Singapore REIT Fundamental Analysis Comparison Table – 8 April 2017

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 732.6  to 762.19 (+4.03%) ( compare to last post on Singapore REIT Fundamental Comparison Table on Mar 6, 2017. The index has broken 200D SMA resistance at about 740 but currently facing a declining resistance at 760. Also take note that all three simple moving averages are trending upward for the REIT index. Next resistance at 780.   SGX S-REIT (REIT.SI) Index increases from 1,135.36 to 1,172.85 (+3.30%).


  • Price/NAV increases from 0.967  to 0.998 (Singapore Overall REIT sector is at fair value now).
  • Distribution Yield decreases from 7.03% to 6.78% (take note that this is lagging number). More than half of Singapore REITs (17 out of 40) have Distribution Yield > 7%. High yield REITs mainly from Hospitality Trust and small cap Industrial REIT, but we must understand the risks while chasing for the high yield. Check out How to spot those Fundamentally strong REIT with attractive yield to build up a Passive Income Portfolio?
  • Gearing Ratio no change at 34.76%.  21 out of 40 have Gearing Ratio more than 35%.
  • Most overvalue is Ascendas iTrust (Price/NAV = 1.57), followed by Parkway Life (Price/NAV = 1.53), FIRST REIT (Price/NAV = 1.327),  Keppel DC REIT (Price/NAV = 1.312) and Mapletree Industrial Trust (Price/NAV = 1.31)
  • Most undervalue (base on NAV) is Far East HTrust (Price/NAV = 0.659), followed by  Sabana REIT (Price/NAV = 0.682), Fortune REIT (Price/NAV = 0.695) and Keppel REIT (Price/NAV = 0.734)
  • Highest Distribution Yield is SoilBuild BizREIT (9.30%), followed by Viva Industrial Trust (8.81%) and Lippo Malls Indonesia Retail Trust (8.70%)
  • Highest Gearing Ratio is Croesus Retail Trust (46.1%), iREIT Global (41.6%), Sabana REIT (43.2%) and Cache Logistic Trust (43.1%).


Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.


  • Singapore Interest Rate increases from 0.22% to 0.57%.


  • 1 month increases from  0.71538% to 0.74833%
  • 3 month decreases from   0.94005% to 0.94580%
  • 6 month decreases from 1.24800% to 1.24700%
  • 12 month stays at  1.38000%


The Singapore Manufacturing PMI increased to 51.2 in March of 2017 from 50.9 in the previous month. The reading pointed to the strongest expansion in a factory activity since November of 2014, driven by higher levels of new orders, new exports, factory output, inventory, and employment. In contrast, finished goods and order backlog showed slower expansion. Also, the PMI for electronics sector rose to 51.8 from 51.4 in February. Manufacturing PMI in Singapore averaged 50.03 from 2012 until 2016, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012.


The GDP in Singapore advanced an annualized 12.3 percent on quarter in the last three months of 2016, recovering from a 0.4 percent contraction in the previous quarter and above earlier estimates of 9.1 percent. It is the strongest growth rate since the first quarter of 2011, mainly due to a rebound in manufacturing (+39.8 percent from -5 percent in Q3). GDP Growth Rate in Singapore averaged 6.86 percent from 1975 until 2016, reaching an all time high of 37.20 percent in the first quarter of 2010 and a record low of -13.50 percent in the fourth quarter of 2008.

Fundamentally the whole Singapore REITs is at its fair value in average. There are also sign of recovery in Office and Hospitality sectors where the quarterly DPU has started to increase again.

Technically Singapore REITs has broken the 200D SMA resistance and looks like starting an uptrend. However, the Singapore REITs Index has to clear 760 and 780 resistances to confirm the start of bullish trend.

The Singapore REITs seem have fully priced in the 2 remaining rate hikes this year as investors are back to hunt for REITs with good fundamental. There are still some value picks for  REITs with good fundamental but we have to be very selective. If you want to know how to identify those REITs, check out the next Investing in Singapore REIT course here.

See my Singapore REIT 2017 Market Outlook here.

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Watch Emerging Market Rally

I have been following closely on the Emerging Market for any investment opportunity. Just saw this useful article from Bloomberg and thus summarize some key points for my own record.

Why Political Turmoil Hasn’t Stopped the Emerging Market Rally


  • Growth gap, earnings, valuations back bullish equity outlook
  • Stocks rise even as political risks rise from Russia to Brazil


All the chaos was overshadowed by investing fundamentals, according to market participants who point to a surge in corporate earnings forecasts and economic growth that far outstrips expansion in developed countries. Economists predict that growth gap, which widened last year for the first time since at least 2010, will expand in the next three years, meaning a bigger middle class and greater opportunities for businesses. That makes it easy to overlook the political risks.

“Markets have become used to the political noise, especially after Brexit and the unexpected election in the U.S.,” said Simon Quijano-Evans, an emerging-market strategist at Legal & General Investments Management Ltd. in London. “The question is: When does all of this culminate into a huge balloon that eventually explodes? I don’t think we’re there yet.”



Since January 2016, there has been a rebound in earnings estimates for companies based in developing nations. Analysts raised the profit outlook for the MSCI Emerging Markets Index by the most since September 2010 in the last quarter. Particularly notable was that some of the most politically turbulent nations — including Russia and Turkey — saw their forecasts rising to records.


The increase in earnings estimates is keeping a lid on valuations, so much so that developing-nation stocks are becoming cheaper relative to their developed-nation peers even as they rally. The greater discount, coupled with higher growth and earnings potential, makes them irresistible to investors even amid all the political drama.



Build a Diversified Investment Portfolio to Manage Risk

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Completed a training “How to Build a Diversified Portfoliof for Retirement” at Natixis Global Asset Management last night. In the class, I have gone through the Personal Investment Risk Profile (Life Stage Adjusted) with the participants so that everyone know how they can do their asset allocation in their investment portfolio. I also shared how to reduce the portfolio volatility and max draw down by varying the asset allocation percentage, By varying the asset classes and asset allocation % can help us to navigate in different market condition and remove our emotion in the decision making.


Lastly I shared about the importance and the needs of Portfolio Re-balancing as this is a systematic and disciplined approach in managing our investment portfolio.  I also shared the stock market is cyclical in nature, so buy/close one eye/hold forever may not be a good strategy over the long run. The reason is any country, any sector, any regional cannot be the best performer year after years, and they have to come down after a while. Thus,  We have to re-balancing our portfolio at least once a year in order to optimise the returns.



Feel free to send me an email if you want to understand more how to build a diversified investment portfolio to manage your investment risk,