Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 52.484%
- REIT manager's shareholding is high at 5.425%
- Directors of REIT manager's shareholding is high at 0.166%
Lease Profile
- WALE is long at 9.27 years
- Highest lease expiry within 5 years is low at 7.7% which falls in this year
- Weighted average land lease expiry is moderate at 61.58 years
Debt Profile
- Gearing ratio is high at 41.6%
- Cost of debt is low at 2%
- Fixed rate debt % is low at 54.6%
- All debts are unsecured debts
- WADM is short at 2.2 years
- Highest debt maturity within 5 years is low at 22.3% which falls in 2024
- Interest coverage ratio is low at 2.7 times
Diversification Profile
- All properties are located in Singapore
- Top property contribution is moderate at 18.6%
- Top 5 properties contribution is low at 55.4%
- Top tenant contribution is high at 15%
- Top 10 tenants contribution is high at 78.4%
Key Financial Metrics
- Property yield is low at 2.8%
- Management fees over distribution is high at 18.9% in which unitholders receive S$ 5.29 for every dollar paid
- Distribution on capital is low at 1.9%
- Distribution margin is high at 60.7%
- Include retention, management fees over distribution, distribution on capital and distribution margin is at 17.6% (high), 2.1% (low) and 65% (high) respectively.
Trends
- Downtrend - DPU, NAV per Unit, Interest Coverage Ratio, Property Yield, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV - Above +1SD for 1y; Above average for 3y and 5y
- Dividend Yield - Below average for 1y; Below -1SD for 3y and 5y
Author's Opinion
Favorable | Less Favorable |
---|---|
Diversified Sector | High Gearing Ratio |
High REIT Sponsor's Shareholding | Low Fixed Rate Debt % |
High REIT Manager's Shareholding | Short WADM |
High Directors of REIT Manager's Shareholding | Low Interest Coverage Ratio |
Long WALE | High Top Geographical Contribution |
No Major Lease Expiry within 5 Years | High Top Tenant & Top 10 Tenants Contributions |
Low Cost of Debt | Low Property Yield |
100% Unsecured Debt | Non-Competitive Management Fees |
Well Spread Debt Maturity | Low Distribution on Capital |
Low Top 5 Properties Contribution | DPU Downtrend |
High Distribution Margin | NAV per Unit Downtrend |
Interest Coverage Ratio Downtrend | |
Property Yield Downtrend | |
Distribution on Capital Downtrend | |
Distribution Margin Downtrend |
FEHT performance is supported by a high fixed rent rate as well as government contracts for isolation purposes and long-stay corporate contracts. With VTL open to more countries and an increase of daily travelers quota, it should gradually benefit the local hospitality sector. The current VTL quota is 4,000 travelers daily and set to increase to 6,000 when VTL to Malaysia is launched in the near term. For retention, there is a remaining S$ 3.5 million retentions left, equivalent to 0.177 cents.
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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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