Singapore REIT Fundamental Analysis Comparison Table – 2 September 2015
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 752.6 to 683.6 (-9.17%) compare to last post on Singapore REIT Fundamental Comparison Table on Aug 2, 2015. The index has broken down from the 200D SMA support and it is a confirmed down trend. Immediate resistance at 710. Expect more down side in coming months as there is no sight of bottoming and trend reversal yet. Don’t catch the falling knife in Singapore REITs although the Distribution Yield looks very attractive at the moment.
- Price/NAV decreases from 1.00 to 0.91. (Singapore REIT is under value now)
- Distribution Yield increases from 6.84% to 7.49% (take note that this is lagging number). Current yield is attractive but dangerous to make investing decision purely base on the yield.
- Gearing Ratio increase slightly from 34.02% to 34.09%
- Most overvalue is Ascendas iTrust (Price/NAV = 1.37) followed by Parkway Life (Price/NAV = 1.33).
- Most undervalue is OUE Commercial Trust (Price/NAV = 0.57), followed by Fortune REIT (Price/NAV = 0.60).
- Higher Distribution Yield is VIVA Industrial Trust (10.09%) followed by iREIT Global (9.55%). Note: Yes!! It is very attractive but we have to understand the Risks and whether the distribution is sustainable or not. 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 (47.3%) followed by Keppel REIT (42.6%)
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, check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.
- Singapore Interest Rate decrease from 1.01% to 0.45%
- 1 month increases from 0.75916% to 0.94621%
- 3 month increases from 0.87858% to 1.07075%
- 6 month increases from 0.93858% to 1.12700%
- 12 month increases from 1.06358% to 1.24788%
Base on the latest trend analysis from the stock chart, Retail Malls and Healthcare REITs have broken down the support and started the sell off. Basically all the REITs in Singapore started the down trend. The current correction of Singapore REITs provides a good opportunity to pick up some fundamental strong REITs for long term passive income investing. It is time to prepare a Great Singapore REIT Shopping list and wait for the right valuation and entry point to start accumulation. Happy Shopping!
Check out all Singapore REITs Chart Here.