Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is moderate at 28.06%
- REIT manager's shareholding is low at 0.41%
- Directors of REIT manager's shareholding is low at 0.02%
Lease Profile
- Occupancy is moderate at 94.6%
- WALE is long at 4.8 years
- Highest lease expiry within 5 years is high at 59.6% which falls in 2025 and beyond, without breakdown
- Weighted average land lease expiry is long at 94.59 years
Debt Profile
- Gearing ratio is moderate at 38.5%
- Cost of debt is low at 1.72%
- All debts are fixed-rate debts
- Unsecured debt % is high at 91.1%
- WADM is long at 4 years
- Highest debt maturity within 5 years is high at 53.9% which falls in 2025
- Interest coverage ratio is high at 6 times
Diversification Profile
- Top geographical contribution is low at 8.4%
- Top property contribution is low at 7.8%
- Top 5 properties contribution is low at 28.9%
- Top tenant contribution is high at 12.9%
- Top 10 tenants contribution is slightly low at 33.1%
- Top 3 countries contribution is from Netherlands, Italy and France which contribute more than 65% of GRI
Key Financial Metrics
- Property yield is slightly high at 5.4%
- Management fees over distribution is low at 6% in which unitholders receive €16.67 for every dollar paid
- Distribution on capital is high at 4%
- Distribution margin is moderate at 45.4%
- 3.2% of latest 4 quarters DPU is from distribution from asset disposal
Trends
- Flat - Interest Coverage Ratio
- Downtrend - DPU, NAV per Unit, Property Yield, Distribution on Capital, Distribution Margin
Relative Valuation
- Dividend Yield - Latest 4 quarters DPU @ 17.025 cents / average yield @ 8.07% = € 2.11
- Price/NAV - NAV @ € 2.44 x average P/NAV @ 0.95= € 2.32
DPU and NAV per Unit are adjusted for the 5 to 1 consolidation.
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Manager's Shareholding |
| Long WALE | Directors of REIT Manager's Shareholding |
| Long Weighted Average Land Lease Expiry | Concentrated Debt Maturity |
| Low Cost of Debt | High Top Tenant Contribution |
| 100% Fixed Rate Debt | DPU Downtrend |
| High Unsecured Debt % | NAV per Unit Downtrend |
| Long WADM | Property Yield Downtrend |
| High Interest Coverage Ratio | Distribution on Capital Downtrend |
| Low Top Geographical Contribution | Distribution Margin Downtrend |
| Low Top Property & Top 5 Properties Contributions | |
| Competitive Management Fees | |
| High Distribution on Capital |
CEREIT fundamentals remain healthy despite the COVID-19 restriction/partial lockdown around Europe. Moving forward, the 11 new properties should improve CEREIT performance in the coming quarters. Do note that the 5 to 1 unit consolidation exercise is completed, the new trading codes are CWBU for EUR and CWCU for SGD.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
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 accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and 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.
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