For over a decade, INVESTFair has been ShareInvestor’s flagship event that was held annually, prior to the pandemic. This year, we are back for a virtual show on 21 and 22 August 2021, with a curated panel of industry experts and speakers to share their knowledge and insights amidst this “new norm”.
Setting our horizon farther down the road, the 2-days event will bring about discussions and exchanging of ideas on 6 upcoming investment trends in the next 10 years.
Highlights from the first Virtual INVEST Fair includes:
Live Sessions
Panel 1: 21 August, 10:55am
Panel 2: 22 August, 10:55am
Invited speakers will be sharing across content, focusing on 6 investment themes:
Wealth In China
Digital Transformation & Cyber Security
Gems in Small and Mid Caps
Environmental, Social and Governance (ESG)
Trends driven by Millennials
Asset & Portfolio Management
There will be a Q&A segment for all sessions, where attendees can post questions to each speaker/panel.
Virtual Booth
ShareInvestor, along with 4 Gold Sponsors will each have a virtual booth where attendees can visit virtually to join in the live webinars, promotions, and activities across 2 days.
e-Goodie Bag
Each registrant will receive an e-goodie bag with research reports and freebies from our partners.
The research report will cover topics on: • Top 5 Asset Management Funds and their Holdings • Investment Trend for the Next 10 years • A definitive Guide to ESG Investing • 2 Undervalued small and mid caps companies for your watchlist
Lucky Draw
A total of 8 prizes, ranging from $88 to $388 cash awaits the attendees. Simply login to the event to stand a chance at the draw.
Kenny Loh is a Senior Consultant and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.
InvestFair 2021 is happening! The first edition of InvestFair virtual features speakers and industry experts to bring across insights to WHERE and WHAT to invest in the current market. Click on the above banner to register for the event now.
Technical Analysis of FTSE ST REIT Index (FSTAS351020)
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased slightly from 868.08 to 882.31 (+1.64%) compared to the last month update. Currently the Singapore REIT index is still trading with a range between 816 and 890.
The following is the compilation of 38 Singapore REITs with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.
Note 1: Eagle Hospitality Trust has been removed.
Note 2: The Financial Ratio are based on past data and there are lagging indicators.
Note 3: This REIT table takes into account the dividend cuts due to the COVID-19 outbreak. Yield is calculated trailing twelve months (ttm), therefore REITs with delayed payouts might have lower displayed yields, thus yield displayed might be lower.
Note 4: REITs in orange have been updated with Q2 2021 business updates/earnings. REITs in blue are still using Q1 2021 values.
Singapore Overall REIT sector is slightly overvalued now.
Take note that NAV is adjusted downward for most REITs due to drop in rental income (Property valuation is done using DCF model or comparative model)
TTM Distribution Yield increased to 5.46%
Increased from 5.16% in July 2021.
9 of 38 (23.7%) Singapore REITs have distribution yields of above 7%.
Do take note that these yield numbers are based on current prices taking into account the delayed distribution/dividend cuts due to COVID-19, and post circuit breaker recovery.
Gearing Ratio decreased from 37.50%
Decreased from 37.68% in July 2021.
Gearing Ratios are updated quarterly.
In general, Singapore REITs sector gearing ratio is healthy but increased due to the reduction of the valuation of portfolios and an increase in borrowing due to Covid-19.
Most overvalued REITs (based on Price/NAV)
Parkway Life REIT (Price/NAV = 2.42)
Keppel DC REIT (Price/NAV = 2.15)
Mapletree Industrial Trust (Price/NAV = 1.69)
Mapletree Logistics Trust (Price/NAV = 1.61)
Ascendas REIT (Price/NAV = 1.38)
Frasers Logistics and Commercial Trust (Price/NAV = 1.33)
ARA LOGOS Logistics Trust (Price/NAV = 1.31)
Most undervalued REITs (based on Price/NAV)
Lippo Malls Indonesia Retail Trust (Price/NAV = 0.66)
BHG REIT (Price/NAV = 0.68)
Suntec REIT (Price/NAV = 0.70)
OUE Commercial REIT (Price/NAV = 0.72)
Far East Hospitality Trust (Price/NAV = 0.73)
Starhill Global REIT (Price/NAV = 0.74)
Frasers Hospitality Trust (Price/NAV = 0.78)
Highest Distribution Yield REITs (ttm)
First REIT (11.45%)
Sabana REIT (8.47%)
Keppel Pacific Oak REIT (8.33%)
Prime US REIT (8.04%)
Elite Commercial REIT (7.53%)
Sasseur REIT (7.34%)
Manulife US REIT (7.23%)
Reminder that these yield numbers are based on current prices taking into account delayed distribution/dividend cuts due to COVID-19.
Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
Highest Gearing Ratio REITs
ARA Hospitality Trust (49.0%)
Suntec REIT (43.1%)
ESR REIT (42.9%)
Lippo Malls Retail Trust (42.5%)
Elite Commercial REIT (42.1%)
Frasers Hospitality Trust (42.1%)
Mapletree North Asia commercial Trust (41.8%)
Total Singapore REIT Market Capitalisation increased to S$111.5 Billion.
Increased from S$108.4 Billion in July 2021.
Biggest Market Capitalisation REITs:
Capitaland Integrated Commercial Trust ($13.92B)
Ascendas REIT ($13.17B)
Mapletree Logistics Trust ($9.09B)
Mapletree Industrial Trust ($7.87B)
Mapletree Commercial Trust ($7.11B)
Smallest Market Capitalisation REITs:
BHG Retail REIT ($299M)
United Hamsphire REIT ($373M)
ARA Hospitality Trust ($396M)
First REIT ($443M)
Sabana REIT ($469M)
All 5 REITs were also the Smallest Market Capitalisation REITs in the March-July 2021 update.
Eagle Hospitality Trust has been removed
Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you need help to start building your own investment portfolio, or want a portfolio review, book a consultation with Kenny now! First consultation is free.
Fundamentally, the whole Singapore REITs landscape is slightly overvalued now based on the average Price/NAV value of the S-REITs. Below is the market cap heat map for the past 1 month. Unlike last month, where Small to Mid Cap REITs are the leaders in performance, in this update, Large Market Cap REITs generally are better performing.
Yield spread (in reference to 10 year Singapore government bond of 1.36% as of 6th August 2021) decreased slightly from 4.11% to 4.10% . However, the risk premium is still attractive to accumulate Singapore REITs in stages to lock in the current price and to benefit from long-term yield after the recovery. Moving forward, it is expected that DPU will increase due to the recovery of global economy, as seen in the previous few earning updates. NAV is expected to be adjusted upward due to revaluation of the portfolio.
Technically the REIT Index is still trading in a sideways consolidation waiting for a breakout (upside bias). Currently the REIT index is testing the resistance zone at 880-890. Breaking this resistance zone will bring the bull back into Singapore REITs sector. Current macro factors such as a low-interest rate environment, aggressive M&A for future DPU growth, wider roll out of the vaccination and recovery of global economic support the bullish breakout. In addition, Singapore is entering the 4 Stages Reopening with high vaccination rate which also supports the bull case.
Note: This above analysis is for my own personal research and it is NOT a buy or sell recommendation. Investors who would like to leverage my extensive research and years of Singapore REIT investing experience can approach me separately for a REIT Portfolio Consultation.
Kenny Loh is a Senior Consultant and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair. You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement
Money and Me: Which Reits have seen limited impact during Covid on occupancy?
Get an overview of the S-REIT space, find out if hospitality Reits could see an uptick in revenue and if data centres are likely to be a key investment focus for Asian Reits. Also what could be key drivers for S REITS in q2 of this year? Michelle Martin finds out with Kenny Loh, REIT Specialist and Independent Financial Advisor.
How is the S-REITs sector faring now
Office/Retail REITs with highest occupancy and lease expiry dates
Kenny Loh is a Senior Consultant and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Sympsosium and Invest Fair.
