- Main Sector(s): Retail & Office
- Country(s) with Assets: Singapore, Italy
- No. of Properties (exclude associate/fund): 3
Key Indicators
Related Parties Shareholding
- REIT Sponsor's Shareholding: ± 10% from median
- REIT Manager's Shareholding: Above 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 20% or more
- Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in FY2028, without breakdown
- Weighted Average Land Lease Expiry: Above median by 20% or more
Debt Profile
- Gearing Ratio: ± 10% from median
- Gearing Ratio including Perps: Above median by 20% or more
- Cost of Debt: Below median by 20% or more
- Fixed Rate Debt %: Below median by 10% or more
- Unsecured Debt %: 100%
- WADM: Below median by 20% or more
- Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY2024
- Interest Coverage Ratio: Below median by 20% 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: Above median by 20% or more
- Top 10 Tenants' Contribution: Above median by 10% or more
Key Financial Metrics
- Property Yield: Below median by 10% or more
- Management Fees over Operating Distributable Income: Above median by 20% or more; $4.59 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 10% or more
DPU Breakdown
- TTM DPU Breakdown
- 77.8% from Operation
- 22.2% from Management Fees Paid in Units
Trends
- Flat: Committed Occupancy
- Slight Downtrend: DPU from Operation, Property Yield
- 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; Below -1SD for 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | High Perpetual Securities % |
| High REIT Manager's Shareholding | Low Fixed Rate Debt % |
| High Directors of REIT Manager's Shareholding | Short WADM |
| High Committed Occupancy | Low Interest Coverage Ratio |
| Long WALE | High Top Geographical Contribution |
| Long Weighted Average Land Lease Expiry | High Top Property & Top 5 Properties' Contributions |
| Low Cost of Debt | High Top Tenant & Top 10 Tenants' Contributions |
| 100% Unsecured Debt | Low Property Yield |
| Well Spread Debt Maturity | Non Competitive Management Fees |
| Low Operating Distributable Income on Capital | |
| Low Operating Distribution Proportion | |
| NAV per Unit Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Operating Distributable Income on Capital Downtrend | |
| Operating Distributable Income Margin Downtrend |
As compared to the previous 6 months, gross revenue and NPI have improved. However, distributable income and DPU are lower due to higher finance expenses and trust expenses. Regarding debt, the fixed rate debt is relatively low at 61% and there is a 27% debt maturity in FY2024, in which the manager has obtained a €300 million unsecured 5-year sustainability-linked loan facility to refinance it.
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
REIT-TIREMENT Patreon - Support my work and get exclusive content
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
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.
No comments:
Post a Comment