- Main Sector(s): Office
- Country(s) with Assets: United States
- No. of Properties (exclude development/associate/fund): 14
Key Indicators
Rental Reversion
Related Parties Shareholding
- REIT Sponsor's Shareholding: Below median by 20% or more
- REIT Manager's Shareholding: Below median by 20% or more
- Directors of REIT Manager's Shareholding: Above median by 20% or more
Lease Profile
- Occupancy: Below median by 5% or more
- WALE: ± 10% from median
- Highest Lease Expiry within 5 Years: Below median by 10% or more; Falls in 2025
- Weighted Average Land Lease Expiry: 100% freehold properties
Debt Profile
- Gearing Ratio: Above median by 10% or more
- Cost of Debt: ± 10% from median
- Fixed Rate Debt %: ± 10% from median
- Unsecured Debt %: 0%
- WADM: Below median by 20% or more
- Highest Debt Maturity within 5 Years: Above median by 20% or more; Falls in 2024
- Interest Coverage Ratio: ± 10% from median
Diversification Profile
- Top Geographical Contribution: Below median by 20% or more
- Top Property Contribution: Below median by 20% or more
- Top 5 Properties' Contribution: Below median by 10% or more
- Top Tenant Contribution: Below median by 20% or more
- Top 10 Tenants' Contribution: Above median by 10% or more
Key Financial Metrics
- Property Yield: Above median by 10% or more
- Management Fees over Operating Distributable Income: Below median by 20% or more; $9.17 distribution for every dollar paid
- Operating Distributable Income on Capital: Above median by 20% or more
- Operating Distributable Income Margin: ± 10% from median
- Operating Distribution Proportion: ± 5% from median
- Distributable Income Breakdown:
- 93.5% from Operation
- 6.4% from Management Fees Paid in Units
- 0.1% from Release of Retention/Capital
Trends
- Slight Downtrend: NAV per Unit
- Downtrend: DPU from Operation, Occupancy, Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
- P/NAV: Below -1SD for 1y; Below -2SD for 3y & 5y
- Dividend Yield: Above +2SD for 1y, 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Directors of REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| Well Spread Lease Expiry | Low REIT Manager's Shareholding |
| 100% Freehold Properties | Low Occupancy |
| Low Top Geographical Contribution | High Gearing Ratio |
| Low Top Property & Top 5 Properties' Contributions | 0% Unsecured Debt |
| Low Top Tenant Contribution | Short WADM |
| High Property Yield | Concentrated Debt Maturity |
| Competitive Management Fees | High Top 10 Tenants' Contribution: |
| High Operating Distributable Income on Capital | DPU from Operation Downtrend |
| Occupancy Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Property Yield Downtrend | |
| Operating Distributable Income on Capital Downtrend | |
| Operating Distributable Income Margin Downtrend |
Performance remains similar as compared to the previous quarter. Despite positive rental reversion over the past 11 consecutive quarters until 4Q 2022, the declining occupancy rate (since IPO) continues to impact the performance. In terms of debt, the process of extending the US$ 200m Term Loan 1, which was due in July, is currently ongoing. Currently, fixed-rate debt accounts for 79% of total debt, slightly higher than the median level for SREITs. In a move to avoid share dilution, the manager has elected to receive 100% base fee in cash for 2023, although this may result in a lower DPU.
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