- Main Sector(s): Logistics
- Country(s) with Assets: Singapore, China, Hong Kong, Japan, South Korea, Australia, Malaysia, Vietnam & India
- No. of Properties (exclude development/associate/fund): 189
Key Indicators
Related Parties Shareholding
- REIT Sponsor's Shareholding: Above median by 20% or more
- REIT Manager's Shareholding: Below median by 20% or more
- Directors of REIT Manager's Shareholding: Below median by 20% or more
Lease Profile
- Committed Occupancy: ± 5% from median
- Income in SGD/Major Currencies: Below median by 20% or more
- WALE: Below median by 20% or more
- Highest Lease Expiry within 5 Years: Above median by 20% or more; Falls in FY24/25
- Weighted Average Land Lease Expiry: Below median by 20% or more
Debt Profile
- Gearing Ratio: ± 10% from median
- Gearing including Perps: ± 10% from median
- Cost of Debt: Below median by 20% or more
- Fixed Rate Debt %: ± 10% from median
- Unsecured Debt %: ± 5% from median
- WADM: Above median by 20% or more
- Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY27/28
- 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 20% or more
- Top Tenant Contribution: Below median by 20% or more
- Top 10 Tenants' Contribution: Below median by 20% or more
Key Financial Metrics
- Property Yield: ± 10% from median
- Management Fees over Operating Distributable Income: Above median by 20% or more; $4.10 distribution for every dollar paid
- Operating Distributable Income on Capital: ± 10% from median
- Operating Distributable Income Margin: Above median by 10% or more
- Operating Distribution Proportion: Below median by 5% or more
- TTM DPU Breakdown:
- 83.2% from Operation
- 12.1% from Management Fees Paid in Units
- 0.1% from Income Support
- 4.6% from Proceeds from Divestment
Trends
- Uptrend: NAV per Unit
- Slight Uptrend: DPU from Operation
- Flat: Committed Occupancy
- Downtrend: Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
- Dividend Yield: Above +2SD for 1y; Above +1SD fr 3y & 5y
- P/NAV: Below -2SD for 1y; Below -1SD fr 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Sponsor's Shareholding | Low Directors of REIT Manager's Shareholding |
| Low Cost of Debt | Low Income in SGD/Major Currencies |
| Long WADM | Short WALE |
| Well Spread Debt Maturity | Concentrated Lease Expiry |
| Low Top Geographical Contribution | Short Weighted Average Land Lease Expiry |
| Low Top Property & Top 5 Properties' Contributions | Non Competitive Management Fees |
| Low Top Tenant & Top 10 Tenants' Contributions | Low Operating Distribution Proportion |
| High Operating Distributable Income Margin | Interest Coverage Ratio Downtrend |
| NAV per Unit Uptrend | Property Yield Downtrend |
| Operating Distributable Income on Capital Downtrend | |
| Operating Distributable Income Margin Downtrend |
In comparison to the prior quarter, there has been an improvement in both gross revenue and NPI. However, despite the NPI improvement and similar borrowing costs and divestment proceeds, the distributable income from operations (after excluding management fees payable in units and divestment proceeds) has experienced a decline of approximately 12.8%. The management fees payable in units for this quarter have surged to $22.371 million, which is more than double the $10.17 million from the previous quarter, albeit it is a norm that the amount is always higher in fiscal 2Q. Again, the absence of a detailed breakdown for the "adjustment for net effect of non-tax deductible items and other adjustments" in the quarterly financial statements (NOTE A in the distribution statement) makes it challenging to fully understand this decline.
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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.
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