Singapore REIT Fundamental Analysis Comparison Table – 1 Mar 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 696.54 to 714.18 compare to last post on Singapore REIT Fundamental Comparison Table on Feb 8, 2014. The index is trading below 200D SMA (and sloping down) and technically bearish but consolidating within a Descending Triangle. Breaking down from this Descending Triangle will trigger more selling of Singapore REITs.

FTSE ST REIT Index Mar1-2014

  • Price/NAV decreases from 0.9471 to 0.9687.
  • Dividend Yield increases from  6.80% to 6.84%.
  • Gearing Ratio increases from  33.93% to 34.00%.
  • In general, most Singapore REIT is slightly under value now and the distribution yield is attractive (but with risks). Most of the Singapore REITs are trading in a consolidation range and seems like waiting for the next big move base on technical analysis and chart pattern.
  • There are two negative points to take note when investing in Singapore REITs:
    • Overall sentiment is negative for Singapore REITs. This can be seen from the the FTSE ST Real Estate Investment Trust Index and FTSE ST Real Estate Index.
    • The uncertainty in term of interest hike in near future remains high as Federal has started the QE tapering. Any hike in interest will affect the distribution income (reduction), NAV (value drops) and also the gearing ratio (increase) of the REIT. All of these will weaken the fundamental of the REIT and affect the REIT share price.
  • However there are some REITs in Singapore have been managing their debt maturity profile pretty well and have minimum impact if there is an increase in interest rate. The DPU should not be affected much and the risk of DPU reduction is minimal. The key thing here is how to find out those “Gem” by applying the right method to analyse the Risks. Join the next workshop on “How to pick Singapore REIT for Dividend Investing” to learn how to do Quantitative, Qualitative Analysis and Risk Assessment Plus Identify the Trend on Singapore REITs so not to miss out any opportunity to pick up “Low Risk REITs with Decent Dividend Yield”.

Singapore REIT NAV Gearing Distribution Yield Comparison Table 1-Mar-2014

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Which Singapore REITs to avoid and Which One to Pick?

Added SoilBuildBiz REIT, VIVA Industrial Trust and OUE Commercial REIT which were just IPOed recently. These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Two visual bubble charts to pick and avoid:

  1. Undervalue Singapore REITs with High Distribution Yield (Value Pick)
  2. Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

Singapore REIT Bubble Chart (Risk) Feb8-2014 Singapore REIT Bubble Chart (Value) Feb8-2014

See Last Singapore REIT Bubble Charts here.

See detail Singapore REITs Fundamental Comparison Table here.

Although some of the REITs are attractive for long term investing to generate passive income but do remember to look at the chart first because cheap REIT can become cheaper when the stock price is on the down trend.

Disclaimer: This is NOT a recommendation to buy or sell. The authors do not guarantee the accuracy of the data and NOT responsible to any wrong interpretation by the readers.

Singapore REIT Fundamental Analysis Comparison Table – 8 Feb 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 714.92 to 696.54 compare to last post on Singapore REIT Fundamental Comparison Table on Jan 2, 2014. The index is trading below 200D SMA and technically bearish. The index is current testing the support at about 690 with the formation of Descending Triangle. Breaking down from this Descending Triangle will trigger more selling of Singapore REITs.

FTSE ST REIT Index Feb8-2014

Compare to last Singapore REIT comparison table:

  • Added OUE Commercial REIT.
  • Price/NAV decreases from 1.001 to 0.9471.
  • Dividend Yield increases from  6.34% to 6.80%.
  • Gearing Ratio increases from  33.34% to 33.93%.
  • In general, most Singapore REIT is slightly under value now and the distribution yield is reasonable. However technically Singapore REIT is in the bearish territory and going to drop further if the 690 support (FTSE ST REIT Index Chart) is broken. So don’t be ignorant to think this is the time to buy REIT yet as the price can drop further.  The uncertainty in term of interest hike in near future remains high as Federal has started the QE tapering after a series of good economy data in US. Any hike in interest will affect the distribution income (reduction), NAV (value drops) and also the gearing ratio (increase) of the REIT. All of these will weaken the fundamental of the REIT and affect the REIT share price. If you are still holding REIT at the moment, you need to have a strong heart to handle the potential new drop in your REIT. Investors need to look at the TOTAL Profit & Loss (Initial Capital + Dividend) in any REIT investment analysis. It is no point to gain the Annual Dividend of 8% but lose the capital invested of 10% within 2 weeks (if the share price drop by 10% in 2 weeks). This is extremely possible as currently Singapore REITs in in the bearish down trend.

Singapore REIT NAV Gearing Distribution Yield Comparison Table 8-Feb-2014

Find out how do I conduct research on Singapore REIT, how I color code and interpret those financial ratio in the comparison table, and why am I NOT touching any REIT at the moment although some REITs are undervalue. Find out WHERE and HOW to read the FTSE ST Real Estate Investment Trust Index because timing is very critical in making any investment decision.  Check out my next public tutorial on  “How to pick Singapore REIT for Dividend Investing” .