Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is high at 37.798%
- REIT manager's shareholding is high at 1.906%
- Directors of REIT manager's shareholding is low at 0.007%
Lease Profile
- Occupancy is slightly high at 96.8%
- WALE is long at 5.1 years
- Highest lease expiry within 5 years is high at 33.6% which falls in FY24/25 and beyond, without breakdown
- Weighted average land lease expiry is moderate at 62.01 years
Debt Profile
- Gearing ratio is moderate at 36.3%. Include perpetual securities, gearing is at 39.8%.
- Cost of debt is high at 3.18%
- Fixed rate debt % is high at 96%
- Unsecured debt % is slightly high at 84.6%
- WADM is long at 3.7 years
- Highest debt maturity within 5 years is low at 23% which falls in FY25/26
- Interest coverage ratio is low at 3 times
- Preferred/Perpetual Securities over Debts is moderate at 8.3%
Diversification Profile
- Top geographical contribution is high at 62.8%
- Top property contribution is high at 35.3%
- Top 5 properties contribution is high at 91.3%
- Top tenant contribution is high at 22.4%
- Top 10 tenants contribution is high at 59.1%
- Top 3 countries contribution is from Singapore, Australia and Malaysia which contribute more than 95% of GRI
Key Financial Metrics
- Property yield is slightly low at 4.7%
- Management fees over distribution is high at 17.7% in which unitholders receive S$ 5.65 for every dollar paid
- Distribution on capital is low at 2.9%
- Distribution margin is moderate at 48.2%
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 - Average for 1y, 3y and 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low Directors of REIT Manager's Shareholding |
| High REIT Sponsor's Shareholding | High Cost of Debt |
| High REIT Manager's Shareholding | Low Interest Coverage Ratio |
| Long WALE | High Top Geographical Contribution |
| High Fixed Rate Debt % | High Top Property & Top 5 Properties Contributions |
| Long WADM | High Top Tenant & Top 10 Tenants Contributions |
| Well Spread Debt Maturity | Non-Competitive Management Fees |
| Low Distribution on Capital | |
| DPU Downtrend | |
| NAV per Unit Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Property Yield Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
The gross revenue has dropped slightly as compared to the previous quarter but the NPI is similar. The COVID-19 restriction (stabilization phase from 27 Sep to 21 Nov) in Singapore is expected to continue to affect the performance. However, with the possible easing of restriction and border re-opening to more countries, performance should be improved moving forward.
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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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