- Main Sector(s): Office
- Country(s) with Assets: United States
- No. of Properties (exclude development/associate/fund): 14
Key Indicators
Rental Reversion
- Distributable Income Breakdown:
- 91.7% from Operation
- 0.1% from Release of Retention/Capital
- 8.2% from Fees Payable/Paid in Units
- Distribution = 100% of Distributable Income
Related Parties Shareholding
- 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: Above median for more than 10%
- Cost of Debt: ± 10% from median
- Fixed Rate Debt %: ± 10% from median
- 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 10%
- Management Fees over Distribution: Below median for more than 20%; $9.80 distribution for every dollar paid
- Distribution on Capital: Above median for more than 20%
- Distribution Margin: ± 10% from median
Trends
- Flat: NAV per Unit
- Slight Downtrend: DPU, Distribution Margin
- Downtrend: Occupancy, Interest Coverage Ratio, Property Yield, Distribution on Capital
Relative Valuation
- P/NAV: Below -1SD for 1y; Below -2SD for 3y & 5y
- Dividend Yield: Above +1SD for 1y; Above +2SD for 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 Interest Coverage Ratio | High Gearing Ratio |
| Low Top Geographical Contribution | 0% Unsecured Debt |
| Low Top Property & Top 5 Properties' Contributions | Short WADM |
| Low Top Tenant Contribution | Concentrated Debt Maturity |
| High Property Yield | Occupancy Downtrend |
| Competitive Management Fees | Interest Coverage Ratio Downtrend |
| High Distribution on Capital | Property Yield Downtrend |
| Distribution on Capital Downtrend |
Compared to the previous half-yearly period, the performance has declined due to increases in both operating expenses and interest expenses. It is encouraging to note that PRIME achieved positive rental reversion for 11 consecutive quarters, however, the occupancy rate remains sluggish.
From the presentation, it was mentioned that the work-from-home trend appears to be slowly declining. This could potentially have a positive impact on occupancy rates in the near future, as people start to return to the office and businesses resume normal operations. It will be interesting to see how this trend develops and whether it leads to improved performance in the coming months.
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