- Main Sector(s): Office
- Country(s) with Assets: England, Scotland & Wales
- No. of Properties (exclude development/associate/fund): 155
Key Indicators
Related Parties Shareholding
- REIT Sponsor's Shareholding: Below median by 20% or more
- REIT Manager's Shareholding: Below median by 20% or more
- Directors of REIT Manager's Shareholding: Above median by 20% or more
Lease Profile
- Committed Occupancy: ± 5% from median
- WALE: Above median by 10% or more
- Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in 2028
- Weighted Average Land Lease Expiry: Above median by 20% or more
Debt Profile
- Gearing Ratio: Above median by 10% or more
- Cost of Debt: Above median by 20% or more
- Fixed Rate Debt %: Below median by 10% or more
- Unsecured Debt %: 0%
- WADM: Below median by 20% or more
- Highest Debt Maturity within 5 Years: Above median by 20% or more; Falls in 2024
- Interest Coverage Ratio: ± 10% from median
Diversification Profile
- Top Geographical Contribution: Below median by 20% or more
- Top Property Contribution: Below median by 20% or more
- Top 5 Properties' Contribution: Below median by 20% 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 Operating Distributable Income: Below median by 20% or more; $10 distribution for every dollar paid
- Operating Distributable Income on Capital: Above median by 20% or more
- Operating Distributable Income Margin: Above median by 20% or more
- Operating Distribution Proportion: 100%
DPU Breakdown
- TTM DPU Breakdown
- 100% from Operation
- TTM DPU = 95.5% of Distributable Income
Trends
- Uptrend: Property Yield
- Slight Downtrend: DPU from Operation, Committed Occupancy
- Downtrend: NAV per Unit, Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
- Dividend Yield: Above +2SD for 1y, 3y & 5y
- P/NAV: Below -2SD for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| Long WALE | Low REIT Manager's Shareholding |
| Long Weighed Average Land Lease Expiry | Concentrated Lease Expiry |
| Low Top Geographical Contribution | High Gearing Ratio |
| Low Top Property & Top 5 Properties' Contributions | High Cost of Debt |
| High Property Yield | Low Fixed Rate Debt % |
| Competitive Management Fees | 0% Unsecured Debt |
| High Operating Distributable Income on Capital | Short WADM |
| High Operating Distributable Income Margin | Concentrated Debt Maturity |
| 100% Operating Distribution Proportion | High Top Tenant & Top 10 Tenants' Contributions |
| Property Yield Uptrend | NAV per Unit Downtrend |
| Interest Coverage Ratio Downtrend | |
| Operating Distributable Income on Capital Downtrend | |
| Operating Distributable Income Margin Downtrend |
Compared to the previous six-month period, gross revenue and NPI remain similar after excluding dilapidation settlements of £1.9 million. However, DPU has experienced a sharp decline due to a significant increase in finance expenses and the 10% retention in 1H 2023. Regarding debt, there is no refinancing requirement until 4Q 2024, however, the fixed-rate debt proportion is relatively low at 62%. Still, any potential increase in finance expenses is likely to be minor given that the current borrowing cost is already somewhat high at 5.2%.
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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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