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Dividend Yield
| Items | Average | Median | Min | Max |
|---|---|---|---|---|
| Dividend Yield - Healthcare | 9.19% | 9.19% | 3.21% | 15.17% |
| Dividend Yield - Retail | 7.19% | 6.69% | 4.11% | 16.38% |
| Dividend Yield - Office | 6.67% | 7.16% | 3.91% | 9.04% |
| Dividend Yield - Hospitality | 5.26% | 5.68% | 0% | 9.5% |
| Dividend Yield - Industrial | 5.09% | 4.68% | 2.8% | 8.21% |
| Dividend Yield - Logistics | 6.93% | 7.79% | 4% | 8.15% |
| Overall | 6.6% | 6.64% | 0% | 16.38% |
* Based on REIT Major Sector
The dividend yield is based on annualized past 4 quarters dividends, in which the median dividend yield is 6.64%. The 5 SREITs with highest dividend yield are Lippo Malls Indonesia Retail Trust @ 16.38%, First REIT @ 15.17%, United Hampshire US REIT @ 10.42%, ARA US Hospitality Trust @ 9.5% and IREIT Global @ 9.04%. The 5 SREITs with lowest dividend yield are Eagle Hospitality Trust @ 0% (due to never distribute any distribution), Keppel DC REIT @ 2.8%, Parkway Life REIT @ 3.21%, Mapletree Industrial Trust @ 3.74% and Mapletree Commercial Trust @ 3.91%.
Key Financial Metrics
| Items | Unit | Average | Median | Min | Max |
|---|---|---|---|---|---|
| Price/ NAV | time | 0.95 | 0.85 | 0.17 | 2.49 |
| Market Cap, B | S$ | 2.35 | 1.28 | 0.16 | 11.73 |
| Property Yield (Annualized) | % | 5.56 | 5.45 | 3.13 | 8.56 |
| Management Fees over Distribution | % | 14.82 | 13.91 | 0 | 29.49 |
| Distribution on Capital (Annualized) | % | 3.43 | 3.27 | 0 | 5.36 |
| Distribution Margin | % | 45.8 | 48.53 | 0 | 69.92 |
* SREITs in Foreign Currencies converted to SGD for Market Cap Comparison
The median Price/NAV is 0.85. The 5 SREITs with highest Price/NAV are Keppel DC REIT @ 2.49, Parkway Life REIT @ 2.14, Mapletree Industrial Trust @ 1.98, Mapletree Logistics Trust @ 1.69 and Ascendas REIT @ 1.47. The 5 SREITs with lowest Price/NAV are Eagle Hospitality Trust @ 0.17, Lippo Malls Indonesia Retail Trust @ 0.29, ARA US Hospitality Trust @ 0.39, First REIT @ 0.45 and Starhill Global REIT @ 0.54.
Lease Profile
| Items | Unit | Average | Median | Min | Max |
|---|---|---|---|---|---|
| Committed Occupancy | % | 95.14 | 96.1 | 77.3 | 100 |
| Income Received in SGD/Major Currencies | % | 79.28 | 100 | 0 | 100 |
| Highest Lease Maturity in 5 Years | % | 30.43 | 26.4 | 0 | 100 |
| Weighted Average Lease Expiry, WALE | year | 4.92 | 4.2 | 0.8 | 19 |
| Weighted Average Land Lease Expiry | year | 66.36 | 70.74 | 23.66 | 99 |
Median committed occupancy is healthy at 96.1%. Sabana REIT, Lippo Malls Indonesia Retail Trust, and Soilbuild Business Space REIT are having an occupancy rate of less than 90%. Sasseur REIT and Frasers Centrepoint Trust are having WALE that less than 2 years.
Debt Profile
| Items | Unit | Average | Median | Min | Max |
|---|---|---|---|---|---|
| Interest Cover Ratio | time | 4.53 | 3.8 | 0.23 | 15.8 |
| Cost of Debt | % | 2.99 | 2.79 | 0.6 | 5.8 |
| Fixed Debt over Total Debt | % | 73.62 | 80 | 12.92 | 100 |
| Unsecured Debt over Total Debt | % | 57.85 | 74.26 | 0 | 100 |
| Gearing Ratio | % | 36.57 | 36.4 | 28.1 | 42.5 |
| Highest Debt Expiry in 5 Years | % | 39.28 | 31.2 | 13.82 | 100 |
| Weighted Average Debt Expiry, WADE | year | 2.98 | 2.8 | 1.51 | 5 |
The median interest cover ratio is healthy at 3.8 times. ARA Hospitality Trust, Dasin Retail Trust, Eagle Hospitality Trust, and EC World REIT are having an interest cover ratio less than 2.5 times. The median gearing ratio is healthy at 36.4%. The 5 SREITs with the highest gearing ratio are ARA Hospitality Trust @ 42.5%, ESR-REIT @ 41.8%, SUNTEC REIT @ 41.3%, ARA Logistics Trust @ 40.4% and OUE Commercial Trust @ 40.1%. BHG Retail REIT, Dasin Retail Trust, First REIT, OUE Commercial Trust, Sabana REIT, and Soilbuild Business Space REIT are having WADE less than 2 years.
Diversification Profile
| Items | Unit | Average | Median | Min | Max |
|---|---|---|---|---|---|
| Major Sector Contribution | % | 84.66 | 96 | 39.4 | 100 |
| 2nd Sector Contribution | % | 11.73 | 4 | 0 | 46.38 |
| 3rd Sector Contribution | % | 3.27 | 0 | 0 | 25.02 |
| Top Geographical Contribution | % | 60.44 | 57.48 | 9.1 | 100 |
| Top Property Contribution | % | 25.55 | 20.89 | 4.52 | 69.11 |
| Top Tenant Contribution | % | 21.3 | 10 | 3.2 | 100 |
| Top 10 Tenants Contribution | % | 48.78 | 36 | 17.6 | 100 |
There are 15 SREITs having its top geographical contribution of more than 75%; 18 having top property contribution of more than 25%; 9 having top tenant contribution of more than 25%, and 11 having top 10 tenants contribution of more than 75%.
SREITs with Financial Engineering/Income Support and Distribution from Disposal
| Name | Support / Distribution | Disposal / Distribution |
|---|---|---|
| ARA LOGOS Logistics Trust | 2% | |
| Ascendas REIT | 1.8% | |
| Ascott Residence Trust | 18.2% | |
| BHG Retail REIT | 4.8% | |
| CDL Hospitality Trusts | 7% | |
| Cromwell European REIT, EUR | 2.9% | |
| Dasin Retail Trust | 29.6% | |
| ESR-REIT | 9.4% | |
| Frasers Logistics & Commercial Trust | 2.7% | |
| Keppel DC REIT | 2.9% | |
| Keppel REIT | 8.5% | |
| Lippo Malls Indonesia Retail Trust | 6% | |
| Mapletree Logistics Trust | 3.3% | |
| OUE Commercial REIT | 13.5% | |
| Soilbuild Business Space REIT | 1.2% | |
| Suntec REIT | 0.8% | 5.8% |
| United Hampshire US REIT, USD | 12.8% |
*Based on past 4 quarters distribution
From the above, Ascott Residence Trust, Dasin Retail Trust, OUE Commercial Trust, and United Hampshire US REIT are having more than 10% of its distribution from income support or asset disposal. Note that ESR-REIT is quite close to 10% as well.
Generally, SREITs are undervalued in terms of Price/NAV with median at 0.85, especially for the hospitality and retail sectors. The median dividend yield of 6.64% is also attractive in view of the current low interest rate environment. However, note that both DPU and NAV are lagging figures.
SREITs result announcement for 3Q 2020 is around the corner, you could refer to SREITs Result Date page for their result announcement date.
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