Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is low at 6.411%
- REIT manager's shareholding is slightly high at 1.169%
- Directors of REIT manager's shareholding is high at 8.572%
Lease Profile
- Occupancy is high at 97.6%
- WALE is long at 4.85 years
- Highest lease expiry within 5 years is low at 21.7% which falls in FY24
- Weighted average land lease expiry is short at 40.64 years
Debt Profile
- Gearing ratio is moderate at 37.3%. Include perps, gearing ratio is at 53.9%.
- Cost of debt is high at 2.8%
- Fixed rate debt % is low at 57%
- Unsecured debt % is low at 31.9%
- WADM is long at 3.2 years
- Highest debt maturity within 5 years is high at 41.3% which falls in FY27
- Interest coverage ratio is low at 3.3 times
- Preferred/perpetual securities over debt is high at 30.9%
Diversification Profile
- Top geographical contribution is high at 84.8%
- Top property contribution is low at 13.1%
- Top 5 properties contribution is low at 43.3%
- Top tenant contribution is slightly high at 13.4%
- Top 10 tenants contribution is high at 47.9%
Key Financial Metrics
- Property yield is high at 6%
- Management fees over distribution is low at 12.5 % in which unitholders receive S$ 8.00 for every dollar paid
- Distribution on capital is slightly high at 3.9%
- Distribution margin is moderate at 46.4%
Trends
- Flat - NAV per Unit
- Slight Downtrend - Property Yield
- Downtrend - DPU, Interest Coverage Ratio, Distribution on Capital, Distribution Margin
Relative Valuation
- P/NAV - Below average for 1y; Average for 3y & 5y
- Dividend Yield - Above +1SD for 1y; Average for 3y & 5y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Diversified Sector | Low REIT Sponsor's Shareholding |
| High Directors of REIT Manager's Shareholding | Short Weighted Average Land Lease Expiry |
| High Occupancy | High Cost of Debt |
| Long WALE | Low Fixed Rate Debt % |
| Well Spread Lease Expiry | Low Unsecured Debt % |
| Long WADM | Concentrated Debt Maturity |
| Low Top Property & Top 5 Properties Contributions | Low Interest Coverage Ratio |
| High Property Yield | High Perpetual Securities % |
| Competitive Management Fees | High Top Geographical Contribution |
| High Top 10 Tenants Contribution | |
| DPU Downtrend | |
| Interest Coverage Ratio Downtrend | |
| Distribution on Capital Downtrend | |
| Distribution Margin Downtrend |
As compared to the previous quarters, gross revenue and NPI has improved after the acquisition of Woolworths HQ. However, distributable income and DPU are lower as compared to the previous quarter, no detail was provided. Do note that AAREIT currently has the highest perpetual securities to total debts ratio (total debts = borrowings + perpetual securities) among Singapore REITs.
You could also refer below for more information:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and Detail of Singapore REIT
REIT Analysis - List of previous REIT analysis posts
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive contents
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 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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