- Main Sector(s): Industrial
- Country(s) with Assets: United States & Canada
- No. of Properties (exclude development/associate/fund): 11
Key Indicators
Acquisition
- Distributable Income Breakdown:
- 80.2% from Operation
- 19.8% from Fees Payable/Paid in Units
- Distribution = 100% of Distributable Income
Related Parties Shareholding
- REIT Sponsor's Shareholding: Above median for more than 20%
- REIT Manager's Shareholding: Above median for more than 20%
- Directors of REIT Manager's Shareholding: 0%
Lease Profile
- Occupancy: ± 5% from median
- WALE: Above median for more than 10%
- Highest Lease Expiry within 5 Years: Above 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 20%
- Fixed Rate Debt %: ± 10% from median
- Unsecured Debt %: 100%
- WADM: Above median for more than 20%
- Highest Debt Maturity within 5 Years: Above median for more than 20%; Falls in 2026
- Interest Coverage Ratio: Above median for more than 20%
Diversification Profile
- Top Geographical Contribution: Below median for more than 20%
- Top Property Contribution: ± 10% from median
- Top 5 Properties' Contribution: Above 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: ± 10% from median
- Management Fees over Distribution: Above median for more than 20%; $5.05 distribution for every dollar paid
- Distribution on Capital: ± 10% from median
- Distribution Margin: Below median for more than 10%
Trends
- Flat - Occupancy
- Slight Downtrend: NAV per Unit, Property Yield
- Downtrend - DPU, Interest Coverage Ratio, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV: Below average for 1y; Below -1SD for 3y
- Dividend Yield: Above average for 1y; Above +1SD for 3y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| High REIT Manager's Shareholding | Concentrated Lease Expiry |
| High Occupancy | High Cost of Debt |
| Long WALE | Concentrated Debt Maturity |
| 100% Freehold Properties | High Top 5 Properties' Contribution |
| 100% Unsecured Debt | High Top Tenant & Top 10 Tenants' Contributions |
| Long WADM | Non Competitive Management Fees |
| High Interest Coverage Ratio | Low Distribution Margin |
| Low Top Geographical Contribution | DPU Downtrend |
| Interest Coverage Ratio Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
The performance has declined as compared to the previous quarter probably due to higher property expenses and finance expenses. The customer who filed for bankruptcy protection has vacated the Toronto DC effective 1 January 2023 while DCR executed a short-term lease agreement with a cloud service provider to cover half of the space. Moving forward, the contribution from the 25% interest in Digital Frankfurt should help to cushion the impact of the rising interest rate.
For more information, check out:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and details of Singapore REIT
REIT Review - List of previous REIT review 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: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.
No comments:
Post a Comment