SREITs Basic Fundamental Review - 2020 Jan

Based on 3Q 2019 Result & 3rd Jan 2020 Closing Price. Click to Enlarge

* Ascendas India Trust and Dasin Retail Trust are Business Trusts.
** Lendlease Global Commercial REIT result not release yet.

The above table is extracted from spreadsheet in SREITs Data page.
Dividend Yield:

Yield	Average	Median	Lowest	Highest
Healthcare	6.27%	6.27%	3.94%	8.6%
Retail	6.43%	6.21%	4.3%	8.93%
Office	5.73%	5.75%	3.88%	7.28%
Hospitality	7.12%	5.83%	5.15%	11.67%
Industrial	6.09%	5.92%	3.62%	8.95%
Logistics	6.99%	7.51%	4.71%	8.25%

* Based on REIT Major Sector

Financial Metrics:

Financial Metrics	Unit	Average	Median	Lowest	Highest
Price/ NAV	time	1.1	1.07	0.61	1.94
Market Cap, B	S$	2.58	1.84	0.35	9.28
Property Yield (Annualized)	%	5.88	5.86	3.34	9.13
Distribution on Management Fees	time	8.25	8.06	3.84	20.56
Distribution on Capital (Annualized)	%	4.07	4.1	1.59	5.86
Distribution Margin	%	51.38	55.59	21.66	69.72

* SREITs in Foreign Currencies converted to SGD to Market Cap Comparison

Lease Profile:

Lease Profile	Unit	Average	Median	Lowest	Highest
Portfolio Occupancy	%	95.54	96.74	84.27	100
Revenue Per Available Unit, RevPAU	S$	155.21	148.01	132.49	201.52
Income Received in SGD/Major Currencies	%	77.94	100	0	100
Highest Lease Maturity in 5 Years	%	25.14	22	13.4	68.8
Weighted Average Lease Expiry, WALE	year	4.5	4.05	1.4	14.3
Weighted Average Land Lease Expiry	year	66.67	72.42	23.62	99

* SREITs in Foreign Currencies converted to SGD to REVPAU Comparison

Debt Profile:

Debt Profile	Unit	Average	Median	Lowest	Highest
Interest Cover Ratio	time	5.21	4.66	2.93	12.51
Cost of Debt	%	3.24	2.99	1.01	6.19
Fixed Debt over Total Debt	%	74.59	78.9	12.66	98.57
Unsecured Debt over Total Debt	%	59.34	81.19	0	100
Gearing Ratio	%	35.2	36.2	27.5	41.6
Highest Debt Expiry in 5 Years	%	33.7	29.1	0	100
Weighted Average Debt Expiry, WADE	year	3.22	3.16	1	6.3

Diversification  Profile:

Diversification Profile	Unit	Average	Median	Lowest	Highest
Major Sector Contribution	%	85.58	96.55	35.29	100
2nd Sector Contribution	%	11.4	3.26	0	46.62
Top Geographical Contribution	%	63.4	62.54	10.63	100
Top Property Contribution	%	27.22	25.13	5.25	77.5
Top Tenant Contribution	%	15.56	9.65	3.2	82.04
Top 10 Tenants Contribution	%	49.97	37.69	17	100

Income Support/Distribution:

Income Support/Distribution	Value	Remark
Ascendas REIT	2%	Estimated from Annual Report
BHG Retail REIT	14.54%
Cache Logistics Trust	3.40%
Dasin Retail Trust	38.42%
Lippo Malls Indonesia Retail Trust	3.47%
OUE Commercial REIT	13.67%
Sasseur REIT	NA	Previous FY 0%, Current FY not Disclosed

Summary:
General Highlight:
With average P/NAV at 1.10, SREIT sector is slightly overvalue now, however, SREITs dividend yield remain attractive as compared to dividend stocks. Most SREITs with market cap more than S$ 3 billions only give less than 5% dividend yield now, besides Ascendas REIT, Mapletree North Asia Commercial Trust, OUE Commercial Trust & Suntec REIT. Parkway Life REIT with market cap S$ 2 billions currently at 3.33% yield.

Lease Profile Highlight:

Median occupancy rate is 96.74%, only Sabana REIT & Soilbuild REIT have less than 90% occupancy rate. Median WALE is 4.05 years, retail REIT generally has shorter WALE, with Frasers Centrepoint Trust and Sasseur REIT WALE have WALE less than 2 years.

Debt Profile Highlight:
Median interest cover at 4.66, only Dasin Retail Trust has interest cover ratio less than 3. Most REIT has high fixed debt, with median at 78.9%. SREITs with less than 50% fixed debt are BHG Retail REIT, Dasin Retail Trust, EC World REIT and Sasseur REIT, all pure China properties. Median gearing ratio is 36.2%, with only ESR-REIT and OUE Commercial Trust are over 40%.  Median WADE is 3.16 year, with BHG Retail REIT and Sabana REIT less than 2 years.

Diversification Profile Highlight:
Median top geographical contribution is 62.54%, you could refer here for how I classified this. Currently there are 12 SREITs that have their geographical contribution more than 90%. Median top property contribution is 25.13% where BHG Retail REIT, Mapletree North Asia Commercial Trust, SPH REIT and Suntec REIT have more than 50% contribution from their flagship property. Median top 10 tenants is 37.69%; there are 10 SREITs with top 10 tenants contribute more than 80% of their income.

Income Support/Distribution Highlight:
Those with less than 5% is not a big concern as it won't have much impact when the support is ended. You could refer here for my previous post on income support. BHG Retail REIT income support of  approx. 15% will reduced to approx. 5% for year 2020 and then end at same year. Dasin Retail Trust income support of approx. 38% will reduced to approx. 30% for year 2020, the % is different from IPO prospectus due to enlarged unit base. For OUE Commercial Trust, current income support receivable left about 20 millions. If based on the recent draw down rate of 4 millions per quarter, the last income support would be on 4Q 2020.

As SREITs result announcement for 4Q 2019 is around the corner, you could refer to SREITs Result Date page for their result announcement date.