- Main Sector(s): Logistics & Retail
- Country(s) with Assets: Japan
- No. of Properties (exclude development/associate/fund): 14
Performance Highlight
- REIT sponsor's shareholding: Below median for more than 20%
- REIT manager's shareholding: 0%
- Directors of REIT manager's shareholding: Below median for more than 20%
Lease Profile
- Occupancy: ± 5% from median
- WALE: Above median for more than 20%
- Highest lease expiry within 5 years: Below median for more than 10%; Falls in 2024
- Weighted average land lease expiry: ± 10% from median
Debt Profile
- Gearing ratio: ± 10% from median (below median for more than 10% after repayment of consumption tax loan)
- Gearing ratio including perps: ± 10% from median (below median for more than 10% after repayment of consumption tax loan)
- Cost of debt: Below median for more than 20%
- Fixed rate debt %: 100%
- Unsecured debt %: 0%
- WADM: Above median for more than 10%
- Highest debt maturity within 5 years: ± 10% from median; Equally divided into 2024,2025 and 2026.
- Interest coverage ratio: Above median for more than 20%
Diversification Profile
- Top geographical contribution: ± 10% from median
- Top property contribution: Above median for more than 20%
- Top 5 properties' contribution: ± 10% from median
- Top tenant contribution: Above median for more than 20%
- Top 10 tenants' contribution: Above median for more than 20%
Key Financial Metrics
- Property yield: Above median for more than 10%
- Management fees over distribution: Below median for more than 20%; $10 distribution for every dollar paid
- Distribution on capital: ± 10% from median
- Distribution margin: ± 10% from median
Trends
- Slight Uptrend: Distribution on Capital, Distribution Margin
- Flat: DPU, Interest Coverage Ratio, Property Yield
- Slight Downtrend: NAV per Unit
Relative Valuation
- P/NAV: Below -1SD for 1y
- Dividend Yield: Above +2SD for 1y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Sponsor's Shareholding |
| High Occupancy | Low REIT Manager's Shareholding |
| Long WALE | Low Directors of REIT Manager's Shareholding |
| Well Spread Lease Expiry | 0% Unsecured Debt |
| Low Gearing Ratio (Post Consumption Tax Repayment) | High Top Property Contribution |
| Low Cost of Debt | High Top Tenant & Top 10 Tenants Contributions |
| 100% Fixed Rate Debt | |
| Long WADM | |
| High Interest Coverage Ratio | |
| High Property Yield | |
| Competitive Management Fees |
The performance beat the forecast slightly. 2 properties, namely DPL Sendai Port and DPL Koriyama sustained some damages due to an earthquake on 16 March, though, both properties remained in operation.
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 due to 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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