- Main Sector(s): Office
- Country(s) with Assets: Singapore, Australia, South Korea & Japan
- No. of Properties (exclude development/associate/fund): 12
Key Indicators
- 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: Below median by 20% or more
Lease Profile
- Occupancy: ± 5% from median
- WALE: Above median by 20% or more
- Highest lease expiry within 5 years: ± 10% from median; Falls in 2026
- Weighted Average Land Lease Expiry: Above median by 10% or more
Debt Profile
- Gearing ratio: ± 10% from median
- Gearing ratio includes perps: ± 10% from median
- Cost of debt: ± 10% from median
- Fixed rate debt %: ± 10% from median
- Unsecured debt %: ± 10% from median
- WADM: ± 10% from median
- Highest debt maturity within 5 years: Below median by 20% or more; Falls in 2024
- Interest coverage ratio: Below median by 10% or more
Diversification Profile
- Top geographical contribution: Above median by 20% or more
- Top property contribution: Above median by 20% or more
- Top 5 properties' contribution: Above median by 20% or more
- Top tenant contribution: Below median by 10% or more
- Top 10 tenants' contribution: ± 10% from median
Key Financial Metrics
- Property yield: Below median by 20% or more
- Management fees over operating distributable income: Above median by 20% or more; $2.89 distribution for every dollar paid
- Operating distributable income on capital: Below median by 20% or more
- Operating distributable income margin: ± 10% from median
- Operating distribution proportion: Below median by 20% or more
DPU Breakdown
- TTM DPU Breakdown
- 68.8% from Operation
- 23.8% from Management Fees Paid in Units
- 0.6% from Income Support
- 6.8% from Divestment Proceeds
Trends
- Uptrend: DPU from Operation, Property Yield, Operating Distributable Income on Capital
- Slight Uptrend: Interest Coverage Ratio
- Slight Downtrend: NAV per Unit, Occupancy
- Downtrend: Operating Distributable Income Margin
Relative Valuation
- P/NAV: Below -1SD for 1Y & 3y; Below -2SD for 5y
- Dividend Yield: Above +1SD for 1y; Above +2SD for 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 | Low Interest Coverage Ratio |
| Long WALE | High Top Geographical Contribution |
| Long Weighted Average Land Lease Expiry | High Top Property & Top 5 properties' Contributions |
| Well Spread Debt Maturity | Low Property Yield |
| Low Top Tenant Contribution | Non-Competitive Management Fees |
| DPU from Operation Uptrend | Low Operating Distributable Income on Capital |
| Property Yield Uptrend | Low Operating Distribution Proportion |
| Operating Distributable Income on Capital Uptrend | Operating Distributable Income Margin Downtrend |
Overall, the performance has been affected by increasing interest rates. However, distributable income is higher after factoring in anniversary distribution. There is only 4% of borrowing maturing this year and the majority is in 4Q 2023. Coupled with the 75% fixed rate, the impact of any further interest increase would be minimal. Moving forward, Blue & William would start contributing income and the developer would provide a 3 years rental guarantee on unlet space.
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*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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