every dollar paid 
  • Distribution on capital: Below median for more than 10%
  • Distribution margin: Below median for more than 10%

Trends


  • Uptrend: Occupancy
  • Flat: NAV per Unit 
  • Downtrend: DPU, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin

Relative Valuation

  • P/NAV: Average for 1y, 3y & 5y
  • Dividend Yield: Average for 1y & 3y; Below average for 5y

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow REIT Sponsor's Shareholding
High REIT Manager's ShareholdingShort Weighted Average Land Lease Expiry
High Directors of REIT Manager's ShareholdingHigh Perpetual Securities %
High OccupancyLow Unsecured Debt %
Long WALEConcentrated Debt Maturity
High Fixed Rate Debt %Low Interest Coverage Ratio
Long WADMHigh Top Geographical Contribution
Low Top Property & Top 5 Properties ContributionsHigh Top Tenant & Top 10 Tenants Contributions
High Property YieldNon-Competitive Management Fees
Occupancy UptrendLow Distribution on Capital
 Low Distribution Margin
 DPU Downtrend
 Interest Coverage Ratio Downtrend
 Property Yield Downtrend
 Distribution on Capital Downtrend
 Distribution Margin Downtrend

The gross revenue and NPI are slightly more than the previous quarter, but with a lower distribution and without a detailed breakdown. Nonetheless, let's the effect of strong rental reversion for the past 2 quarters could reflect in upcoming quarters.


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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