Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is low at 21.646%
- REIT manager's shareholding is high at 5.739%
- Directors of REIT manager's shareholding is low at 0.07%
Lease Profile
- Occupancy is low at 89%
- All income is received in India Rupee
- WALE is moderate at 3.9 years
- Highest lease expiry within 5 years is high at 40% which falls in 2025 and beyond, without breakdown
- Most of the properties are freehold
Debt Profile
- Gearing ratio is slightly low at 35%
- Cost of debt is high at 5.3%
- Fixed rate debt % is moderate at 74%
- All debts or unsecured debts
- WADM is short at 2.1 years
- Highest debt maturity within 5 years is moderate at 32.7% which falls in 2022
- Interest coverage ratio is slightly low at 3.8 times
Diversification Profile
- Top geographical contribution is low at 36.2%
- Top property contribution is high at 36.2%
- Top 5 properties contribution is high at 86%
- Top tenant contribution is high at 13%
- Top 10 tenants contribution is high at 43.6%
Key Financial Metrics
- Property yield is high at 7.7%
- Management fees over distribution is high at 16.9% in which unitholders receive S$ 5.92 for every dollar paid
- Distribution on capital is high at 4.5%
- Distribution margin is moderate at 51.4%
Trends
- Uptrend - DPU, NAV per Unit, Interest Coverage Ratio, Distribution Margin
- Flat - Distribution on Capital
- Downtrend - Property Yield
Relative Valuation
- P/NAV - Average for 1y, 3y and 5y
- Dividend Yield - Average for 1y, 3y and 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| High REIT Manager's Shareholding | Low REIT Sponsor's Shareholding |
| Mostly Freehold Properties | Low Directors of REIT Manager's Shareholding |
| 100% Unsecured Debt | Low Occupancy |
| Low Top Geographical Contribution | All income is received in India Rupee |
| High Property Yield | High Cost of Debt |
| High Distribution on Capital | Short WADM |
| DPU Uptrend | High Top Property & Top 5 Properties Contributions |
| NAV per Unit Uptrend | High Top Tenant & Top 10 Tenants Contributions |
| Interest Coverage Ratio Uptrend | Non-Competitive Management Fees |
| Distribution Margin Uptrend | Property Yield Downtrend |
Despite occupancy dropping to a historical low of 89% and an unfavorable exchange rate, AIT has managed to increase gross revenue and NPI (in SGD) as compared to the whole past 1 year. From the presentation, AIT expects the leasing activity to be improved in early 2022.
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*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 and 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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