Basic Profile & Key Statistics
- Main Sector(s): Office
- Country(s) with Assets: United States
- No. of Properties (exclude development/associate/fund): 12
Key Indicators
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: Below median for more than 10%
Lease Profile
- Occupancy: Below median for more than 5%
- WALE: Above median for more than 20%
- Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2025
- Weighted average land lease expiry: 100% freehold properties
Debt Profile
- Gearing ratio: Above median for more than 10%
- Cost of debt: Above median for more than 10%
- Fixed rate debt %: Above median for more than 10%
- Unsecured debt %: Below median for more than 10%
- WADM: Below median for more than 10%
- Highest debt maturity within 5 years: Below median for more than 10%; Falls in 2026
- Interest coverage ratio: Below 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 10%
Key Financial Metrics
- Property yield: ± 10% from median
- Management fees over distribution: Below median for more than 20%; $10 distribution for every dollar paid
- Distribution on capital: Above median for more than 10%
- Distribution margin: ± 10% from median
Trends
- Slight Downtrend: Property Yield
- Downtrend: DPU, NAV per Unit, Occupancy, Interest Coverage Ratio, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV - Below -1SD for 1y, 3y & 5y
- Dividend Yield - Above +2SD for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Long WALE | Low REIT Sponsor's Shareholding |
| Well Spread Lease Expiry | Low Directors of REIT Manager's Shareholding |
| 100% freehold properties | Low Occupancy |
| High Fixed Rate Debt % | High Gearing Ratio |
| Well Spread Debt Maturity | High Cost of Debt |
| Low Top Geographical Contribution | Low Unsecured Debt % |
| Low Top Property Contribution | Short WADM |
| Low Top Tenant & Top 10 Tenants Contributions | Low Interest Coverage Ratio |
| Competitive Management Fees | DPU Downtrend |
| High Distribution on Capital | NAV per Unit Downtrend |
| Occupancy Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
Despite improvement for distributable income, DPU has declined slightly due to enlarge unitholder base. Occupancy has also declined to 90%. From the presentation, the manager mentioned about the hotelisation of office could be a new normal where MUST would partner with flex operators and shortlist assets for these.
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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