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

The Fund Manager

  • FTSE ST REIT Index has little changes from 837.43 to 835.40 (-0.35%) on the month update.
  • REIT Index has rebounded c43% as of July 12 from the bottom on Mar 23, 2020.
  • Yield spread (reference to 10-year Singapore government bond of 0.895%) has has increased from 4.414% to 5.665%. 
  • 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 trading on sideway consolidation with low volatility until the breakout either above 860 resistance and 800 support. Current macro factors such as low interest rate environment and recovery of global economic support the bullish breakout.

Technical Analysis 

Currently the REIT index is currently trading on sideway consolidation, sandwiched between 800 support and 860 resistance. There is a Bollinger Band Squeeze with very tight range and low volatility on FTSE ST REIT Index. The index can start big move in either direction.

Short term direction: Sideway.

Most Overvalued REITs  

  • Keppel DC REIT (Price/NAV = 2.50)
  • Mapletree Industrial Trust (Price/NAV = 1.84)
  • Parkway Life (Price/NAV = 1.82)
  • Mapletree Logistic Trust (Price/NAV = 1.67) 
  • Ascendas REIT (Price/NAV = 1.62).

Most Undervalued REITs 

  • Eagle Hospitality Trust* (Price/NAV =0.17)
  • ARA Hospitality Trust (Price/NAV = 0.44)
  • Lippo Malls Indonesia Retail Trust (Price/NAV = 0.44)
  • Starhill Global (Price/NAV = 0.55)
  • Far East HT (Price/NAV = 0.58) 

[*Eagle Hospitality Trust is currently suspended]

 The Highest Distribution Yield (TTM

  • First REIT (11.09%)
  • Lippo Malls Indonesia Retail Trust (10.83%)
  • Prime US REIT (8.66%)
  • Cromwell European REIT (8.59%)
  • Keppel Pacific Oak US REIT (8.49%)

[ 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 

  • ARA Hospitality Trust (42.5%) 
  • ESR REIT (41.8%)
  • Suntec REIT (41.3%)
  • ARA Logos Log Trust (40.4%) 
  • OUE Commercial REIT (40.1%)

[ Singapore REIT has a gearing limit of 50%.]

    Top 5 REITs with biggest market capitalisation 

  • Ascendas REIT (S$12.5)
  • Mapletree Logistics Trust (S$8.1B)
  • CapitaMall Trust (S$6.9B)
  • Capitaland Commercial Trust ($6.3B)
  • Mapletree Commercial Trust ($6.3B) 

The bottom 3 REITs with smallest market capitalisation 

  • Eagle Hospitality Trust (S$119M) 
  • BHG REIT (S$290M)
  • ARA Hospitality Trust ($264M)

[*Eagle Hospitality Trust is currently suspended] 


Fundamental Analysis of 41 Singapore REITs






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 http://mystocksinvesting.com, 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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