Singapore REIT Fundamental Analysis Comparison Table – 6 December 2015
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 722.93 to 699.39 (-3.3%) compare to last post on Singapore REIT Fundamental Comparison Table on Nov 1, 2015. The index looks like consolidating in a Symmetrical Triangle. The long term trend remains down as the index is trading below 200D SMA which is also sloping down. Keep a close eyes on this FTST ST REIT Index if US Fed announces the Interest Hike this month. Singapore REIT market will face another round of sell off if the recent support about 650 is broken.
- Price/NAV decreases from 0.95 to 0.93 (Singapore Overall REIT sector is under value now)
- Distribution Yield increases from 7.24% to 7.42% (take note that this is lagging number). More than half of Singapore REITs (23 out of 37) have Distribution Yield > 7%. Current yield is attractive but dangerous to make investing decision purely base on the yield. Past performance does NOT equal to future performance.
- Gearing Ratio increases from 34.54% to 34.82%. 20 out of 37 have Gearing Ratio more than 35%.
- Most overvalue is Parkway Life (Price/NAV = 1.36), followed by Ascendas iTrust (Price/NAV = 1.32).
- Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.63), followed by Far East HTrust (Price/NAV = 0.66).
- Higher Distribution Yield is Croesus RTrust (10.38%), followed by Lippo Malls Indonesia Retail Trust (10.10%)
- Highest Gearing Ratio is Croesus Retail Trust (47.3%) followed by iREIT Global (43.4%)
- BHG Retail REIT IPO Prospectus.
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 Interest Rate increases from 0.21% to 0.64%
- 1 month increases from 0.88800% to 0.94941%
- 3 month increases from 1.01050% to 1.07108%
- 6 month increases from 1.06846% to 1.13025%
- 12 month increases from 1.19551% to 1.25222%
Currently most REITs in Singapore are trading below 200D SMA which is technically bearish (see Singapore REIT Charts here). Although the distribution yield are very attractive but do take note that this is a lagging number. As REIT is very much depends on the economic cycle, it is important to keep a close eye on economic data (i.e. GDP, consumer spending, PMI) as economic condition will affect the future NPI. NPI will affect Distribution and share price. However, some REITs are more defensive in nature and less sensitive to economy slow down.
Some of the REITs in Singapore are currently trading at an attractive valuation and yield. Any knee jerk impact when the US Fed Reserve increases the interest present a good opportunity to accumulate in small quantity to build up our investment portfolio which can generate consistent and predictable passive income for our retirement.
If you want to learn how to select a SAFE REITs with predictable and consistent distribution payout, enter at the right price and right time,come and join the seminar on How to Invest in Singapore REIT to generate Passive Income.