- Main Sector(s): Retail
- Country(s) with Assets: Singapore & Malaysia
- No. of Properties (exclude development/associate/fund): 10
Key Indicators
Performance Highlight
Retail portfolio rental reversion is at 4.7%. For Central Plaza, the rental reversion is at 2.1%.
Both shopper traffic and tenant sales are above the 2022 level. While shopper traffic is still below the pre-COVID level, tenant sales have continued to surpass the pre-COVID level.
Asset Enhancement Initiative
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: Below median by 20% or more
Lease Profile
- Occupancy: ± 5% from median
- WALE: Below median by 20% or more
- Highest Lease Expiry within 5 Years: Above median by 10% or more; Falls in FY26
- Weighted Average Land Lease Expiry: ± 10% from median
Debt Profile
- Gearing Ratio: ± 10% from median
- Cost of Debt: ± 10% from median
- Fixed Rate Debt %: Below median by 10% or more
- Unsecured Debt %: Below median by 10% or more
- WADM: Below median by 10% or more
- Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY26
- Interest Coverage Ratio: ± 10% from median
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 20% or more
- Top 10 Tenants' Contribution: Below median by 20% or more
Key Financial Metrics
- Property Yield: ± 10% from median
- Management Fees over Operating Distributable Income: Above median by 10% or more; $5.52 distribution for every dollar paid
- Operating Distributable Income on Capital: ± 10% from median
- Operating Distributable Income Margin: Above median by 10% or more
- Operating Distribution Proportion: ± 5% from median
DPU Breakdown
- TTM DPU Breakdown
- 94.1% from Operation
- 5.6% from Management Fees Paid in Units
- 0.3% from Released of Retention
Trends
- Uptrend: DPU from Operation, NAV per Unit
- Slight Uptrend: Committed Occupancy
- Flat: Property Yield
- Downtrend: Interest Coverage Ratio, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
- Dividend Yield: Above +1SD for 1y, 3y & 5y
- P/NAV: Below -1SD for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| High REIT Manager's Shareholding | Short WALE |
| High Committed Occupancy | Concentrated Lease Expiry |
| Well Spread Debt Maturity | Low Fixed Rate Debt % |
| Low Top Tenant & Top 10 Tenants' Contributions | Low Unsecured Debt % |
| High Operating Distributable Income Margin | Short WADM |
| DPU from Operation Uptrend | High Top Geographical Contribution |
| NAV per Unit Uptrend | High Top Property & Top 5 Properties' Contributions |
| Non Competitive Management Fees | |
| Interest Coverage Ratio Downtrend | |
| Operating Distributable Income on Capital Downtrend | |
| Operating Distributable Income Margin Downtrend |
Compared to the previous half year, there has been a decline in gross revenue and NPI due to the AEI at Tampines 1. On the bright side, distribution from joint ventures/associates has increased. Despite an increase of S$ 9.6 mil finance costs, DPU has only declined by 1.8% due to the higher amount of management fees payable in units and the release of retention. Excluding management fees payable in units and retention/release, DPU (from operations) declined by 6.8% as compared to the previous half year. In terms of debt, refinancing for FY24 debt has been completed, therefore, there is no refinancing requirement in the next fiscal year. However, the fixed-rate debt proportion is relatively low at only 63%.
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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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