Singapore REIT Fundamental Analysis Comparison Table – 5 June 2016



FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 734.98 to 717.26  (-2.41%) compare to last post on Singapore REIT Fundamental Comparison Table on May 1, 2016. The index is just barely staying above 200D SMA (but sloping down) and forming a Head and Shoulder (a potential reversal pattern) with 200D SMA acts as the neckline support. Breaking this neckline support will probably send the index down to 660-670 region.  SGX S-REIT (REIT.SI) Index decreases from 1127.56 to 1102.94 (-2.18%)

FTSE ST REIT Index June4-2016 FTSE ST REIT Index June4a-2016

  • Price/NAV decreases from  0.965 to 0.948 (Singapore Overall REIT sector is under value now)
  • Distribution Yield increases from 7.1% to 7.25% (take note that this is lagging number). More than half of Singapore REITs (20 out of 38) have Distribution Yield > 7%. Current yield is attractive (for certain REITs only) but dangerous to make investing decision purely base on the yield. Past performance does NOT equal to future performance.
  • Gearing Ratio decreases from 34.92% to 34.76%.  24 out of 38 have Gearing Ratio more than 35%.
  • Most overvalue is Parkway Life (Price/NAV = 1.467),  followed by Ascendas iTrust (Price/NAV = 1.399).
  • Most undervalue (base on NAV) is Far East HTrust (Price/NAV = 0.656), Fortune REIT (Price/NAV = 0.676), followed by Sabana REIT (Price/NAV = 0.695).
  • Higher Distribution Yield is Lippo Malls Trust (9.91%) followed by Cache Logistic Trust (9.65%)
  • Highest Gearing Ratio is Croesus Retail Trust (46.2%), iREIT Global (43.1%) and OUE Commercial Trust (40.5%)
  • Note: Manulife US REIT is added.

Singapore-REIT-Fundamental-Analysis-and-Comparison-Table-5-Jun-2016

 

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 Average Overnight Interest Rate  

The benchmark interest rate in Singapore was last recorded at 0.23 percent. Interest Rate in Singapore averaged 1.67 percent from 1988 until 2016, reaching an all time high of 20 percent in January of 1990 and a record low of -0.75 percent in October of 1993. Interest Rate in Singapore is reported by the Monetary Authority of Singapore.

  • Singapore Interest Rate increases from 0.13% to 0.23%

Singapore Interest Rate June4-2016SIBOR June4-2016

  • 1 month increases 0.73701% to 0.75634%
  • 3 month increases from 1.00000% to 1.00192%
  • 6 month increases from 1.23521% to 1.23863%
  • 12 month increases from 1.37163% to 1.37375%

 

Singapore Manufacturing PMI  

The Singapore PMI was unchanged at 49.8 in May of 2016 from the previous month, posting its eleventh consecutive month of contraction. While new orders (49.7 from 49.8 in April) and employment (49.1 from 49.3) continued to fall, factory output increased for the first time in 11 months (50.1 from 49.9). Manufacturing PMI in Singapore averaged 50.13 from 2012 until 2015, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012. Manufacturing PMI in Singapore is reported by the Singapore Institute of Purchasing & Materials Management, SIPMM.Singapore Manufacturing PMI June 4-2016

Fundamentally Singapore REITs in general, the valuation and distribution yields are still attractive The US Fed’s rate hike fear may be already priced in as it has been dragged for too long. Most REITs have already prepared for it by actively managing their debts. Technically Singapore REITs index is probably moving side way or down base on the chart patterns (Rectangle and Head & Shoulder). Healthcare and sub-urban retail malls are resilient but Industrial, Office and Hospitality sectors are facing headwinds. Find out Which Singapore REIT to Buy, Which Sectors to consider,  and When is the Right Time to Buy in the next Singapore REITs Investing class.

 

 

Singapore REIT Fundamental Analysis Comparison Table – 1 July 2015

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 795.76 to 781.09 compare to last post on Singapore REIT Fundamental Comparison Table on June 1, 2015. The index has broken down from the 200D SMA support and trading below 20D/50D/200D SMA. Down trend has been started for Singapore REITs in general as “Lower Low, Lower High” chart pattern is formed.  Immediate resistance at 785. Take note that the index has broken the Head and Shoulder neckline support. This is a trend reversal pattern.

Learn Stock Chart Pattern and Technical Analysis here.

FTSE ST REIT Index July1-2015

  • Price/NAV decreases from 1.05 to 1.03.  (Singapore REIT in general slightly overvalue)
  • Distribution Yield increases from 6.48% to 6.61% (take note that this is lagging number)
  • Gearing Ratio remains at 34.08%
  • Most overvalue REIT is Parkway Life (Price/NAV = 1.37), followed by FIRST REIT  (Price/NAV = 1.36). Both Healthcare REIT, Defensive in nature.
  • Most undervalue REIT is Fortune REIT (Price/NAV = 0.66), followed by OUE Commercial Trust (Price/NAV = 0.74).
  • Higher Distribution Yield is VIVA Industrial Trust (9.54%) followed by Lippo Mall Trust (8.66%). Note: High Distribution Yield does not mean it is safe REIT for investment. Don’t invest purely base on the Yield % because it is wrong thing to do without knowing the reasons.
  • Highest Gearing Ratio is Croesus Retail Trust (50.4%) followed by VIVI Industrial Trust (43.4%)

Grab an insight of the REIT class here 3 Tips To Increasing Returns On REITs Investments

Check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.

Singapore-REIT-Fundamental-Analysis-and-Comparison-Table-1-Jul-2015

Singapore Interest Rate July1-2015SIBOR July1-2015

  • Singapore Interest Rate increase from 0.22% to 0.39%.
  • 1 month decreases from 0.70696% to 0.69688%
  • 3 month decreases from 0.82955% to 0.82100%
  • 6 month decreases from 0.88909% to 0.88374%
  • 12 month decreases from 1.01839% to 1.01367%

We have finished the month of June but US Federal Reserve still has not increased the interest rate yet. Interest hike will affect the borrowing cost, it is time for all the Investors to review your current investment portfolio and debt profile. Plan the next step before the day comes because it will affect your investment and loan monthly installment. Take initiative to evaluate your current mortgage loan and work on Refinance Plan before the mortgage loan interest shot up even further.