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REITs investing & personal finance

Sunday, November 13, 2022

Prime US REIT Review @ 13 November 2022

Basic Profile & Key Statistics
  • Main Sector(s): Office
  • Country(s) with Assets: United States
  • No. of Properties (exclude development/associate/fund): 14

Key Indicators

Performance Highlight

For 3Q, despite an increase in gross revenue, NPI and income available for distribution have declined yoy mainly due to a decline in occupancy, which includes WeWork who vacated in 4Q2021 and Whitney Bradley & Brown in 3Q2022.

Rental Reversion

Rental reversion for 2Q is at positive 10.1%.

Related Parties Shareholding

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

Lease Profile

  • Occupancy: Below median for more than 5% 
  • WALE: ± 10% from median
  • Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2025
  • Weighted average land lease expiry: 100% freehold properties

Debt Profile

  • Gearing ratio: ± 10% from median
  • Cost of debt: Above median for more than 10%
  • Fixed rate debt %: Above median for more than 10%
  • Unsecured debt %: 0%
  • WADM: Below median for more than 20%
  • Highest debt maturity within 5 years: Above median for more than 20%; Falls in 2024
  • Interest coverage ratio: Above median for more than 10%

Diversification Profile

  • Top geographical contribution: Below 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: Below median for more than 20%
  • Top 10 tenants' contribution: ± 10% from median

Key Financial Metrics

  • Property yield: Above median for more than 20%
  • Management fees over distribution: Below median for more than 20%; $9.62distribution for every dollar paid 
  • Distribution on capital: Above median for more than 20%
  • Distribution margin: ± 10% from median


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

Relative Valuation

  • Current 52 Weeks Range: 17.5%
  • P/NAV: Below -2SD for 1y, 3y & 5y
  • Dividend Yield: Above +2SD for 1y, 3y & 5y

Author's Opinion

 Favorable Less Favorable
High Directors of REIT Manager's ShareholdingLow REIT Sponsor's Shareholding
Well Spread Lease ExpiryLow REIT Manager's Shareholding
100% freehold propertiesLow Occupancy
High Fixed Rate Debt %High Cost of Debt
High Interest Coverage Ratio0% Unsecured Debt
Low Top Geographical ContributionShort WADM
Low Top Property & Top 5 Properties ContributionsConcentrated Debt Maturity
Low Top Tenant ContributionOccupancy Downtrend
High Property YieldInterest Coverage Ratio Downtrend
Competitive Management FeesProperty Yield Downtrend
High Distribution on CapitalDistribution on Capital Downtrend

As compared to the previous quarter, despite a similar gross revenue, NPI and distributable income have declined by 4.7% and 5.8% respectively. From the presentation, the leasing volume for 3Q is close to combination of 1Q + 2Q, with 52% from new leases. If the leasing momentum could continue, then occupancy and performance should show improvement in the 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 due to 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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