- Main Sector(s): Healthcare, Hospitality & Retail
- Country(s) with Assets: Indonesia, Singapore & Japan
- No. of Properties (exclude development/associate/fund): 32
Key Indicators
Related Parties Shareholding
- REIT Sponsor's Shareholding: Above median by 20% or more
- REIT Manager's Shareholding: Above median by 20% or more
- Directors of REIT Manager's Shareholding: Above median by 20% or more
Lease Profile
- Occupancy: 100%
- Income in SGD/Major Currencies: Below median by 20% or more
- WALE: Above median by 20% or more
- Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in 2027
- Weighted Average Land Lease Expiry: Below median by 10% or more
Debt Profile
- Gearing Ratio: ± 10% from median
- Gearing ratio including perps: ± 10% from median
- Cost of Debt: Above median by 20% or more
- Fixed Rate Debt %: Below median by 10% or more
- Unsecured Debt %: Below median by 20% or more
- WADM: ± 10% from median
- Highest Debt Maturity within 5 Years: Above median by 20% or more; Falls in 2026
- Interest Coverage Ratio: Above median by 10% or more
Diversification Profile
- Top Geographical Contribution: Below median by 20% or more
- Top Property Contribution: Below median by 10% or more
- Top 5 Properties' Contribution: Below median by 10% or more
- Top Tenant Contribution: Above median by 20% or more
- Top 10 Tenants' Contribution: Above median by 20% or more
Key Financial Metrics
- Property Yield: Above median by 20% or more
- Management Fees over Distribution: Above median by 20% or more; $5.10 distribution for every dollar paid
- Operating Distributable Income on Capital: Above median by 20% or more
- Operating Distributable Income Margin: ± 10% from median
- Operating Distribution Proportion: ± 10% from median
DPU Breakdown
- TTM DPU Breakdown
- 90.8% from Operation
- 9% from Management Fees Paid in Units
- 0.2% from Release of Retention
Trends
- Uptrend: Property Yield
- Flat: Occupancy
- Slight Downtrend: Operating Distributable Income on Capital
- Downtrend: DPU from Operation, NAV per Unit, Interest Coverage Ratio, Operating Distributable Income Margin
Relative Valuation
- P/NAV: Average for 1y, 3y & 5y
- Dividend Yield: Average for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Sponsor's Shareholding | Low Income in SGD/Major Currencies |
| High REIT Manager's Shareholding | High Cost of Debt |
| High Directors of REIT Manager's Shareholding | Low Fixed Rate Debt % |
| 100% Occupancy | Low Unsecured Debt % |
| Long WALE | Concentrated Debt Maturity |
| No Major Lease Expiry within 5 Years | High Top Tenant & Top 10 Tenants' Contributions |
| High Interest Coverage Ratio | Non-Competitive Management Fees |
| Low Top Geographical Contribution | DPU from Operation Downtrend |
| Low Top Property & Top 5 Properties' Contributions | NAV per Unit Downtrend |
| High Property Yield | Interest Coverage Ratio Downtrend |
| High Operating Distributable Income on Capital | Operating Distributable Income Margin Downtrend |
| Property Yield Uptrend |
Performance has been impacted by higher financing costs, which has led to a decline in performance as compared to the previous quarter. The cost of debt has increased from 3.7% as of 4Q 2022 to the current rate of 4.7%. There is no debt refinancing requirement until May 2025, albeit the 62.8% fixed rate debt is relatively low as compared to other SREITs. Additionally, there is an outstanding rental arrear of approximately S$2.6 million from PT Metropolis Propertindo Utama and its subsidiaries (MPU), but it is expected to be fully paid within this year based on the payment plan from MPU.
For more information, check out:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and details of Singapore REIT
REIT Review - List of previous REIT review posts
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
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REIT Investing Community - Facebook Group where members share and discuss REIT topic
*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.
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