Neo Group’s Delist and how companies with high insider ownership play the game

Click on Neo Group’s Delist and how companies with high insider ownership play the game
for the source.
https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Zhi Rong Tan

Yet another delisting from the Singapore Exchange. On 30 March 2021, Neo Group Limited (SGX:5UJ) … Read more >>

The post Neo Group’s Delist and how companies with high insider ownership play the game first appeared on .

Jamie Dimon says U.S. consumers are ‘coiled, ready to go’ with $2 trillion more in checking accounts

Click on

Jamie Dimon says U.S. consumers are ‘coiled, ready to go’ with $2 trillion more in checking accounts


for the source.
Author:

Many Americans have received three rounds of stimulus checks and enhanced unemployment benefits since the pandemic began, helping forestall a wave of defaults.

GRAB listing on NYSE – LARGEST SPAC Merger to date [As backed by Softbank, Microsoft, Temasek & more]

Click on

GRAB listing on NYSE – LARGEST SPAC Merger to date [As backed by Softbank, Microsoft, Temasek & more]


for the source.
https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Bryan Tan

A household name for most, we remember times when free Grabcar promocodes were an everyday … Read more >>

The post GRAB listing on NYSE – LARGEST SPAC Merger to date [As backed by Softbank, Microsoft, Temasek & more] first appeared on .

5 Singapore REITs trading at their 5 years Price/NAV high

Click on 5 Singapore REITs trading at their 5 years Price/NAV high
for the source.
https://mystocksinvesting.com/wp-content/uploads/2020/10/cropped-squiare-3-32×32.png Author: Marubozu

Despite the Covid-19 pandemic significantly impacting REIT prices, some REITs have rebounded to close to their 5 years Price/NAV high. In this article we will be discussing the 5 S-REITs trading at close to their 5 years high, in terms of Price/NAV, at the time of writing (14 April 2021).

Do note that despite being at their 5 years high (in terms of Price/NAV) this does not mean that the REIT is overvalued. A REIT can be undervalued (<1 Price/NAV) but still be trading at an all-time high. All data is taken from the StocksCafe REIT screener at the time of writing.

 

5 REITs at their 5 years Price/NAV high

Below are the 5 REITs trading at their 5 years high.

Top 5 S-REITs trading at their 5 years high in terms of Price/NAV. Data as of 14th April 2021. Eagle Hospitality Trust values not meaningful due to its NAV drop from 80.87 US cents in Q2 2020 to 17.06 US cents in Q3 2020.

 

REIT Price/NAV Graph and Portfolio Overview

Below are the overview of the REITs. Do note that the NAV value changes every quarter/semi-annually, depending on the data provided by the individual REITs in their results release.

 


ARA Logos Logistics Trust is a REIT comprising of 100% Industrial and Logistics Properties. It has 27 logistics warehouse properties, with 10 in Singapore and the remaining 17 in Australia. It has a total portfolio valuation of S$1,281 million.



Keppel REIT comprises of interests in ten Grade A commercial office assets with 3 located in Singapore (4 after Keppel Bay Tower acquisition), 6 in Australia (Sydney, Melbourne, Brisbane and Perth) and 1 in Seoul, South Korea. It has a total portfolio valuation of S$8,861 million, the largest in this comparison.



Lendlease Global Commercial REIT comprises of a leasehold interest in one retail property in Singapore (313 Somerset) and three freehold office properties located in Milan, Italy. It has a total portfolio valuation of S$1,452 million.



Sabana REIT has a portfolio of 18 industrial buildings located entirely in Singapore. They are divided into 4 categories, namely high-tech industrial, chemical warehouse & logistics, warehouse & logistics, and general industrial. It has a total portfolio valuation of S$840.1 million, the smallest in this comparison.



ParkwayLife REIT is Asia’s largest listed healthcare REIT, with 53 properties. It comprises of 3 Hospitals in Singapore, 1 Medical Office Building in Kuala Lumpur, Malaysia, and the remaining in Japan as Nursing Homes. has a total portfolio valuation of S$2,002 million.


 

Fundamental Ratios

Funamental Ratio comparison between the 5 REITs. Information taken from the StocksCafe REIT screener, using its comparison feature. Values taken on 14th April 2021.

The above table shows the corresponding fundamental ratios of the 5 REITs. Some observations that can be made are shown below:

  • Yield (ttm): The yield of the 5 REITs are diverse, ranging from 3.33% up to 7.05%.
  • Gearing: The Gearing ratios of the REITs range from 33.5% to 39%. One thing that is worth observing is that these 5 REITs, that are trading at close to their 5 years high, none of them have gearing ratios of above 39%.
  • Price/NAV: Despite trading at close to their 5 years high, Keppel REIT, Lendlease REIT and Sabana REIT are slightly undervalued.
    • Some of you might wonder how is Sabana REIT trading at close to its 5 years high in Price/NAV, despite it dropping in price over the past 5 years. The chart below shows Sabana REIT’s price over 5 years.
    • This is because the Net Asset Value (NAV) of Sabana REIT has been dropping over the past 5 years as well. In layman terms, NAV = (Assets – Liabilities) / Total no. of shares. In Q1 2015, each share’s net asset value is S$1.06, but in Q4 2020, it is only S$0.51.

Lease Management

Lease Management comparison between the 5 REITs. Information taken from the StocksCafe REIT screener. Values taken on 14th April 2021.

The above table shows the corresponding lease management values of the 5 REITs. Some observations that can be made are shown below:

  • No. of Properties: ParkwayLife REIT has the most no. of properties, with 54. Sabana REIT is the only REIT in this comparison with a portfolio wholly in Singapore.
  • Occupancy Rate: Sabana REIT has noticeably a lower occupancy rate than the other 4 REITs, at 76.5%.
  • Weighted Average Lease Expiry (WALE): The 2 Industrial/Logistics REITs have lower WALEs at 2.8 years and 3.1 years respectively. The other 3 REITs in the other sectors have WALEs all above 4.9 years.
  • Property Portfolio Value: Keppel REIT has the largest Portfolio value by a large margin at S$8.86 billion.

 

Debt Management

Debt Management comparison between the 5 REITs. Information taken from the StocksCafe REIT screener. Values taken on 14th April 2021.

The above table shows the corresponding lease management values of the 5 REITs. Some observations that can be made are shown below:

  • Weighted Average Debt Maturity (WADM): Sabana REIT has the lowest WADM of only 1.2 years, while the other 4 REITs have a WADM of about 3 years.
  • Interest Cost/Cost of Debt: Lendlease REIT and ParkwayLife REIT have a very low Cost of Debt of less than 0.9%. The other 3 REITs have Cost of Debts hovering around 2 to 3%.
  • Interest Coverage Ratio: Lendlease REIT and ParkwayLife REIT have considerably higher ICRs with 8.5 and 18.1 respectively.  The other 3 REITs have an ICR of around 3 to 4.
  • Unsecured Borrowings: All of Sabana REITs borrowings are secured. 

 

Interested in the StocksCafe REIT screener that is used in the above comparison? Try its features now, and make an informed investment decision in Singapore REITs! 

Want to invest in Singapore REITs but don’t know how to start? Or not happy with your current investment portfolio? Contact Kenny here at kennyloh@fapl.sg.

 

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 an invited speaker of REITs Symposium and Invest Fair. Kenny Loh also offers REIT Portfolio Advisory for a fee. Do contact him at kennyloh@fapl.sg 

The post 5 Singapore REITs trading at their 5 years Price/NAV high first appeared on https://mystocksinvesting.com.

New to Technical Indicators? This tool helps you analyse trends accurately

Click on New to Technical Indicators? This tool helps you analyse trends accurately
for the source.
https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Bryan Tan

Previously Alvin talked about the zero commission trading at Phillip Futures, I will now review … Read more >>

The post New to Technical Indicators? This tool helps you analyse trends accurately first appeared on .

Impacts of Singapore’s low birth rate on our future housing demand

Click on Impacts of Singapore’s low birth rate on our future housing demand
for the source.
https://i0.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

Singapore’s total fertility rate in 2020 fell to a historic low of 1.1. It drops further below the country’s replacement rate of 2.1. Since babies are conceived nine months earlier, low birth rate is the result of fewer conceptions in 2019. Under the financial stress of Covid-19 and family conflict from WFH, we might see… [read more]

The post Impacts of Singapore’s low birth rate on our future housing demand appeared first on Property Soul.