Singapore REIT Fundamental Analysis Comparison Table – 2 Sept 2018

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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

 

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