SREITs Fundamental Review @ 24 September 2023

Basic Overview

* Extracted from SREITs Data - Overview Tab

** CapitaLand India Trust is Business Trust

Key Statistics

Items	Average	Median	Min	Max
Price/ NAV	0.74	0.71	0.1	1.59
Market Cap, S$ B	2.4	1.21	0.1	12.44
Dividend Yield - Retail	7.43%	7.93%	1.62%	13.07%
Dividend Yield - Office	15.77%	8.22%	5.65%	52.2%
Dividend Yield - Healthcare	7.8%	7.8%	3.96%	11.64%
Dividend Yield - Hospitality	6.63%	5.75%	4.39%	10.98%
Dividend Yield - Industrial	6.44%	6.58%	4.73%	7.87%
Dividend Yield - Logistics	9.3%	9.41%	5.4%	14.45%
Overall Dividend Yield	10.26%	7.73%	1.62%	52.2%

* SREITs in foreign currencies are converted to SGD for Market Cap 

** Dividend yields are based on REIT Major Sector

	Highest Div. Yield (TTM)	%	Lowest Div. Yield (TTM)	%
1	Manulife US REIT	52.2%	BHG Retail REIT	1.62%
2	PrimeUS REIT	42.23%	Parkway Life REIT	3.92%
3	Keppel Pacific Oak USREIT	24.56%	Frasers Hospitality Trusts	4.39%
4	Elite Commercial REIT	17.46%	Keppel DC REIT	4.73%
5	United Hampshire US REIT	14.45%	Mapletree Logistics Trust	5.4%

	Highest P/NAV	Time	Lowest P/NAV	Time
1	Parkway Life REIT	1.59	Manulife US REIT	0.1
2	Keppel DC REIT	1.55	Prime US REIT	0.17
3	Mapletree Industrial Trust	1.23	Lippo Malls Indonesia Retail Trust	0.2
4	CapitaLand Ascendas REIT	1.19	Keppel Pacific Oak US REIT	0.27
5	Mapletree Logistics Trust	1.18	ARA US Hospitality Trust	0.36

	Largest Market Cap	S$, B	Smallest Market Cap	S$, B
1	CapitaLand Integrated Commercial Trust	12.44	Manulife US REIT	0.1
2	CapitaLand Ascendas REIT	12.16	Lippo Malls Indonesia Retail Trust	0.12
3	Mapletree Logistics Trust	8.26	Elite Commercial REIT	0.19
4	Mapletree Pan Asia Commercial Trust	7.6	Prime US REIT	0.21
5	Mapletree Industrial Trust	6.46	ARA US Hospitality Trust	0.22

* SREITs in foreign currencies are converted to SGD for Market Cap

Lease Profile

Items	Unit	Average	Median	Min	Max
Committed Occupancy	%	95	96	81.4	100
Income Received in SGD/Major Currencies	%	78.3	100	0	100
Highest Lease Maturity in 5 Years	%	30.7	23.2	1.8	94.3
Weighted Average Lease Expiry, WALE	year	4.6	3.9	0.8	16.7
Weighted Average Land Lease Expiry	year	69.7	70.9	21.9	99

* Freehold or land lease tenure with more than 99 years is considered as 99 years in the Weighted Average Land Lease Expiry calculation.

• Committed occupancy ≥ 98.5%
• First REIT
• Lendlease Global Commercial REIT
• Parkway Life REIT
• Daiwa House Logistics Trust
• Frasers Centrepoint Trust
• Keppel DC REIT
• Committed occupancy ≤ 90%
• Lippo Malls Indonesia Retail Trust
• Manulife US REIT
• Prime US REIT
• IREIT Global
• 20 SREITs have 100% of income received in SGD/major currencies
• Income received in SGD/major currencies = 0%
• BHG Retail REIT
• CapitaLand China Trust
• CapitaLand India Trust
• EC World REIT
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Highest lease maturity within 5 years ≤ 15% in a single year
• Parkway Life REIT
• Far East Hospitality Trust
• First REIT
• Frasers Hospitality Trust
• United Hampshire US REIT
• Manulife US REIT
• Highest lease maturity within 5 years ≥ 50% in a single year (including those without breakdown) 
• Elite Commercial REIT
• ARA US Hospitality Trust
• EC World REIT
• Sasseur REIT
• CapitaLand Ascott Trust
• CDL Hospitality Trusts
• WALE ≥ 7 years
• Parkway Life REIT
• First REIT
• Frasers Hospitality Trust
• Far East Hospitality Trust
• United Hampshire US REIT
• WALE ≤ 2 years
• Sasseur REIT
• EC World REIT
• ARA US Hospitality Trust
• CapitaLand China Trust
• Frasers Centrepoint Trust
• 100% freehold or properties ≥ 99 years remaining land lease
• Digital Core REIT
• IREIT Global
• Keppel Pacific Oak US REIT
• Manulife US REIT
• Prime US REIT
• Weighted average land lease expiry ≤ 35 years
• BHG Retail REIT
• CapitaLand China Trust
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Sabana Industrial REIT
• EC World REIT

Debt Profile

Items	Unit	Average	Median	Min	Max
Interest Coverage Ratio	time	3.8	3.4	1.7	13.8
Cost of Debt	%	3.8	3.67	0.99	8.71
Fixed Debt over Total Debt	%	72.7	76	20	100
Unsecured Debt over Total Debt	%	64.4	90.4	0	100
Gearing Ratio	%	38.1	38.7	26.2	56.7
Hybrid Securities over Debts + Hybrids	%	5.5	0.1	0	33.7
Highest Debt Expiry in 5 Years	%	39.3	35.3	14.4	95.1
Weighted Average Debt Maturity, WADM	year	2.8	2.9	1	4.3

• Interest coverage ratio ≥ 6 times
• Parkway Life REIT
• Daiwa House Logistics Trust
• Frasers Logistics & Commercial Trust
• IREIT Global
• Keppel DC REIT
• Interest coverage ratio ≤ 2.25 times
• Lippo Malls Indonesia Retail Trust
• BHG Retail REIT
• Lendlease Global Commercial REIT
• Suntec REIT
• AIMS APAC REIT
• Cost of debt ≤ 2.5%
• Daiwa House Logistics Trust
• Parkway Life REIT
• IREIT Global
• Frasers Logistics & Commercial Trust
• CapitaLand Ascott Trust
• Mapletree Logistics Trust
• Cost of debt ≥ 5%
• Lippo Malls Indonesia Retail Trust
• CapitaLand India Trust
• EC World REIT
• Sasseur REIT
• BHG Retail REIT
• Elite Commercial REIT
• Fixed debt % ≥ 85%
• Daiwa House Logistics Trust
• IREIT Global
• Cromwell European REIT, EUR
• AIMS APAC REIT
• First REIT
• Paragon REIT
• Fixed debt % ≤ 50%
• EC World REIT
• Lippo Malls Indonesia Retail Trust
• BHG Retail REIT
• Far East Hospitality Trust
• CDL Hospitality Trusts
• 10 SREITs are having unsecured debt of 1000%; 8 SREITs are having unsecured debt of 0%.
• Gearing Ratio ≤ 32.5%
• Sasseur REIT
• Frasers Logistics & Commercial Trust
• Paragon REIT
• Far East Hospitality Trust
• Sabana Industrial REIT
• Gearing Ratio ≥ 42.5%
• Manulife US REIT
• Elite Commercial REIT
• Prime US REIT
• Suntec REIT
• Hybrid Securities over Debts + Hybrids ≥ 12.5%
• AIMS APAC REIT
• Lippo Malls Indonesia Retail Trust
• Lendlease Global Commercial REIT
• Paragon REIT
• ESR-LOGOS REIT
• 16 SREITs are having Hybrid Securities over Debts + Hybrids of 0%
• Highest debt maturity within 5 years ≤ 22.5% in a single year
• CapitaLand Ascendas REIT
• CapitaLand Integrated Commercial Trust
• Mapletree Logistics Trust
• Far East Hospitality Trust
• Highest debt maturity within 5 years ≥ 60% in a single year
• BHG Retail REIT
• IREIT Global
• ARA US Hospitality Trust
• Digital Core REIT
• EC World REIT
• Prime US REIT
• WADM ≥ 3.75 years
• CapitaLand Integrated Commercial Trust
• First REIT
• Keppel DC REIT
• CapitaLand China Trust
• Mapletree Logistics Trust
• WADM ≤1.5 years
• ARA US Hospitality Trust
• Lippo Malls Indonesia Retail Trust
• EC World REIT
• Elite Commercial REIT
• Prime US REIT

Diversification Profile

Items	Unit	Average	Median	Min	Max
Major Sector Contribution	%	83	93.3	36.7	100
Top Geographical Contribution	%	52.7	54.2	7.7	100
Top Property Contribution	%	22.8	19.5	4.3	61
Top 5 Properties' Contribution	%	59.3	59.2	15.1	100
Top Tenant Contribution	%	18.2	9.7	2.1	91.6
Top 10 Tenants' Contribution	%	48.5	35.6	13	100

• Major sector contribution ≤ 50%
• Frasers Logistics & Commercial Trust
• AIMS APAC REIT
• CapitaLand Ascendas REIT
• Cromwell European REIT
• 14 SREITs are having a major sector contribution of 100%
• Top geographical contribution ≤ 20%
• Cromwell European REIT
• Elite Commercial REIT
• CapitaLand Ascott Trust
• ARA US Hospitality Trust
• Top geographical contribution of 90%
• Far East Hospitality Trust
• Sabana Industrial REIT
• Frasers Centrepoint Trust
• EC World REIT
• CapitaLand Integrated Commercial Trust
• OUE Commercial REIT
• Top property contribution ≤ 7%
• CapitaLand Ascendas REIT
• Mapletree Industrial Trust
• Elite Commercial REIT
• ARA US Hospitality Trust
• Top property contribution ≥ 40%
• Lendlease Global Commercial REIT
• Paragon REIT
• BHG Retail REIT
• Suntec REIT
• Sasseur REIT
• Top 5 properties' contribution ≤ 25%
• CapitaLand Ascendas REIT
• Elite Commercial REIT
• Mapletree Logistics Trust
• Mapletree Industrial Trust
• ARA US Hospitality Trust
• Top 5 properties' contribution ≥ 90%
• Lendlease Global Commercial REIT
• Paragon REIT
• Sasseur REIT
• BHG Retail REIT
• Starhill Global REIT
• EC World REIT
• Top tenant contribution ≤ 3.5%
• Suntec REIT
• CapitaLand China Trust
• Paragon REIT
• Sasseur REIT
• CapitaLand Ascendas REIT
• Keppel PacIFic Oak US REIT
• Top tenant contribution ≥ 37.5%
• Elite Commercial REIT
• ARA US Hospitality Trust
• Parkway Life REIT
• First REIT
• Digital Core REIT
• Top 10 tenants' contribution ≤ 17.5%
• CapitaLand Ascott Trust
• CapitaLand China Trust
• Sasseur REIT
• Suntec REIT
• CapitaLand Ascendas REIT
• Top 10 tenants' contribution ≥ 95%
• ARA US Hospitality Trust
• Elite Commercial REIT
• First REIT
• Digital Core REIT
• EC World REIT

Key Financial Metrics

Items	Unit	Average	Median	Min	Max
Property Yield (Annualized)	%	5.5	5.2	3.5	9.4
Manager Management Fees over Operating Distributable Income	%	14.3	15.8	-79.2	38.3
Operating Distributable Income on Capital (Annualized)	%	3	3.2	-0.7	5.1
Operating Distributable Income Margin	%	40.5	41.6	-6.4	64.1
Operating Distribution Proportion	%	84	90.1	-125.1	100

• Property yield (annualized) ≥ 7.25%
• First REIT
• Elite Commercial REIT
• Sasseur REIT
• Lippo Malls Indonesia Retail Trust
• CapitaLand India Trust
• Property yield (annualized) ≤ 4%
• Suntec REIT
• Keppel REIT
• Far East Hospitality Trust
• BHG Retail REIT
• OUE Commercial REIT
• Management fees over operating distributable income ≤ 10.5%
• Cromwell European REIT
• Daiwa House Logistics Trust
• IREIT Global
• Elite Commercial REIT
• Management fees over operating distributable income ≥ 25%
• Suntec REIT
• Keppel REIT
• AIMS APAC REIT
• Digital Core REIT
• Operating distributable income on capital (annualized) ≥ 4.2%
• Sasseur REIT
• Keppel DC REIT
• First REIT
• Elite Commercial REIT
• Operating distributable income on capital (annualized) ≤ 2%
• Lippo Malls Indonesia Retail Trust
• BHG Retail REIT
• Suntec REIT
• Keppel REIT
• OUE Commercial REIT
• Operating distributable income margin ≥ 60%
• Sasseur REIT
• Keppel DC REIT
• Parkway Life REIT
• Far East Hospitality Trust
• Operating distributable income margin ≤ 27.5%
• Lippo Malls Indonesia Retail Trust
• BHG Retail REIT
• ARA US Hospitality Trust
• CapitaLand Ascott Trust
• CapitaLand China Trust
• Operating Distribution Proportion = 100%
• BHG Retail REIT
• EC World REIT
• Elite Commercial Trust
• Frasers Hospitality Trust
• IREIT Global
• Keppel Pacific Oak US REIT
• Parkway Life REIT
• Operating Distribution Proportion ≤ 75%
• Lippo Malls Indonesia Retail Trust
• Keppel REIT
• Manulife US REIT, USD
• Suntec REIT

Related Party Shareholding

Items	Unit	Average	Median	Min	Max
REIT Sponsor's Shareholding	%	27.17	25.86	0	56.5
REIT Manager's Shareholding	%	2.19	0.92	0	9.09
Directors of REIT Manager's Shareholding	%	4.37	0.1	0	57.73

* Include deemed interest

• REIT sponsor's shareholding ≥ 47.5%
• Sasseur REIT
• Mapletree Pan Asia Commercial Trust
• Far East Hospitality Trust
• IREIT Global
• OUE Commercial REIT
• REIT sponsor's shareholding ≤ 8%
• Suntec REIT
• Prime US REIT
• BHG Retail REIT
• United Hampshire US REIT
• AIMS APAC REIT
• Elite Commercial REIT
• REIT manager's shareholding ≥ 5%
• First REIT
• CDL Hospitality Trusts
• CapitaLand Ascott Trust
• CapitaLand China Trust
• Far East Hospitality Trust
• CapitaLand India Trust
• REIT manager's shareholding ≤ 0.25%
• OUE Commercial REIT
• Sabana Industrial REIT
• Suntec REIT
• CapitaLand Ascendas REIT
• Daiwa House Logistics Trust
• Mapletree Logistics Trust
• Directors of REIT manager's shareholding ≥ 10%
• Sasseur REIT
• EC World REIT
• Frasers Hospitality Trust
• Elite Commercial REIT
• AIMS APAC REIT
• Directors of REIT manager's shareholding ≤ 0.015%
• Lippo Malls Indonesia Retail Trust
• Starhill Global REIT
• Mapletree Logistics Trust
• CapitaLand Ascendas REIT
• OUE Commercial REIT

Trailing 12 Months Distribution Breakdown

* Extracted from SREITs Data - Div Breakdown Tab

Below is the list of notable components in the TTM distribution breakdown:

• Management Fees Paid in Units ≥ 15%
• Manulife US REIT
• Keppel REIT
• Lendlease Global Commercial REIT
• Digital Core REIT
• AIMS APAC REIT
• Income Support ≥ 50%
• Lippo Malls Indonesia Retail Trust
• Divestment Proceeds ≥ 5%
• ESR-LOGOS REIT
• Far East Hospitality Trust
• Suntec REIT
• Keppel REIT
• Release of Retention/Capital ≥ 100%
• Lippo Malls Indonesia Retail Trust
• Distribution to Perpetual Securities Holders ≥ 7.5%
• Lippo Malls Indonesia Retail Trust
• AIMS APAC REIT
• Lendlease Global Commercial REIT
• Paragon REIT
• ESR-LOGOS REIT

Dividend Yield & P/NAV

* Extracted from SREITs Data - Relative Tab

Below is the list of REITs with 3 out of 6 (or 2 out of 4 for newly listed) being +2SD Dividend Yield and -2SD P/NAV over the past 1 year, 3 years, or 5 years:

1. Cromwell European REIT
2. EC World REIT
3. Elite Commercial REIT
4. Keppel PacIFic Oak US REIT
5. Lendlease Global Commercial REIT
6. Manulife US REIT, USD
7. Mapletree Pan Asia Commercial Trust
8. OUE Commercial REIT
9. Prime US REIT

* MCFK counters are bolded

In September, SREITs witnessed a continued downward trend in their share prices, resulting in a deeper discount to their NAV. The median Price/NAV ratio now stands at a mere 0.71, with only 6 SREITs trading above 1. Additionally, the median dividend yield is an attractive 7.73%, with 9 SREITs offering yields above 10%.

Although there is no rate hike announced in the recent September FOMC meeting, the Fed has sent a higher-for-longer message. After this, Goldman Sachs pushes its forecast for Fed rate cut to Q4 2024, from the earlier forecast of 2Q 2024. It is expected that the cut would only be 50 basis points, instead of a 1% cut as estimated earlier. I guess, this REIT winter might be longer than many have expected initially. 

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

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*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 findings and should not be considered 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.