Singapore REITs – Monthly Analysis – The Property Chronicle
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Singapore REITs – Monthly Analysis

The Fund Manager

* FTSE ST REIT Index up 745.45  to 823.64 (+10.49%) on the month update.

*  Index has rebounded c41% as of June 12 closed after hitting the recent high of 878 (c.50% rebound from the bottom).

* Yield spread (reference to 10-year Singapore government bond of 0.981%) has tightened from 6.97% to 5,47%. 

* The risk premium is still attractive to accumulate Singapore REITs in stages to lock in the current price and long-term yield after the recovery.

* Technically the REIT Index is currently on uptrend and have further upside if the 200D SMA resistance is overcome. 

* REIT sector outperforms the financial sector and Singapore Straits Times Index (STI) since the bottom on Mar 23, 2020.

Technical Analysis 

If the REIT index can clear the 200D SMA resistance, the REIT index will enter into a full Bull territory and have a chance to break new high. Current bullish momentum is very strong. 

Short term direction: Up.

Most Overvalued REITs 

  • Keppel DC REIT (Price/NAV = 2.15)
  • Parkway Life (Price/NAV = 1.74)
  • Mapletree Industrial Trust (Price/NAV = 1.65)
  • Mapletree Logistic Trust (Price/NAV = 1.56) 
  • Ascendas REIT (Price/NAV = 1.44).

Most Undervalued REITs 

  • Eagle Hospitality Trust* (Price/NAV =0.15),
  • Lippo Malls Indonesia Retail Trust (Price/NAV = 0.51)
  • ARA Hospitality Trust (Price/NAV = 0.48)
  • Far East HT (Price/NAV = 0.61) 
  • Starhill Global (Price/NAV = 0.61)

 The Highest Distribution Yield (TTM) 

  • Lippo Malls Indonesia Retail Trust (12.59%)
  • First REIT (11.87%)
  • ARA Hospitality Trust (10.14%) 
  • Soilbuild Business Trust (10.14%) 
  • ARA Logos Logistic Trust (9.45%). 

[Reminder that these yield numbers are based on current prices taking into account delayed distribution/dividend cuts due to COVID-19. Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.]

 The Highest Gearing Ratio REITs 

  • Lippo Malls Trust (42.1%)
  • ESR REIT (41.7%)
  • ARA Hospitality Trust (41.0%) 
  • ARA Logos Log Trust (40.8%) (previously Cache Log Trust) 
  • OUE Commercial REIT (40.2%)

Top 5 REITs with biggest market capitalisation 

  • Ascendas REIT ($11.2B)
  • Mapletree Logistics Trust ($7.2B)
  • CapitaMall Trust ($7.6B)
  • Mapletree Commercial Trust ($6.8B) 
  • Capitaland Commercial Trust ($6.8B)

The bottom 3 REITs with smallest market capitalisation 

  • Eagle Hospitality Trust ($119M) 
  • ARA Hospitality Trust ($235.4M)
  • Elite Commercial REIT ($234M)

[*Eagle Hospitality Trust is currently suspended] 

Fundamental Analysis of 40 Singapore REITs

The chart below is the compilation of 41 REITs in Singapore with colour coding for the Distribution Yield, Gearing Ratio and Price to NAV Ratio. This gives investors a quick glance of which REITs are attractive enough to have an in-depth analysis. [ DPU Yield for Elite Commercial REIT, United Hampshire REIT are projections based on the IPO prospectus.] 

The Fund Manager

About Kenny Loh

Kenny Loh

Kenny has been investing in Singapore REITs for about 8 years. He is one of the pioneers of financial bloggers in Singapore. Since 2009, Kenny has been blogging at, reaching 19 thousand unique monthly visitors from 110 countries now. Over the years, Kenny has conducted many seminars and benefited thousands of investors by collaborating with SGX, SIAS, CIMB, RHB, Maybank Kim Eng, CMC Market, City Index, ShareInvestor, InvestingNote, iFAST, Aberdeen Standard Asset Management, Natixis Global Asset Management, Wealth Academy Investor Inner Circle (WAIIC) and Online Traders Club Singapore (OTCS). Kenny has since taught hundreds of attendees, from students, fund managers and businessmen to retirees, teachers, and even fashion designers.

Articles by Kenny Loh

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