Singapore REIT Fundamental Analysis Comparison Table – 1 Oct 2018

Post author:Marubozu
Post published:October 1, 2018

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 808.04 to 802.97 (-0.63%) as compared to last post on Singapore REIT Fundamental Comparison Table on Sept 2, 2018. The REIT index continues to trade within a tight range between 800 and 820 and is currently forming a Symmetrical Triangle (a medium term consolidation chart pattern).

There are two chart patterns observed in this FTSE ST REIT Index. Head and Shoulders pattern is the trend reversal pattern, this is a bearish pattern. Symmetrical Triangle is a consolidation pattern, i.e. moving sideway. Thus, Short to Medium Term Singapore REIT direction: Side way to Down.

Fundamental Analysis

Price/NAV decreases from to 1.00 to 0.99 (Singapore Overall REIT sector is slightly under value now).
Distribution Yield increases from 6.67% to 6.77% (take note that this is lagging number). About one third of Singapore REITs (17 out of 40) have Distribution Yield > 7%.
Gearing Ratio stays at 34.6%. 22 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 = 1.54), followed by Keppel DC REIT (Price/NAV = 1.36), Ascendas REIT (Price/NAV = 1.30) and Mapletree Industrial Trust (Price/NAV = 1.34).
Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.58), followed by Starhill Global REIT (Price/NAV = 0.77), Far East Hospitality Trust (Price/NAV = 0.73), OUE Comm REIT (Price/NAV = 0.67) and EC World REIT (Price/NAV = 0.77).
Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (11.19%), followed by SoilBuild BizREIT (8.91%), Viva Industrial Trust (8.31%), Cromwell European REIT (8.14%), EC World REIT (8.49%), Sasseur REIT (8.28%) and Cache Logistic Trust (8.25%).
Highest Gearing Ratio are Viva Industrial Trust (41%), Far East HTrust (40.3%) and OUE Comm REIT (40.3%).

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 1.50784% to 1.51200%
3 month increases from 1.63239% to 1.63740%
6 month increases from 1.75000% to 1.75300%
12 month increases from 1.95692% to 1.96141%

US Fed has increased the interest rate to 2.25% on Sept 26, 2018. There is no knee jerk reaction because FTSE ST REIT index has already priced in rate hike. Next watch is the rate hike in Dec 2018. The current probability of interest rate hike to 2.5% is 74.4%.

Summary

Fundamentally the whole Singapore REITs is slightly under value now. Overall yield for Singapore REIT is getting attractive (average yield of 6.77%). Yield spread (reference to 10 year Singapore government bond) has compressed to 4.238% (compared to previous month of 4.29%). DPU yield for a number of small and mid cap REITs are quite attractive (>7%) at the moment. However, technically, the REIT index is forming a Head and Shoulder trend reversal chart pattern, and currently trading side way in a symmetrical triangle pattern waiting for the breakout. More down side is expected if the 800 support level is broken. Small and medium cap REITs have reached an attractive entry level and investors can do some selective shopping now.

See all other relevant Singapore REITs blog posts here.

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/

Finally I have sometimes to conduct the REITs Investing Course again in this coming Oct 2018.

Please check out the detail here and register online.

Investing in Singapore REITs

Suntec REIT Fundamental & Technical Analysis

Post author:Marubozu
Post published:June 26, 2017

Suntec REIT April 2017

Suntec REIT Fundamental Analysis

Last Done Price = $1.85
Market Cap = $4.7 B
NAV = $2.12
Price / NAV = 0.87 (13% Discount)
Price / NAV (High)= 0.97
Price / NAV (Low) = 0.73
Distribution Yield (TTM) = 5.44%
Gearing Ratio = 37.7%
WALE (Retail) = 2.27 Years
WALE (Office) = 4.02 Years
WADM = 2.56 Years
Occupancy Rate (Retail) = 98.0%
Occupancy Rate (Office) = 98.9%
Other Singapore REITs Comparison Table

Suntec REIT Stock Chart & Technical Analysis

Suntec REIT is s currently trading in an uptrend channel but will be reaching the previous high of $2.00 soon.

Singapore REITs Office Sector Comparison

Check out longest running Singapore REITs Hands on Course & Training here.

Click here to find out Singapore REITs Portfolio Advisory

Singapore REIT Fundamental Analysis Comparison Table – 5 June 2016

Post author:Marubozu
Post published:June 5, 2016

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 734.98 to 717.26 (-2.41%) compare to last post on Singapore REIT Fundamental Comparison Table on May 1 , 2016. The index is just barely staying above 200D SMA (but sloping down) and forming a Head and Shoulder (a potential reversal pattern) with 200D SMA acts as the neckline support. Breaking this neckline support will probably send the index down to 660-670 region. SGX S-REIT (REIT.SI) Index decreases from 1127.56 to 1102.94 (-2.18%)

Price/NAV decreases from 0.965 to 0.948 (Singapore Overall REIT sector is under value now)
Distribution Yield increases from 7.1% to 7.25% (take note that this is lagging number). More than half of Singapore REITs (20 out of 38) have Distribution Yield > 7%. Current yield is attractive (for certain REITs only) but dangerous to make investing decision purely base on the yield. Past performance does NOT equal to future performance.
Gearing Ratio decreases from 34.92% to 34.76%. 24 out of 38 have Gearing Ratio more than 35%.
Most overvalue is Parkway Life (Price/NAV = 1.467), followed by Ascendas iTrust (Price/NAV = 1.399).
Most undervalue (base on NAV) is Far East HTrust (Price/NAV = 0.656), Fortune REIT (Price/NAV = 0.676), followed by Sabana REIT (Price/NAV = 0.695).
Higher Distribution Yield is Lippo Malls Trust (9.91%) followed by Cache Logistic Trust (9.65%)
Highest Gearing Ratio is Croesus Retail Trust (46.2%), iREIT Global (43.1%) and OUE Commercial Trust (40.5%)
Note: Manulife US REIT is added.

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 Average Overnight Interest Rate

The benchmark interest rate in Singapore was last recorded at 0.23 percent. Interest Rate in Singapore averaged 1.67 percent from 1988 until 2016, reaching an all time high of 20 percent in January of 1990 and a record low of -0.75 percent in October of 1993. Interest Rate in Singapore is reported by the Monetary Authority of Singapore.

Singapore Interest Rate increases from 0.13% to 0.23%

1 month increases 0.73701% to 0.75634%
3 month increases from 1.00000% to 1.00192%
6 month increases from 1.23521% to 1.23863%
12 month increases from 1.37163% to 1.37375%

Singapore Manufacturing PMI

The Singapore PMI was unchanged at 49.8 in May of 2016 from the previous month, posting its eleventh consecutive month of contraction. While new orders (49.7 from 49.8 in April) and employment (49.1 from 49.3) continued to fall, factory output increased for the first time in 11 months (50.1 from 49.9). Manufacturing PMI in Singapore averaged 50.13 from 2012 until 2015, 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.

Fundamentally Singapore REITs in general, the valuation and distribution yields are still attractive The US Fed’s rate hike fear may be already priced in as it has been dragged for too long. Most REITs have already prepared for it by actively managing their debts. Technically Singapore REITs index is probably moving side way or down base on the chart patterns (Rectangle and Head & Shoulder). Healthcare and sub-urban retail malls are resilient but Industrial, Office and Hospitality sectors are facing headwinds. Find out Which Singapore REIT to Buy, Which Sectors to consider, and When is the Right Time to Buy in the next Singapore REITs Investing class.