Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is low at 22.6%
- REIT manager's shareholding is low at 0.56%
- Directors of REIT manager's shareholding is high at 3.54%
Lease Profile
- Occupancy is slightly high at 96.8%
- WALE is long at 4.7 years
- Highest lease expiry within 5 years is low at 17% which falls in FY2023
- Weighted average land lease expiry is long at 89.27years
Debt Profile
- Gearing ratio is slightly low at 35.3%
- Cost of debt is low at 1.9%
- Fixed rate debt % is moderate at 70.6%
- Unsecured debt % is high at 81.9%
- WADM is slightly long at 3.1 years
- Highest debt maturity within 5 years is slightly low at 28.2% which falls in FY2025
- Interest coverage ratio is high at 6.8 times
Diversification Profile
- Top geographical contribution is low at 22.9%
- Top property contribution is low at 7.7%
- Top 5 properties contribution is low at 22.1%
- Top tenant contribution is low at 4.9%
- Top 10 tenants contribution is low at 24%
- Top 3 countries contribution is from Australia, Germany and Singapore which contribute more than 90% of GRI
Key Financial Metrics
- Property yield is slightly high at 5.5%
- Management fees over distribution is slightly high at 14.7% in which unitholders receive S$ 6.80 for every dollar paid
- Distribution on capital is high at 4.1%
- Distribution margin is high at 57.4%
Trends
- Uptrend - NAV per Unit
- Slight Uptrend - DPU
- Slight Downtrend - Distribution Margin
- Downtrend -Interest Coverage Ratio, Property Yield, Distribution on Capital
Relative Valuation
- Dividend Yield - Latest 4 quarters DPU @ 7.45 cents / average yield @ 6.35% = S$ 1.17.
- Price/NAV - NAV @ S$ 1.14 x average P/NAV @ 1.16 = S$ 1.32
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Sponsor's Shareholding |
| High Directors of REIT Manager's Shareholding | Low REIT Manager's Shareholding |
| Long WALE | Interest Coverage Ratio Downtrend |
| Well Spread Lease Expiry | Property Yield Downtrend |
| Long Weighted Average Land Lease Expiry | Distribution on Capital Downtrend |
| Low Cost of Debt | |
| High Unsecured Debt % | |
| High Interest Coverage Ratio | |
| Low Top Geographical Contribution | |
| Low Top Property & Top 5 Properties Contributions | |
| Low Top Tenant & Top 10 Tenants Contributions | |
| High Distribution on Capital | |
| High Distribution Margin | |
| NAV per Unit Uptrend |
On 13 Apr 2021, FLCT has finally being included in STI, albeit there is no price hike since then. For this 1H, FLCT performance has improved as compared to the previous half-year despite the divestment of Sandstone Place and SA Portfolio. Its fundamentals remain solid as well as seen from the above table.
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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