- Main Sector(s): Office
- Country(s) with Assets: England, Scotland & Wales
- No. of Properties (exclude development/associate/fund): 155
Key Indicators
Asset Enhancement Initiative
- REIT sponsor's shareholding: Below median for more than 20%
- REIT manager's shareholding: Below median for more than 20%
- Directors of REIT manager's shareholding: Above 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 20%; Falls in 2023
- Weighted average land lease expiry: Majorities are freehold properties with some longer than 99 years remaining land tenure
Debt Profile
- Gearing ratio: Above median for more than 10%
- Cost of debt: ± 10% from median
- Fixed rate debt %: Below median for more than 10%
- Unsecured debt %: 0% unsecured debt
- WADM: Below median for more than 20%
- Highest debt maturity within 5 years: Above median for more than 20%; Falls in 2024
- Interest coverage ratio: Above median for more than 20%
Diversification Profile
- Top geographical contribution: Below median for more than 20%
- Top property contribution: Below median for more than 20%
- Top 5 properties' contribution: Below median for more than 20%
- 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 20%
- Management fees over distribution: Below median for more than 20%; $10 distribution for every dollar paid
- Distribution on capital: Above median for more than 20%
- Distribution margin: Above median for more than 20%
Trends
- Uptrend: DPU
- Flat: NAV per Unit, Occupancy
- Slight Downtrend: Property Yield, Distribution Margin
- Downtrend: Interest Coverage Ratio, Distribution on Capital
Relative Valuation
- P/NAV: Below -1SD for 1y & 3y
- Dividend Yield: Above +2SD for 1y & 3y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| High Occupancy | Low REIT Manager's Shareholding |
| Long WALE | High Gearing Ratio |
| No Major Lease Expiry within 5 Years | Low Fixed Rate Debt % |
| Almost 100% Freehold Properties | 0% Unsecured Debt |
| High Interest Coverage Ratio | Short WADM |
| Low Top Geographical Contribution | Concentrated Debt Maturity |
| Low Top Property & Top 5 Properties Contributions | High Top Tenant & Top 10 Tenants Contributions |
| High Property Yield | Interest Coverage Ratio Downtrend |
| Competitive Management Fees | Distribution on Capital Downtrend |
| High Distribution on Capital | |
| High Distribution Margin | |
| DPU Uptrend |
The distribution and DPU are lower than previous 6 months due to management fees are being paid in 100% cash. Let's see would it be a norm moving forward.
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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