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

The Fund Manager

  • FTSE ST REIT Index up 823.64 to 837.43 (+1.67%) 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 0.896%) has tightened from 5.47% to 4.414% due to cut in dividend yield. 
  • 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 until the breakout either break above the 200D SMA or break below the 50D SMA.

Technical Analysis 

Currently the REIT index is currently trading on sideway consolidation, sandwiched between 200D SMA and 50D SMA.  Immediate support at about 825 (Gap support) followed by 50D SMA. Immediate resistance at 200D SMA.

Short term direction: Sideway.

Most Overvalued REITs  

  • Keppel DC REIT (Price/NAV = 2.30)
  • Mapletree Industrial Trust (Price/NAV = 1.83)
  • Parkway Life (Price/NAV = 1.73)
  • Mapletree Logistic Trust (Price/NAV = 1.67) 
  • Ascendas REIT (Price/NAV = 1.51).

Most Undervalued REITs 

  • Eagle Hospitality Trust* (Price/NAV =0.15)
  • ARA Hospitality Trust (Price/NAV = 0.45)
  • Lippo Malls Indonesia Retail Trust (Price/NAV = 0.49)
  • Starhill Global (Price/NAV = 0.60)
  • Far East HT (Price/NAV = 0.61) 

[*Eagle Hospitality Trust is currently suspended]

 The Highest Distribution Yield (TTM

  • Lippo Malls Indonesia Retail Trust (8.70%)
  • First REIT (8.50%)
  • Lendlease REIT (7.85%)
  • ARA Hospitality Trust (7.31%) 
  • Cromwell European REIT (7.00%)

[ 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%) 
  • OUE Commercial REIT (40.2%)

    Top 5 REITs with biggest market capitalisation 

  • Ascendas REIT ($11.8B)
  • Mapletree Logistics Trust ($7.7B)
  • CapitaMall Trust ($7.4B)
  • Capitaland Commercial Trust ($6.8B)
  • Mapletree Commercial Trust ($6.5B) 

The bottom 3 REITs with smallest market capitalisation 

  • Eagle Hospitality Trust ($119M) 
  • ARA Hospitality Trust ($221M)
  • Elite Commercial REIT ($228M)

[*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 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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