Singapore REIT Fundamental Analysis Comparison Table – 1 June 2018

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from  814.74 to 800.42 (-1.76%) as compared to last post on Singapore REIT Fundamental Comparison Table on May 13, 2018.  The REIT index has broken the bearish flag pattern and starts the down trend. Both 20D and 50D SMA has already crossed down 200D SMA and trending downward.  Currently the REIT index is just hanging on to 800 support.  Further down side is expected if a huge bearish candle is seen trading below this 800 level. We welcome the Bear visits Singapore REIT sector!

 

Fundamental Analysis

 

  • Price/NAV decreases from to 1.02 (Singapore Overall REIT sector near to the fair value).
  • Distribution Yield increases from 6.55% to 6.64% (take note that this is lagging number). About one third of Singapore REITs (14 out of 40) have Distribution Yield > 7%.
  • Gearing Ratio stays at 34.7%.  20 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 = 1.59), followed by Keppel DC REIT (Price/NAV = 1.46), First REIT (Price/NAV = 1.36) and Mapletree Industrial Trust (Price/NAV = 1.34).
  • Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.67), followed by OUE Comm REIT (Price/NAV = 0.77), Far East Hospitality Trust (Price/NAV = 0.75), EC World REIT (Price/NAV = 0.78) and Starhill Global REIT (Price/NAV = 0.75).
  • Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (10.22%), followed by SoilBuild BizREIT (8.47%), Viva Industrial Trust (8.35%), Cromwell European REIT (8.56%), EC World REIT (8.21%), and Cache Logistic Trust (8.06%).
  • Highest Gearing Ratio are OUE Comm REIT (40.5%), iREIT Global (40.5%) and Soilbuild BizREIT (40.2%).

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 1.37172% to 1.38291%
  • 3 month increases from 1.50409% to 1.50704%
  • 6 month increases from 1.65159% to 1.65446%
  • 12 month increases from 1.84037% to 1.84604%

 

Summary

Fundamentally the whole Singapore REITs is getting near to fair value.  Overall yield for Singapore REIT is still attractive (average yield of 6.64%). However, technically, the REIT index is currently trading on downtrend after breaking down from the bear flag. More down side is expected in the near term. It is time to get our watch list ready if the REIT sectors continue to correct to an attractive entry level.

I will be sharing my analysis on the correlation of US interest rate hike vs REIT sector performance in coming public workshop on June 7, 2018 and 2H Singapore REIT market update sometimes in July. Do subscribe to my mailing list https://mystocksinvesting.com/mailinglist/ if you want to have 1st notification when the registration starts, or check out the workshop / seminar detail here https://mystocksinvesting.com/events/.

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.  https://mystocksinvesting.com/course/private-portfolio-review/

 

See all other relevant  Singapore REITs blog posts here.

 

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