Basic Profile & Key Statistics
Performance Review
Related Parties Shareholding
- REIT sponsor's shareholding is high at 44.63%
- REIT manager's shareholding is low at 0.74%
- Directors of REIT manager's shareholding are high at 44.8%
Lease Profile
- Occupancy is high at 99.3%
- All income is received in RMB
- WALE is short at 3.4 years
- Highest lease expiry within 5 years is high at 75.4% which falls in 2024 and beyond, with more than 70% falls in 2024.
- Weighted average land lease expiry is short at 37 years
Debt Profile
- Gearing ratio is moderate at 38.1%
- Cost of debt is high at 4.3%
- Fixed rate debt % is low at 61.5%
- All debts are secured debt
- WADM is low at 1.6 years
- Highest debt maturity within 5 years is high at 85.3% which falls in 2022
- Interest coverage ratio is low at 2.6 times
Diversification Profile
- Top geographical contribution is high at 98.5%
- Top property contribution is high at 27.3%
- Top 5 properties contribution is high at 87.6%
- Top tenant contribution is high at 36.4%
- Top 10 tenants contribution is high at 98.3%
Key Financial Metrics
- Property yield is high at 6.2%
- Management fees over distribution is low at 11.5% in which unitholders receive S$ 8.70 for every dollar paid
- Distribution on capital is moderate at 3.1%
- Distribution margin is low at 39.3%
Trends
- Flat - Property Yield
- Slight Downtrend - DPU, NAV per Unit
- Downtrend - Interest Coverage Ratio, Distribution on Capital, Distribution Margin
Relative Valuation
- Dividend Yield - Past 4 quarters DPU @ 5.359 cents / average yield @ 8.08% = S$ 0.665
- Price/NAV - NAV @ S$ 0.89 x average P/NAV @ 0.82 = S$ 0.73
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High Sponsor's Shareholding | Low Manager's Shareholding |
| High Directors of REIT Manager's Shareholding | All Income in RMB |
| High Occupancy | Short WALE |
| High Property Yield | Concentrated Lease Expiry |
| Competitive Management Fees | Short Weighted Average Land Lease Expiry |
| High Cost of Debt | |
| Low Fixed Rate Debt % | |
| 0% Unsecured Debt | |
| Short WADM | |
| Concentrated Debt Maturity | |
| Low Interest Coverage Ratio | |
| High Top Geographical Contribution | |
| High Top Property & Top 5 Properties Contributions | |
| High Top Tenant & Top Tenants Contributions | |
| Low Distribution Margin | |
| Interest Coverage Ratio Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
ECW performance has improved slightly as compared to the previous quarter. Note that I have excluded retention in the above analysis. I assume ECW would not distribute this amount because it is mentioned as retained for general working capital purposed in the latest result.
For more information, you could refer to:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
REIT-TIREMENT Patreon - Support as a Patron and get SREITs Dashboard PDF or Data Excel
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
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 accuracy, completeness, and reliability. It should not be taken as financial advice or a 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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