Singapore REIT Fundamental Analysis Comparison Table – 5 November 2016

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 764.77 to 730.39 (-4.49%) compare to last post on Singapore REIT Fundamental Comparison Table on Oct 9, 2016. The index has broken the 200D SMA support and this is a bearish signal. However, 200D SMA is still trending up.  We need to see whether this REIT index can move above the 200D SMA again in the coming weeks else Singapore REIT sector will reverse to down trend.  SGX S-REIT (REIT.SI) Index decreases from 1176.60 to 1125.83 (-4.31%).


  • Price/NAV decreases from  1.012 to 0.969 (Singapore Overall REIT sector is slightly under value now) after recent sell off.
  • Distribution Yield increases from 6.87% to 7.07% (take note that this is lagging number). More than half of Singapore REITs (20 out of 39) have Distribution Yield > 7%. High yield REITs mainly from Hospitality Trust and small cap Industrial REIT. Selection of Singapore REITs have become much more important now because not all the high yield REITs has strong fundamental.
  • Gearing Ratio increases from 34.44% to 35.15%.  25 out of 39 have Gearing Ratio more than 35%.
  • Most overvalue is Ascendas iTrust (Price/NAV = 1.692), followed by Parkway Life (Price/NAV = 1.524) and Keppel DC REIT (Price/NAV = 1.36)
  • Most undervalue (base on NAV) is Far East HTrust (Price/NAV = 0.645), followed by Sabana REIT (Price/NAV = 0.652) and BHG Retait REIT (Price/NAV = 0.713).
  • Highest Distribution Yield is Viva Industrial Trust (9.54%), followed by Sabana REIT (9.26%) and BHG Retail REIT (8.99%).
  • Highest Gearing Ratio is Croesus Retail Trust (45.3%), iREIT Global (41.8%), Sabana REIT (41.5%), Cache Logistic Trust (41.2%), Ascott REIT (41.0%) and OUE Commercial REIT (40.8%)


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 decreases from 0.38% to 0.12



  • 1 month increases from 0.62233% to 0.62417%
  • 3 month remains at 0.87242%
  • 6 month increases from 14421% to 1.14530%
  • 12 month increases from 1.31183% to 1.31225%


The Singapore Manufacturing PMI decreased slightly to 50 in October of 2016 from 50.1 in the previous month. A weaker reading was attributed to slower overall factory output and lower employment, though domestic and export orders logged marginal improvements. Meanwhile, the electronics sector rose to 50.8 from 50.3 in September. Manufacturing PMI in Singapore averaged 50.03 from 2012 until 2016, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012. Manufacturing PMI in Singapore is reported by the Singapore Institute of Purchasing & Materials Management, SIPMM.


The Gross Domestic Product (GDP) in Singapore contracted 4.10 percent in the third quarter of 2016 over the previous quarter. GDP Growth Rate in Singapore averaged 6.81 percent from 1975 until 2016, reaching an all time high of 37.20 percent in the first quarter of 2010 and a record low of -13.50 percent in the fourth quarter of 2008. GDP Growth Rate in Singapore is reported by the Statistics Singapore.


Singapore REITs in general is slightly under value after the recent sell off when approaching the US Presidential Election and potential interest rate hike in Dec 2016. Distribution yield for some Singapore REITs with bigger market capitalization is not very attractive. However, there are still opportunities in Singapore REITs with smaller market capitalization. Opportunities present in Hospitality sector as the valuation and yield is attractive but future DPU growth does not have good visibility.

Technically Singapore REITs sector is in bearish territory after breaking down the 200D SMA support. There is little visibility on what is the next movement for Singapore REIT until the US Presidential Election is over and whether US Fed will increase interest rate in Dec 2016.  At the moment, the Singapore REIT Index has higher probability to move side way or down.

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