Singapore REIT Fundamental Analysis Comparison Table – 1 Oct 2018

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 808.04 to 802.97 (-0.63%) as compared to last post on Singapore REIT Fundamental Comparison Table on Sept 2, 2018.  The REIT index continues to trade within a tight range between 800 and 820 and is currently forming a Symmetrical Triangle (a medium term consolidation chart pattern).

There are two chart patterns observed in this FTSE ST REIT Index. Head and Shoulders pattern is the trend reversal pattern, this is a bearish pattern. Symmetrical Triangle is a consolidation pattern, i.e. moving sideway. Thus, Short to Medium Term Singapore REIT direction: Side way to Down.

 

Fundamental Analysis

 

  • Price/NAV decreases from to 1.00 to 0.99 (Singapore Overall REIT sector is slightly under value now).
  • Distribution Yield increases from 6.67% to 6.77% (take note that this is lagging number). About one third of Singapore REITs (17 out of 40) have Distribution Yield > 7%.
  • Gearing Ratio stays at 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 = 1.54), followed by Keppel DC REIT (Price/NAV = 1.36), Ascendas REIT (Price/NAV = 1.30) and Mapletree Industrial Trust (Price/NAV = 1.34).
  • Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.58), followed by  Starhill Global REIT (Price/NAV = 0.77), Far East Hospitality Trust (Price/NAV = 0.73), OUE Comm REIT (Price/NAV = 0.67) and EC World REIT (Price/NAV = 0.77).
  • Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (11.19%), followed by SoilBuild BizREIT (8.91%), Viva Industrial Trust (8.31%), Cromwell European REIT (8.14%), EC World REIT (8.49%), Sasseur REIT (8.28%) and Cache Logistic Trust (8.25%).
  • 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 1.50784% to 1.51200%
  • 3 month increases from 1.63239% to 1.63740%
  • 6 month increases from 1.75000% to 1.75300%
  • 12 month increases from 1.95692% to 1.96141%

US Fed has increased the interest rate to 2.25% on Sept 26, 2018. There is no knee jerk reaction because FTSE ST REIT index has already priced in rate hike. Next watch is the rate hike in Dec 2018. The current probability of interest rate hike to 2.5% is 74.4%.

 

 

Summary

Fundamentally the whole Singapore REITs is slightly under value now.  Overall yield for Singapore REIT is getting attractive (average yield of 6.77%). Yield spread (reference to 10 year Singapore government bond) has compressed to 4.238% (compared to previous month of 4.29%). 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 side way in a symmetrical triangle pattern waiting for the breakout. More down side is expected if the 800 support level is broken. Small and medium cap REITs have reached an attractive entry level and investors can do some selective shopping now.

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

 

 

 

 

 

Weekly Inter Market Analysis Oct 23-2016

See previous week Weekly Inter Market Analysis.

Original post from http://mystocksinvesting.com

SPY (SPDR S&P500 ETF)

SPY is still staying above the big Rising Wedge support after broke down from a Symmetrical Triangle. Keep an eye this coming week to see whether there is a follow through of this breakdown.

  • Resistance turned support zone: 211-213
  • Rising Wedge immediate support: about 210
  • Previous Head and Shoulders neckline support: about 204.
  • Rising Wedge next support: about 200

spy-oct23-2016

VIX

VIX dropped below 15 again, a complacent zone. Still no fear in the stock market.

vix-oct23-2016

 

Sector Performance (SPDR Sector ETF)

  • Best Sectors: Material (XLB) +1.60%
  • Worst Sector: Industrial (XLI)  -0.24%

sector-performance-oct-23-2016

 

SUDX (S&P US Dollar Futures Index)

SUDX broke out from the Symmetrical Triangle and broke the next resistance at 130.36. If this continues, SUDX will start a confirm uptrend.

sudx-oct23-2016

 

FXE (Currency Shares Euro ETF)

FXE broke the rising trend support and currently testing a critical support. If this support (red zone) is broken, FXE is expected to star a next down trend move.

fxe-oct23-2016

 

XLE (SPDR Energy Sector ETF)

XLE is expected to trade within the up trend channel. 200D SMA is starting to trend up. Keep an eye of the energy sector recovery (driven by Crude Oil, see USO chart)

xle-oct23-2016

 

USO (United States Oil Fund)

USO broke the resistance. If USO can stay above this resistance (about $11.44) and make this level a resistance turned support, USO will start an uptrend.

uso-oct23-2016

 

TLT (iShares 20+ Years Treasury Bond ETF)

TLT rebounded from the support at 132.5 and just closed just above the 200D SMA! 200D SMA is still trending up and coincides to 61.8% Fibonacci Retracement Level. This will be an attractive entry point if this 200D SMA support is valid.

tlt-oct23-2016

 

GLD (SPDR Gold Shares)

  • GLD looks like rebounded from the 200D SMA support. 200D SMA is trending up.
  • GLD is also sitting on the 61.8% Fibonacci Retracement Support.
  • Expect GLD to rebound from level.

gld-oct23-2016

 

Next Week Economic Calendar

Key events:

  • Germany Manufacturing PMI Oct 24 (Monday)
  • ECB President Draghi speaks on Oct 26 (Wednesday)
  • Crude Oil Inventory on Oct 26 (Wednesday)
  • Pending Home Sales on Oct 27 (Thursday)

economic-calendar-oct-23-oct29-2016

See other Events here. http://mystocksinvesting.com/events/