Highlights

REIT-TIREMENT

Author: Vince   |   Latest post: Wed, 7 Oct 2020, 9:34 AM

 

Singapore Industrial & Business Park Focused SREITs Comparison

Author:   |    Publish date:


Today, I have chosen to focus on these SREITs for their predominantly Singapore exposure in the industrial and business parks. Therefore, Cromwell European REIT and Frasers Logistics and Commercial Trust are excluded. Sabana REIT is also excluded due to potential merger. For mobile user, please view in landscape mode.

 

Name

AIMS APAC REIT (AAREIT)

Ascendas REIT (AREIT)

ESR-REIT (ESR)

Mapletree Industrial Trust (MIT)

Soilbuild Business Space REIT (SBREIT)

ES

Listed Date

19-Apr-2007

19-Nov-2002

25-Jul-2006

28-Jul-2005

16-Aug-2013

Dividend Frequency

Quarter

Semi-Annual

Quarter

Quarter

Quarter

Unit Price

$1.180

$3.220

$0.390

$3.230

$0.495

Dividend Yield

7.63%

4.58%

8.11%

3.71%

7.01%

Price / NAV

0.87

1.47

0.95

2.00

0.84

Market Cap

SGD 0.83 Billion

SGD 11.66 Billion

SGD 1.38 Billion

SGD 7.13 Billion

SGD 0.63 Billion

Related Parties Shareholding

REIT Sponsor

5.32%

19.15%

9.14%

29.15%

0.00%

REIT Manager

0.61%

2.64%

1.02%

0.68%

0.68%

Directors of REIT Manager

8.01%

0.00%

24.02%

0.25%

10.02%

Lease Profile

Committed Occupancy

93.6%

91.5%

91.1%

91.1%

89.5%

Weighted Average Lease Expiry, WALE

4.41 years

3.9 years

3.4 years

4.2 years

3.4 years

Highest Lease Expiry in 5 Years

26.2%

18.3%

23.4%

36.9%

20.2%

Number of Properties

24 units

197 units

36 units

114 units

14 units

Weighted Average Land Lease Expiry

41.92 years

52.84 years

28.82 years

46.83 years

46.39 years

Debt Profile

Gearing Ratio

35.4%

36.1%

41.8%

38.8%

36.9%

Interest Cover Ratio

3.8 times

4.2 times

3.4 times

7.2 times

3.6 times

Cost of Debt

3.3%

2.9%

3.5%

2.6%

3.1%

Fixed Rate Debt Proportion

81.1%

80.9%

88.3%

86.3%

80.4%

Unsecured Debt Proportion

26.4%

89.5%

100.0%

100.0%

59.6%

Weighted Average Debt Maturity, WADE

2.2 years

3.6 years

2.7 years

3.9 years

1.9 year

Highest Debt Maturity in 5 Years

28.9%

18.5%

32.7%

26.1%

37.7%

Diversification Profile

Top Sector Contribution

46.7%

42.5%

49.3%

88.2%

51.7%

Top Geographical Contribution

88.6%

73.4%

100.0%

94.5%

83.3%

Top Property Contribution

14.4%

4.7%

15.0%

10.9%

31.0%

Top Tenant Contribution

13.2%

4.2%

5.0%

8.4%

9.4%

Top 10 Tenants Contribution

50.2%

18.1%

30.6%

28.5%

43.5%

No. of Countries with Properties/ Investments

2 countries

4 countries

1 country

3 countries

2 countries

Key Financial Metrics

Property Yield

6.5%

6.1%

5.9%

7.0%

5.1%

Management Fees over Distribution

12.4%

12.1%

13.7%

13.2%

10.0%

Distribution on Capital

4.2%

4.2%

3.8%

5.2%

3.3%

Distribution Margin

48.5%

50.7%

40.9%

60.3%

47.9%

Distribution from Asset Disposal

0.0%

0.0%

9.4%

0.0%

0.0%

Distribution from Income Support

0.0%

1.8%

0.0%

0.0%

1.2%

Growth Trend for Past 5 Years

DPU

Downtrend

Slight Downtrend

Downtrend

Uptrend

Downtrend

NAV per Unit

Downtrend

Slight Uptrend

Downtrend

Uptrend

Downtrend

Interest Cover Ratio

Flat

Downtrend

Downtrend

Downtrend

Downtrend

Property Yield

Slight Downtrend

Slight Downtrend

Flat

Slight Downtrend

Downtrend

Distribution Margin

Slight Downtrend

Slight Uptrend

Downtrend

Flat

Downtrend

* Above information is extracted fr om SREITs Dashboard.

** Growth Trend for DPU is not adjusted for any equity fundraising.

 

Without assigning weightage, just consider favorable points will get:

1) Basic & Key Statistics - ESR & SBREIT

2) Related Parties Shareholding - AREIT, ESR & MIT

3) Lease Profile - AREIT

4) Debt Profile - MIT

5) Diversification - AREIT

6) Key Financial Metrics - MIT

7) Growth Trend - MIT

8) Overall - AREIT, followed by MIT

 

For relative valuation:

Name

AIMS APAC REIT (AAREIT)

Ascendas REIT (AREIT)

ESR-REIT (ESR)

Mapletree Industrial Trust (MIT)

Soilbuild Business Space REIT (SBREIT)

52 Weeks

High

$1.480

$3.650

$0.560

$3.360

$0.540

Low

$0.900

$2.220

$0.240

$1.860

$0.199

Current

$1.180

$3.220

$0.390

$3.230

$0.495

Average Yield

High

8.81%

7.18%

8.51%

7.41%

9.90%

Low

5.87%

4.68%

4.03%

4.21%

6.41%

Average

7.50%

6.01%

7.29%

6.18%

8.15%

Current

7.63%

4.58%

8.11%

3.71%

7.01%

Average Price/NAV

High

1.10

1.45

1.23

1.67

1.06

Low

0.87

1.10

0.78

1.13

0.65

Average

0.99

1.26

0.96

1.34

0.94

Current

0.87

1.47

0.95

2.00

0.84

ESR price is more favorable in terms of relative valuation, followed by AAREIT.

 

Above is just a quick comparison, you could refer more detail on the individual analysis below:

AIMS APAC REIT Analysis @ 9 August 2020

Ascendas REIT Analysis @ 10 August 2020

ESR-REIT (Previously Cambridge Industrial Trust) Analysis @ 19 July 2020

Mapletree Industrial Trust Analysis @ 30 July 2020

Soilbuild Business Space REIT Analysis @ 17 July 2020

 

For more information, you could refer:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

REIT Investing Community - Facebook Group where members share and discuss REIT topic

 

*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee the accuracy, completeness, and reliability. It should not be taken as financial advice or statement of fact. I shall not be held liable for errors, omissions as well as loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

 

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