- Main Sector(s): Office
- Country(s) with Assets: United States
- No. of Properties (exclude development/associate/fund): 15
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding: Below median for more than 20%
- REIT manager's shareholding: ± 10% from median
- Directors of REIT manager's shareholding: Above median for more than 20%
Lease Profile
- Occupancy: ± 5% from median
- WALE: Below median for more than 10%
- Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2023
- Weighted Average Land Lease Expiry: All properties are freehold
Debt Profile
- Gearing ratio: ± 10% from median
- Cost of debt: Above median for more than 20%
- Fixed rate debt %: Above median for more than 10%
- Unsecured debt %: All debts are unsecured debt.
- WADM: ± 10% from median
- Highest debt maturity within 5 years: ± 10% from median; Falls in 2025
- Interest coverage ratio: Above median for more than 10%
Diversification Profile
- Top geographical contribution: Below median for more than 20%
- Top property contribution: Below median for more than 20%
- Top 5 properties' contribution: ± 10% from median
- Top tenant contribution: Below median for more than 20%
- Top 10 tenants' contribution: Below median for more than 20%
Key Financial Metrics
- Property yield: Above median for more than 20%
- Management fees over distribution: Below median for more than 20%; $ 9.80 distribution for every dollar paid
- Distribution on capital: Above median for more than 20%
- Distribution margin: ± 10% from median
Trends
- Uptrend: DPU, Distribution Margin
- Slight Uptrend: Distribution on Capital
- Slight Downtrend: NAV per Unit, Property Yield
- Downtrend: Interest Coverage Ratio
Relative Valuation
- P/NAV: Below average for 1y; Average for 3y & 5y
- Dividend Yield: Above average for 1y; Average for 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| Well Spread Debt Maturity | Short WALE |
| 100% Freehold Properties | High Cost of Debt |
| High Fixed Rate Debt % | Interest Coverage Ratio Downtrend |
| 100% Unsecured Debt | |
| High Interest Coverage Ratio | |
| Low Top Geographical Contribution | |
| Low Top Property Contribution | |
| Low Top Tenant & Top 10 Tenants Contributions | |
| High Property Yield | |
| Competitive Management Fees | |
| High Distribution on Capital | |
| DPU Uptrend | |
| Distribution Margin Uptrend |
The upcoming 1H 2022 performance should be better due to the full half yearly contribution from Bridge Crossing and 105 Edgeview which were acquired in August 2021. At this moment, the in-place rent is 8.9% below asking rents, which provides an organic growth opportunity.
You could also refer below for more information:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive contents
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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