- Main Sector(s): Office
- Country(s) with Assets: United States
- No. of Properties (exclude development/associate/fund): 14
Key Indicators
Performance Highlight
Rental Reversion
- 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: Below median for more than 5%
- WALE: ± 10% from median
- 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: ± 10% from median
- Cost of debt: Above median for more than 10%
- Fixed rate debt %: Above median for more than 10%
- Unsecured debt %: 0%
- 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 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: Below median for more than 10%
- Top tenant contribution: Below median for more than 20%
- Top 10 tenants' contribution: ± 10% from median
Key Financial Metrics
- Property yield: Above median for more than 20%
- Management fees over distribution: Below median for more than 20%; $9.62distribution for every dollar paid
- Distribution on capital: Above median for more than 20%
- Distribution margin: ± 10% from median
Trends
- Flat: DPU, NAV per Unit, Distribution Margin
- Downtrend: Occupancy, Interest Coverage Ratio, Property Yield, Distribution on Capital
Relative Valuation
- Current 52 Weeks Range: 17.5%
- P/NAV: Below -2SD for 1y, 3y & 5y
- Dividend Yield: Above +2SD for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| Well Spread Lease Expiry | Low REIT Manager's Shareholding |
| 100% freehold properties | Low Occupancy |
| High Fixed Rate Debt % | High Cost of Debt |
| High Interest Coverage Ratio | 0% Unsecured Debt |
| Low Top Geographical Contribution | Short WADM |
| Low Top Property & Top 5 Properties Contributions | Concentrated Debt Maturity |
| Low Top Tenant Contribution | Occupancy Downtrend |
| High Property Yield | Interest Coverage Ratio Downtrend |
| Competitive Management Fees | Property Yield Downtrend |
| High Distribution on Capital | Distribution on Capital Downtrend |
As compared to the previous quarter, despite a similar gross revenue, NPI and distributable income have declined by 4.7% and 5.8% respectively. From the presentation, the leasing volume for 3Q is close to combination of 1Q + 2Q, with 52% from new leases. If the leasing momentum could continue, then occupancy and performance should show improvement in the upcoming quarters.
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 content
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.
No comments:
Post a Comment