Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 32.59%
- REIT manager's shareholding is high at 3.03%
- Directors of REIT manager's shareholding is high at 0.22%
Lease Profile
- Occupancy is slightly high at 95.4%
- WALE is short at 2.4 years
- Highest lease expiry within 5 years is moderate at 25.9% which falls in FY22/23
- Weighted average land lease expiry is slightly long at 75.97 years
Debt Profile
- Gearing ratio is slightly low at 34.2%
- Cost of debt is moderate at 2.44%
- Fixed rate debt % is moderate at 75.7%
- All debts are unsecured debt
- WADM is long at 4 years
- Highest debt maturity within 5 years is low at 24% which falls in FY24/25
- Interest coverage ratio is high at 4.8 times
Diversification Profile
- All of its properties are located in Singapore
- Top property contribution is high at 44.7%
- Top 5 properties contribution is high at 100%
- Top tenant contribution is moderate at 10.7%
- Top 10 tenants contribution is low at 28.5%
Key Financial Metrics
- Property yield is low at 4.5%
- Management fees over distribution is low at 11.9% in which unitholders receive S$ 8.40 for every dollar paid
- Distribution on capital is slightly high at 3.6%
- Distribution margin is high at 65.7%
- Including retention, management fees over distribution, distribution on capital and distribution margin would be 11.4% (low), 3.8% (high) and 69% (high) respectively.
Trends
- Uptrend - DPU(include retention), NAV per Unit
- Flat - Distribution Margin (include retention)
- Downtrend - Interest Coverage Ratio, Property Yield, Distribution on Capital
Relative Valuation
- P/NAV - Higher than average for 1y, 3y and 5y
- Dividend Yield - Higher than average for 1y; Average for 3y; Lower than average for 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Short WALE |
| High REIT Sponsor's Shareholding | High Top Geographical Contribution |
| High REIT Manager's Shareholding | High Top Property & Top 5 Properties Contributions |
| High Directors of REIT Manager's Shareholding | Low Property Yield |
| 100% Unsecured Debt | Interest Coverage Ratio Downtrend |
| Long WADM | Property Yield Downtrend |
| Well Spread Debt Maturity | Distribution on Capital Downtrend |
| High Interest Coverage Ratio | |
| Low Top 10 Tenants Contribution | |
| Competitive Management Fees | |
| High Distribution on Capital (Include Retention) | |
| DPU Uptrend (Include Retention) | |
| NAV per Unit |
MCT fundamentals and performance remain resilient, albeit this quarter decreased as compared to the previous quarters. The drop is possibly due to the rental rebates given to eligible tenants due to phase 2 and phase 3 heightened alert. For retention, there is a remaining S$ 15.7 million retention left.
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SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
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*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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