- Main Sector(s): Office
- Country(s) with Assets: Singapore, Australia & South Korea
- No. of Properties (exclude development/associate/fund): 10
Key Indicators
Performance Highlight
The development of Blue & Willliam is on track to be completed by mid-2023.
For every 0.5% increase in interest rate, the DPU impact is 2.1% per annum.
Related Parties Shareholding
- REIT sponsor's shareholding: Above median for more than 20%
- REIT manager's shareholding: Above median for more than 20%
- Directors of REIT manager's shareholding: Below median for more than 20%
Lease Profile
- Occupancy: ± 5% from median
- WALE: Above median for more than 20%
- Highest lease expiry within 5 years: Below median for more than 10%; Falls in 2026
- Weighted Average Land Lease Expiry: Above median for more than 20%
Debt Profile
- Gearing ratio: ± 10% from median
- Gearing ratio includes perps: ± 10% from median
- Cost of debt: Below median for more than 10%
- Fixed rate debt %: ± 10% from median
- Unsecured debt %: ± 10% from median
- WADM: ± 10% from median
- Highest debt maturity within 5 years: Below median for more than 20%; Falls in 2024
- Interest coverage ratio: ± 10% from median
Diversification Profile
- Top geographical contribution: Above median for more than 20%
- Top property contribution: Above median for more than 20%
- Top 5 properties' contribution: Above median for more than 20%
- Top tenant contribution: Below median for more than 20%
- Top 10 tenants' contribution: ± 10% from median
Key Financial Metrics
- Property yield: Below median for more than 10%
- Management fees over distribution: Above median for more than 20%; $4.17 distribution for every dollar paid
- Distribution on capital: Below median for more than 20%
- Distribution margin: Above median for more than 20%
Trends
- Uptrend: Interest Coverage Ratio, Property Yield
- Slight Uptrend: DPU, Distribution on Capital
- Slight Downtrend: NAV per Unit, Occupancy
- Downtrend: Distribution Margin
Relative Valuation
- P/NAV: Below -2SD for 1y, 3y & 5y
- Dividend Yield: Above +2SD for 1y, 3y & 5y
Author's Opinion
Favorable | Less Favorable |
---|---|
High REIT Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
High REIT Manager's Shareholding | High Top Geographical Contribution |
Long WALE | High Top Property & Top 5 Properties Contributions |
Well Spread Lease Expiry | Low Property Yield |
Long Weighted Average Land Lease Expiry | Non Competitive Management Fees |
Low Cost of Debt | Low Distribution on Capital |
Well Spread Debt Maturity | Distribution Margin Downtrend |
Low Top Tenant Contribution | |
High Distribution Margin | |
Interest Coverage Ratio Uptrend | |
Property Yield Uptrend |
Property income and NPI have dropped slightly as compared to the previous quarter. Occupancy has improved from 95.5% to 96.8% and the average signing rent has increased to S$ 11.47 psf as compared to S$ 11.43 in the previous quarter. One notable announcement would be that KREIT is going to distribute a $20 million capital gain annually over the next 5 years, which amounts to a total of $100 million. $20 million is approximate 9% of the past 12 months' distribution, this would definitely help to maintain the stability of DPU in view of the impact of the interest rate hikes, inflation and rising energy cost.
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 content
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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