Singapore Retail Focused SREITs - CMT vs FCT vs LREIT vs SPH vs SGREIT

Previously I posted about China Retail Focused SREITs and BizTrust, this time let's compare Singapore Retail SREITs before the major events of CMT merger and FCT acquisition. As there are some numbers of SREITs having both retail and office properties, so have to set some criteria for this comparison: 1) major sector to be Retail and 2) major geographical location to be in Singapore. Therefore MCT, MNACT and Suntec are not included this round. For mobile user, please view in landscape mode.

Name	CapitaLand Mall Trust (CMT)	Frasers Centrepoint Trust (FCT)	Lendlease Global Commercial REIT (LREIT)	SPH REIT (SPH)	Starhill Global REIT (SGREIT)
Basic & Key Statistics
Listed Date	17-Jul-2002	5-Jul-2006	2-Oct-2019	24-Jul-2013	20-Sep-2005
Dividend Frequency	Quarter	Semi-Annual	Semi-Annual	Quarter	Semi-Annual
Unit Price	$2.010	$2.640	$0.665	$0.88	$0.450
Dividend Yield	4.54%	3.83%	6.12%	4.14%	6.58%
Price / NAV	1.00	1.19	0.79	0.93	0.56
Market Cap	SGD 7.42 Billion	SGD 2.95 Billion	SGD 0.78 Billion	SGD 2.43 Billion	SGD 0.99 Billion
Related Parties Shareholding
REIT Sponsor	28.47%	36.45%	24.97%	65.69%	36.92%
REIT Manager	1.33%	4.25%	0.73%	2.53%	1.04%
Directors of REIT Manager	0.02%	0.07%	0.47%	0.05%	0.01%
Lease Profile
Committed Occupancy	97.7%	94.6%	99.5%	98.8%	96.2%
Income in SGD/Major Currencies	98.6%	98.3%	100.0%	100.0%	89.0%
Weighted Average Lease Expiry, WALE	2 years	1.61 years	4.9 years	2.6 years	5.6 years
Highest Lease Expiry in 5 Years	33.3%	32.3%	23.0%	31.0%	53.4%
Number of Properties	15 units	7 units	2 units	5 units	10 units
Weighted Average Land Lease Expiry	70.45 years	70.74 years	89.19 years	90.59 years	63.42 years
Debt Profile
Gearing Ratio	34.4%	35.0%	35.1%	29.3%	39.7%
Interest Cover Ratio	4.3 times	4.8 times	4.6 times	N/A	2.9 times
Cost of Debt	3.1%	2.5%	0.9%	2.8%	3.2%
Fixed Rate Debt Proportion	51.5%	50.0%	100.0%	63.5%	87.4%
Unsecured Debt Proportion	100.0%	76.3%	100.0%	0.0%	75.6%
Weighted Average Debt Maturity, WADE	4.5 years	2.3 years	3.1 years	2 years	2.7 years
Highest Debt Maturity in 5 Years	18.9%	34.2%	84.3%	26.0%	32.0%
Diversification Profile
Top Sector Contribution	93.2%	99.2%	64.0%	81.0%	86.2%
Top Geographical Contribution	98.6%	98.3%	64.0%	87.8%	63.0%
Top Property Contribution	10.6%	36.7%	64.0%	69.1%	34.1%
Top Tenant Contribution	3.2%	3.2%	36.0%	3.2%	22.3%
Top 10 Tenants Contribution	22.1%	21.5%	58.4%	19.2%	56.8%
No. of Countries with Properties/Investments	2 countries	2 countries	2 countries	2 countries	5 countries
Key Financial Metrics
Property Yield	5.0%	5.2%	3.8%	5.2%	4.3%
Management Fees over Distribution	14.1%	17.6%	13.9%	15.2%	23.8%
Distribution on Capital	3.0%	3.4%	3.2%	2.4%	2.5%
Distribution Margin	42.5%	47.6%	64.3%	49.9%	35.8%
Growth Trend for Past 5 Years (Since IPO for LREIT)
DPU	Downtrend	Slight Downtrend	Downtrend	Downtrend	Downtrend
NAV per Unit	Uptrend	Uptrend	Flat	Flat	Slight Downtrend
Interest Cover Ratio	Slight Downtrend	Downtrend	Downtrend	Downtrend	Downtrend
Property Yield	Downtrend	Flat	Downtrend	Uptrend	Downtrend
Distribution Margin	Downtrend	Downtrend	Downtrend	Downtrend	Downtrend

* Above information is extracted from SREITs Dashboard.

** Growth Trend for DPU is not adjusted for any equity fundraising.

*** Distribution retention would affect financial metrics and growth trends.

Without assigning weightage, just consider favorable points will get:

1) Basic & Key Statistics - CMT & SGREIT

2) Related Parties Shareholding - FCT, LREIT & SGREIT

3) Lease Profile - LREIT

4) Debt Profile - CMT & LREIT

5) Diversification - CMT, SPH & SGREIT

6) Key Financial Metrics - FCT & LREIT

7) Growth Trend - CMT & FCT

8) Overall - CMT & LREIT, followed by SPH

Due to COVID, the retail REIT sector has been affected and most growth trend items are at a downtrend. Distribution retention will also affect financial metrics and growth trends.

As for relative valuation:

Name	CapitaLand Mall Trust (CMT)	Frasers Centrepoint Trust (FCT)	Lendlease Global Commercial REIT (LREIT)	SPH REIT (SPH)	Starhill Global REIT (SGREIT)
52 Weeks
High	$2.670	$3.070	$0.960	$1.160	$0.760
Low	$1.490	$1.550	$0.440	$0.670	$0.375
Current	$2.010	$2.640	$0.665	$0.880	$0.450
Average Yield
High	5.95%	6.40%	6.19%	5.98%	6.85%
Low	1.44%	2.35%	3.12%	1.19%	2.45%
Average	5.12%	5.35%	4.94%	5.18%	6.14%
Current	4.54%	3.83%	6.12%	4.14%	6.58%
Average Price/NAV
High	1.27	1.24	1.14	1.17	0.91
Low	0.94	0.99	0.73	0.86	0.61
Average	1.09	1.08	0.96	1.05	0.81
Current	1.00	1.19	0.79	0.93	0.56

SGREIT price is more favorable in terms of relative valuation, followed by LREIT.

Above is just a quick comparison, you could refer more detail on the individual analysis below:

- CapitaLand Mall Trust Analysis @ 26 July 2020

- Frasers Centrepoint Trust Analysis @ 25 July 2020

- Lendlease Global Commercial REIT Analysis @ 12 August 2020

- SPH REIT Analysis @ 4 July 2020

- Starhill Global REIT Analysis @ 19 August 2020

For more information, you could refer:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

REIT Investing Community - Facebook Group where members share and discuss REIT topic

*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee the accuracy, completeness, and reliability. It should not be taken as financial advice or statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.