SREITs Fundamental Review @ 28 May 2023

Basic Overview

* Above is extracted from SREITs Data - Overview Tab

** CapitaLand India Trust is Business Trust

Key Statistics

Items	Average	Median	Min	Max
Price/ NAV	0.78	0.75	0.21	1.64
Market Cap, S$ B	2.5	1.25	0.12	13.3
Dividend Yield - Retail	7.71%	7.3%	2.46%	13.75%
Dividend Yield - Office	11.65%	7.8%	5.82%	29.5%
Dividend Yield - Healthcare	7.02%	7.02%	3.84%	10.2%
Dividend Yield - Hospitality	5.87%	5.34%	4.58%	8.98%
Dividend Yield - Industrial	6.87%	6.55%	4.92%	9.46%
Dividend Yield - Logistics	9.36%	8.96%	5.49%	15.54%
Overall Dividend Yield	8.88%	7.28%	2.46%	29.5%

* SREITs in foreign currencies are converted to SGD for Market Cap 

** Dividend yields are based on REIT Major Sector

	Highest Div. Yield (TTM)	%	Lowest Div. Yield (TTM)	%
1	Manulife US REIT	29.5%	BHG Retail REIT	2.46%
2	Prime US REIT	27.38%	Parkway Life REIT	3.84%
3	Keppel Pacific Oak US REIT	16.8%	Frasers Hospitality Trusts	4.58%
4	EC World REIT	15.54%	CDL Hospitality Trust	4.77%
5	Elite Commercial REIT	14.19%	Keppel DC REIT	4.92%

	Highest P/NAV	Time	Lowest P/NAV	Time
1	Parkway Life REIT	1.64	Lippo Malls Indonesia Retail Trust	0.21
2	Keppel DC REIT	1.53	Manulife US REIT	0.28
3	Mapletree Industrial Trust	1.22	Prime US REIT	0.29
4	Mapletree Logistics Trust	1.14	EC World REIT	0.38
5	CapitaLand Ascendas REIT	1.14	Keppel Pacific Oak US REIT	0.4

	Largest Market Cap	S$, B	Smallest Market Cap	S$, B
1	CapitaLand Integrated Commercial Trust	13.3	Lippo Malls Indonesia Retail Trust	0.12
2	CapitaLand Ascendas REIT	11.85	EC World REIT	0.23
3	Mapletree Pan Asia Commercial Trust	8.64	BHG Retail REIT	0.25
4	Mapletree Logistics Trust	7.9	Elite Commercial REIT	0.25
5	Mapletree Industrial Trust	6.19	ARA US Hospitality Trust	0.27

* SREITs in foreign currencies are converted to SGD for Market Cap

Lease Profile

Items	Unit	Average	Median	Min	Max
Committed Occupancy	%	95.1	96.3	80.4	100
Income Received in SGD/Major Currencies	%	78.4	100	0	100
Highest Lease Maturity in 5 Years	%	29.2	22.5	2	85.6
Weighted Average Lease Expiry, WALE	year	4.7	4	1	16.8
Weighted Average Land Lease Expiry	year	68.8	73.5	22.1	99

* Freehold or land lease tenure with more than 99 years is considered as 99 years in the Weighted Average Land Lease Expiry calculation.

• Committed occupancy ≥ 99%
• First REIT
• Frasers Centrepoint Trust
• Lendlease Global Commercial REIT
• Parkway Life REIT
• Committed occupancy ≤ 90%
• IREIT Global
• Lippo Malls Indonesia Retail Trust
• Manulife US REIT
• Prime US REIT
• 20 SREITs are having 100% of income received in SGD/major currencies
• Income received in SGD/major currencies = 0%
• BHG Retail REIT
• CapitaLand China Trust
• CapitaLand India Trust
• EC World REIT
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Highest lease maturity within 5 years ≤ 12.5% in a single year
• Elite Commercial REIT,
• Far East Hospitality Trust
• First REIT
• Parkway Life
• Highest lease maturity within 5 years ≥ 55% in a single year (including those without breakdown) 
• ARA Hospitality Trust
• CapitaLand Ascott Trust
• CDL Hospitality Trust
• EC World REIT
• Sasseur REIT
• WALE ≥ 7 years
• Far East Hospitality Trust
• First REIT
• Frasers Hospitality Trust
• Parkway Life REIT
• United Hampshire US REIT
• WALE ≤ 2 years
• ARA US Hospitality Trust
• CapitaLand China Trust
• EC World REIT
• Frasers Centrepoint Trust
• Sasseur REIT
• 100% freehold or properties ≥ 99 years remaining land lease
• Digital Core REIT
• IREIT Global
• Keppel Pacific Oak US REIT
• Manulife US REIT
• Prime US REIT
• Weighted average land lease expiry ≤ 32.5 years
• BHG Retail REIT
• CapitaLand China Trust
• Lippo Malls Indonesia Retail Trust
• Sabana Industrial REIT
• Sasseur REIT

Debt Profile

Items	Unit	Average	Median	Min	Max
Interest Coverage Ratio	time	4.3	3.5	1.7	15.6
Cost of Debt	%	3.61	3.53	0.99	7.72
Fixed Debt over Total Debt	%	73.1	75.5	34	100
Unsecured Debt over Total Debt	%	64.1	88.4	0	100
Gearing Ratio	%	38	38.7	25.7	49.5
Hybrid Securities over Debts + Hybrids	%	5.3	0.1	0	32.1
Highest Debt Expiry in 5 Years	%	39.9	34.8	15.4	100
Weighted Average Debt Maturity, WADM	year	2.8	2.7	0.2	4.2

• Interest coverage ratio ≥ 6.5 times
• Daiwa House Logistics Trust
• Frasers Logistics & Commercial Trust
• IREIT Global
• Keppel DC REIT
• Parkway Life REIT
• Interest coverage ratio ≤ 2.5 times
• AIMS APAC REIT
• BHG Retail REIT
• Lendlease Global Commercial REIT
• Lippo Malls Indonesia Retail
• OUE Commercial REIT
• Suntec REIT
• Cost of debt ≤ 2.5%
• CapitaLand Ascott Trust
• Daiwa House Logistics Trust
• Frasers Logistics & Commercial Trust
• IREIT Global
• Parkway Life REIT
• Cost of debt ≥ 5%
• BHG Retail REIT
• CapitaLand India Trust
• EC World REIT
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Fixed debt % ≥ 82.5%
• AIMS APAC REIT
• Cromwell European REIT
• Daiwa House Logistics Trust
• IREIT Global
• Mapletree Logistics Trust
• Paragon REIT
• Fixed debt % ≤ 60%
• BHG Retail REIT
• CDL Hospitality Trusts
• EC World REIT
• Far East Hospitality Trust
• Lippo Malls Indonesia Retail Trust
• 9 SREITs are having unsecured debt of 0%; 11 SREITs are having unsecured debt of 100%.
• Gearing Ratio ≤ 32.5%
• Far East Hospitality Trust
• Frasers Logistics & Commercial Trust
• IREIT Global
• Paragon REIT
• Sasseur REIT
• Gearing Ratio ≥ 42.5%
• Elite Commercial Trust
• Lippo Malls Indonesia Retail Trust
• Manulife US REIT
• Prime US REIT
• Suntec REIT
• United Hampshire US REIT
• Hybrid Securities over Debts + Hybrids ≥ 12.5%
• AIMS APAC REIT
• ESR-LOGOS REIT
• Lendlease Global Commercial REIT
• Lippo Malls Indonesia Retail Trust
• Paragon REIT
• 16 SREITs are having Hybrid Securities over Debts + Hybrids of 0%
• Highest debt maturity within 5 years ≤ 21.5% in a single year
• CapitaLand Ascendas REIT
• CapitaLand China Trust
• CapitaLand Integrated Commercial Trust
• Far East Hospitality Trust
• Mapletree Logistics Trust
• Suntec REIT
• Highest debt maturity within 5 years ≥ 60% in a single year
• ARA US Hospitality Trust
• BHG Retail REIT
• Digital Core REIT
• EC World REIT
• IREIT Global
• WADM ≥ 3.75 years
• CapitaLand Ascott Trust
• CapitaLand Integrated Commercial Trust
• Keppel DC REIT
• Mapletree Logistics Trust
• WADM ≤1.75 years
• ARA US Hospitality Trust
• EC World REIT
• Elite Commercial REIT
• Lippo Malls Indonesia Retail Trust
• Prime US REIT

Diversification Profile

Items	Unit	Average	Median	Min	Max
Major Sector Contribution	%	82.8	93.3	36.7	100
Top Geographical Contribution	%	52.6	54	7.7	100
Top Property Contribution	%	22.8	19.6	4.4	60.4
Top 5 Properties' Contribution	%	59.3	59.2	15.5	100
Top Tenant Contribution	%	18.3	10.5	2.1	91.5
Top 10 Tenants' Contribution	%	48.5	35.6	13	100

• Major sector contribution ≤ 50%
• AIMS APAC REIT
• CapitaLand Ascendas REIT
• Frasers Logistics & Commercial Trust
• Mapletree Pan Asia Commercial Trust
• 14 SREITs are having a major sector contribution of 100%
• Top geographical contribution ≤ 22.5%
• ARA US Hospitality Trust
• CapitaLand Ascott Trust
• Cromwell European REIT
• Elite Commercial Trust
• Frasers Logistics & Commercial Trust
• IREIT Global
• Top geographical contribution of 90%
• CapitaLand Integrated Commercial Trust
• EC World REIT
• Far East Hospitality Trust
• Frasers Centrepoint Trust
• OUE Commercial REIT
• Sabana Industrial REIT
• Top property contribution ≤ 7.5%
• ARA US Hospitality Trust,
• CapitaLand Ascendas REIT
• CapitaLand Ascott Trust
• Cromwell European REIT
• Elite Commercial REIT
• Mapletree Logistics Trust
• Top property contribution ≥ 40%
• BHG Retail REIT
• Lendlease Global Commercial Trust
• Paragon REIT
• Sasseur REIT
• Suntec REIT
• Top 5 properties' contribution ≤ 25%
• ARA US Hospitality Trust
• CapitaLand Ascendas REIT
• Elite Commercial REIT
• Mapletree Logistics Trust
• Top 5 properties' contribution ≥ 87.5%
• BHG Retail REIT
• EC World REIT
• Lendlease Global Commercial Trust
• Paragon REIT
• Sasseur REIT
• Starhill Global REIT
• Top tenant contribution ≤ 3.5%
• CapitaLand Ascendas REIT
• CapitaLand China Trust
• Keppel Pacific Oak US REIT
• Paragon REIT
• Sasseur REIT
• Suntec REIT
• Top tenant contribution ≥ 37.5%
• ARA US Hospitality Trust
• Elite Commercial REIT
• First REIT
• Parkway Life REIT
• Top 10 tenants' contribution ≤ 17.5%
• CapitaLand Ascendas REIT
• CapitaLand Ascott Trust
• CapitaLand China Trust
• Sasseur REIT
• Suntec REIT
• Top 10 tenants' contribution ≥ 95%
• ARA US Hospitality Trust
• Digital Core REIT
• EC World REIT
• Elite Commercial REIT
• First REIT

Key Financial Metrics

Items	Unit	Average	Median	Min	Max
Property Yield (Annualized)	%	5.4	5.1	3.4	9.3
Manager Management Fees over Operating Distributable Income	%	12.5	16.8	-150.2	35.9
Operating Distributable Income on Capital (Annualized)	%	3.1	3.3	-0.4	5
Operating Distributable Income Margin	%	41.6	43.9	-3.4	66.3
Operating Distribution Proportion	%	86.8	90.6	-39.6	100

• Property yield (annualized) ≥ 7.25%
• CaptiaLand India Trust
• Elite Commercial Trust
• First REIT
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Property yield (annualized) ≤ 4%
• BHG Retail REIT
• Far East Hospitality Trust
• Keppel REIT
• Lendlease Global Commercial REIT
• OUE Commercial REIT
• Suntec REIT
• Management fees over operating distributable income ≤ 10.5%
• Cromwell European REIT
• Daiwa House Logistics Trust
• Elite Commercial REIT
• IREIT Global
• Management fees over operating distributable income ≥ 22.5%
• AIMS APAC REIT
• ARA Hospitality US Trust
• Digital Core REIT
• Keppel REIT
• Mapletree Logistics Trust
• Suntec REIT
• Operating distributable income on capital (annualized) ≥ 4.25%
• Elite Commercial Trust
• Keppel DC REIT
• Sasseur REIT
• Operating distributable income on capital (annualized) ≤ 2.25%
• BHG Retail REIT
• Far East Hospitality Trust
• Keppel REIT
• Lippo Malls Indonesia Retail Trust
• OUE Commercial Trust
• Suntec REIT
• Operating distributable income margin ≥ 57.5%
• Elite Commercial REIT
• Far East Hospitality Trust
• Keppel DC REIT
• Parkway Life REIT
• Sasseur REIT
• Operating distributable income margin ≤27.5%
• ARA Hospitality Trust
• BHG Retail REIT
• CapitaLand Ascott Trust
• CDL Hospitality Trust
• Lippo Malls Indonesia Retail Trust
• OUE Commercial Trust
• Operating Distribution Proportion = 100%
• BHG Retail REIT
• EC World REIT
• Elite Commercial Trust
• Frasers Hospitality Trust
• IREIT Global
• Keppel Pacific Oak US REIT
• Parkway Life REIT
• Operating Distribution Proportion ≤ 81%
• Far East Hospitality Trust
• Keppel REIT
• Lippo Malls Indonesia Retail Trust
• Suntec REIT

Related Party Shareholding

Items	Unit	Average	Median	Min	Max
REIT Sponsor's Shareholding	%	27.35	26.46	0	56.65
REIT Manager's Shareholding	%	2.14	1.06	0	8.91
Directors of REIT Manager's Shareholding	%	4.36	0.12	0	57.62

* Include deemed interest

• REIT sponsor's shareholding ≥ 47.5%
• Far East Hospitality Trust
• IREIT Global
• Mapletree Pan Asia Commercial Trust
• OUE Commercial Trust
• Sasseur REIT
• REIT sponsor's shareholding ≤ 8%
• BHG Retail REIT
• Elite Commercial REIT
• Prime US REIT
• Suntec REIT
• United Hampshire US REIT
• REIT manager's shareholding ≥ 6.25%
• CapitaLand Ascott Trust
• CapitaLand China Trust
• CapitaLand India Trust
• CDL Hospitality Trusts
• Far East Hospitality Trust
• First REIT
• REIT manager's shareholding ≤ 0.125%
• CapitaLand Ascendas REIT
• Daiwa House Logistics Trust
• Mapletree Logistics Trust
• OUE Commercial Trust
• Sabana Industrial REIT
• Suntec REIT
• Directors of REIT manager's shareholding ≥ 9.5%
• AIMS APAC REIT
• EC World REIT
• Elite Commercial REIT
• Frasers Hospitality Trust
• Sasseur REIT
• Directors of REIT manager's shareholding ≤ 0.015%
• CapitaLand Ascendas REIT
• Lippo Malls Indonesia Retail Trust
• Mapletree Logistics Trust
• OUE Commercial Trust
• Starhill Global REIT

Income Support and Distribution from Divestment 

Name	Income Support %	Proceeds from Divestment %
CapitaLand Ascendas REIT	1.2%
CapitaLand China Trust	1%
Cromwell European REIT		3%
ESR-LOGOS REIT		9.8%
Far East Hospitality Trust		11.6%
Frasers Logistics & Commercial Trust	1.2%	3.6%
Keppel DC REIT	0.2%
Keppel REIT	0.6%	6.7%
Lippo Malls Indonesia Retail Trust	37.8%
Mapletree Industrial Trust		2.1%
Mapletree Logistics Trust	0.5%	1.5%
OUE Commercial REIT	5.7%	5.4%
Suntec REIT	3.5%	10%
United Hampshire US REIT	0.3%

* Based on the past 1 year's distribution

Dividend Yield & P/NAV

* Above is extracted from SREITs Data - Relative Tab

Below is the list of REITs with 6 out of 6 (or 4 out of 4 for newly listed) being +1SD/+2SD Dividend Yield and -1SD/-2SD P/NAV over the past 1 year, 3 years, or 5 years:

1. CapitaLand India Trust
2. Daiwa House Logistics Trust
3. Digital Core REIT
4. EC World REIT
5. Elite Commercial Trust
6. Keppel Pacific Oak US REIT
7. Keppel REIT
8. Lippo Malls Indonesia Retail Trust
9. Manulife US REIT
10. Prime US REIT
11. Suntec REIT
12. United Hampshire US REIT

Dasin Retail Trust has been removed from the review due to the lack of updated information provided beyond 3Q 2022. SREITs are trading at a discount to their NAV value, with a median Price/NAV of 0.75 and only 6 SREITs that are trading at a Price/NAV of above 1. Additionally, the median dividend yield of 7.28% is appealing and there are 9 SREITs that are trading at a dividend yield of above 10%. Nevertheless, , it's crucial to exercise caution and conduct thorough research due to each SREIT's unique risks and fundamentals that can impact performance. Therefore, investors should be diligent and conduct thorough research before making any investment decisions.

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

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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.