Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Despite a slight YoY decline in gross revenue, NPI remained stable due to lower property expenses. Distribution from investments increased following the acquisition of an additional interest in NEX, leading to a YoY increase in distribution to unitholders. However, due to an enlarged unitholder base, DPU remained relatively unchanged despite a higher management fee being paid in units.
Rental Reversion
Retail portfolio rental reversion for FY24 stands at 7.7%, with Central Plaza reporting a higher rental reversion of 9.3%.
Shopper Traffic & Tenant Sales
Both shopper traffic and tenant sales have improved YoY. While shopper traffic is still below pre-COVID levels, tenant sales have surpassed pre-COVID levels.
Asset Enhancement Initiative
The AEI for Tampines 1 was completed in August.
Related Parties Shareholding
- REIT Sponsor's Shareholding: Favorable
- REIT Manager's Shareholding: Favorable
- Directors of REIT Manager's Shareholding: Less Favorable
Lease Profile
- Occupancy: Favorable
- WALE: Less Favorable
- Highest Lease Expiry in 4 Years: Less Favorable
- Weighted Average Land Lease Expiry: Moderate
Debt Profile
- Gearing Ratio: Moderate
- Cost of Debt: Moderate
- Fixed Rate Debt %: Moderate
- Unsecured Debt %: Moderate
- WADM: Moderate
- Highest Debt Maturity in 4 Years: Favorable
- Interest Coverage Ratio: Moderate
Diversification Profile
- Top Geographical Contribution: Less Favorable
- Top Property Contribution: Less Favorable
- Top 5 Properties' Contribution: Less Favorable
- Top Tenant Contribution: Favorable
- Top 10 Tenants' Contribution: Favorable
Key Financial Metrics
- Property Yield: Moderate
- Management Fees over Operating Distributable Income: Less Favorable
- Operating Distributable Income on Capital: Moderate
- Operating Distributable Income Margin: Favorable
- Operating Distribution Proportion: Less Moderate
DPU Breakdown
- TTM Distribution Breakdown:
- 87.5% from Operation
- 11.9% from Management Fees Paid in Units
- 0.5% from Retention Release
Trends (Up to 10 Years)
- Uptrend: NAV per Unit, Committed Occupancy
- Flat: DPU from Operation
- Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion
Price Range & Relative Valuation Metrics
- Dividend Yield: Average for 1y, 3y, 5y & 10y
- P/NAV: Average for 1y, 3y, 5y & 10y
Author's Opinion
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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.
hi Vince, Great article & many thanks for your detailed analysis of FCT.
ReplyDeleteI appreciate your format of presentation which captured the key metrics of the Reit. You help me to realize the importance of focusing on Operating DPU available for distribution ! I especially like the visuals :)
regards, BK.
Hi BK, thanks for your kind words. Yeap, I feel DPU from ops is really important metrics as this is the real DPU. FCT increased the management fees paid in units to maintain a similar YoY DPU in the the past 12 months. Hopefully, things will improved and this can be DPU from ops proportion can go back to a healthy level.
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