Singapore REIT Fundamental Analysis Comparison Table – 2 Sept 2018

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased slightly from 802.53 to  808.04(+0.69%) as compared to last post on Singapore REIT Fundamental Comparison Table on Aug 6, 2018.  The REIT index continues to trade within a tight range between 800 and 820. 820 is the 200D SMA resistance whereas 800 is the neckline support of the Head and Shoulders chart pattern.

Immediate crucial support level to watch is 800. If this 800 neckline support is broken, the target of this Head and Shoulders chart pattern break down is 740. The next immediate resistance turned support zone is at 770-780 level.

Short to Medium Term Singapore REIT direction: Side way to Down.

 

Fundamental Analysis

 

  • Price/NAV stays at to 1.00 (Singapore Overall REIT sector is at fair value now).
  • Distribution Yield increases from 6.66%  to 6.67% (take note that this is lagging number). About one third of Singapore REITs (14 out of 40) have Distribution Yield > 7%.
  • Gearing Ratio increases from 34.5% to 34.6%.  22 out of 40 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy.
  • Most overvalue REIT is Parkway Life (Price/NAV = 1.53), followed by Keppel DC REIT (Price/NAV = 1.34), Ascendas REIT (Price/NAV = 1.35) and Mapletree Industrial Trust (Price/NAV = 1.34).
  • Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.59), followed by  Starhill Global REIT (Price/NAV = 0.77), Far East Hospitality Trust (Price/NAV = 0.74), OUE Comm REIT (Price/NAV = 0.74) and EC World REIT (Price/NAV = 0.75).
  • Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (10.58%), followed by SoilBuild BizREIT (8.42%), Viva Industrial Trust (8.35%), Cromwell European REIT (8.49%), EC World REIT (8.44%), Sasseur REIT (8.22%) and Cache Logistic Trust (8.09%).
  • Highest Gearing Ratio are Viva Industrial Trust (41%), Far East HTrust (40.3$) and OUE Comm REIT (40.3%).

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.

  • 1 month increases from 1.50208% to 1.50784%
  • 3 month increases from 1.62883% to 1.63239%
  • 6 month increases from 1.74750% to 1.75000%
  • 12 month increases from 1.95321% to 1.95692%

It is expected US Fed will raise the interest to 2.25% in Sept 2018. However, it looks like current FTSE ST REIT index has already priced in coming rate hike. Next watch is the rate hike in Dec 2018.

 

Summary

Fundamentally the whole Singapore REITs is at fair value now.  Overall yield for Singapore REIT is still attractive (average yield of 6.67%). Yield spread (reference to 10 year Singapore government bond) is  4.29% (compared to previous month of 4.183%). DPU yield for a number of small and mid cap REITs are quite attractive (>7%) at the moment.  However, technically, the REIT index is forming a Head and Shoulder trend reversal chart pattern, and currently trading sideway waiting for the breakout. More down side is expected if the 800 support level is broken. It is time to get our watch list ready if the REIT sectors continue to correct to an attractive entry level.

 

See all other relevant  Singapore REITs blog posts here.

If you need an independent professional review on your current REIT portfolio and need any recommendation, you may engage me in the REIT portfolio Advisory. REITs Portfolio Advisory.  http://mystocksinvesting.com/course/private-portfolio-review/

 

Finally I have sometimes to conduct the REITs Investing Course again in this coming Oct 2018.

Please check out the detail here and register online.

Investing in Singapore REITs

 

Singapore REIT Bubble Charts Aug 2018

Bubble charts derived from Aug 6, 2018 Singapore REITs Fundamental Comparison Table. Two observations compared to last Bubble Charts.

(1) No significant changes in term of Price/NAV and distribution yield.

(2) There are significant reduction of gearing ratio for Ascendas HT and Fortune REIT based on the latest earning release. These two REITs are under value and also have more debt room for new acquisition.

 

 

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)

** Distribution Yield are lagging.

Compared to previous Singapore REIT Bubble Charts here.

 

Disclaimer: The analysis is for Author own use and NOT to be used as Buy / Sell recommendation. Get a proper training on “How to use this Singapore REIT Bubble Charts?” here.

I will be sharing on how to use these Bubble Charts to identify investment opportunities in the coming INVEST Fair on Aug 26.

You can register the event by  clicking HERE or https://goo.gl/jPWHeu and enter promo-code MYSTOCKSINVESTING to have 3x chances to win the lucky draw.  We chat more if you can catch me at INVEST Fair, see you!

 

KENNY LOH

 

Original Post from http://mystocksinvesting.com

 

Also see other courses and seminars below.

http://mystocksinvesting.com/events/

Singapore REIT Price / NAV Range Chart Aug -2018

Original post from http://mystocksinvesting.com

Singapore REIT Price / NAV Range Chart base on Aug 6, 2018 Singapore REITs Table.

 

 

See last Singapore REITs Price/NAV here to see the changes.

Disclaimer: This chart is NOT a recommendation to buy or sell. Do NOT use it if you don’t understand how to interpret it.

BUT good news is I will explain how to use this Price/NAV Range Chart to identify investment opportunities in the coming INVEST Fair on Aug 26.

You can register the event by  clicking HERE or https://goo.gl/jPWHeu and enter promo-code MYSTOCKSINVESTING to have 3x chances to win the lucky draw.  We chat more if you can catch me at INVEST Fair, see you!

 

 

KENNY LOH

 

Check below on other events:

http://mystocksinvesting.com/course/singapore-reits-investing/REITs Investing Course 

http://mystocksinvesting.com/course/private-portfolio-review/REITs Portfolio Advisory 

http://mystocksinvesting.com/events/