How Do We Develop New Dividend Investing Strategies for Early Retirement?

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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Christopher Ng

Finance is an infinitely dynamic field and no investment course can survive the progress of … Read more >>
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Singapore REIT Price / NAV Range Chart July-2019

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Author: Marubozu

Original post from http://mystocksinvesting.com

Singapore REIT Price / NAV Range Chart base on July 1, 2019 Singapore REITs Table.

 

See last Singapore REITs Price/NAV here to see the changes.

Disclaimer: This chart is NOT a recommendation to buy or sell. Do NOT use it if you don’t understand how to interpret it.

 

Check below on other events:

http://mystocksinvesting.com/course/singapore-reits-investing/REITs Investing Course 

http://mystocksinvesting.com/course/private-portfolio-review/REITs Portfolio Advisory 

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Prime US REIT IPO Prospectus and Summary

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Author: Marubozu

Overview of Prime US REIT

Prime US REIT is a Singapore REIT established with the principal investment strategy of investing, directly or indirectly, in stabilised income-producing office assets, and real estate related assets, in the United States of America (“U.S.”).

Prime US REIT’s key objectives are to provide Unitholders with regular and stable distributions and to achieve long-term growth in distribution per Unit (“DPU”) and net asset value (“NAV”) per Unit, while maintaining an appropriate capital structure.

The initial portfolio of Prime US REIT (the “IPO Portfolio”) consists of 11 office properties (the “Properties”) located across the United States, with an Appraised Value of US$1,222 million and an aggregate NLA of 3.4 million sq ft. The aggregate purchase consideration payable by Prime US REIT for the IPO Portfolio is US$1,222 million.

 

Prime poised to be third US-focused REIT to list on SGX Mainboard in 2019

Read more at: https://www.dealstreetasia.com/stories/prime-us-reit-sgx-mainboard-142301/

 

  • Type = US Office (Class A)
  • Sponsor = KBS Asia Partner Pte Ltd
  • Total Units Offered = 335,203,200
  • Portfolio = 11 Freehold Class A Office
  • Portfolio Size = US$1.23 Billion
  • IPO Offer Price = US$0.88
  • NAV per unit = US$0.84
  • Price / NAV = 1.0476
  • Distribution Yield = 7.4% (2019), 7.6% (2020)
  • Distribution Policy = 100% for 2019 & 2020. At least 90% thereafter. Semi Annual Payout.
  • Occupancy Rate = 96.7%
  • WALE = 5.5 Years
  • Gearing Ratio = 37.0%
  • WADM = 5.6 Years
  • Offer Closing Date: July 15, 2019, 12pm
  • Listing Date: July 19, 2019, 2pm
  • Prime US REIT IPO Prospectus

 

Compared to Manulife US REIT IPO

Compare to other Singapore REITs here.

 

 

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Singapore REIT Fundamental Analysis Comparison Table – 1 July 2019

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Author: Marubozu

Technical Analysis of FTSE ST REIT Index (FSTAS8670)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) broke out from the 10 years resistance at 875 with significant increase in trading volume. The REIT index increased from 858.67 to 916.95 (+6.78%) and  as compared to last post on Singapore REIT Fundamental Comparison Table on June 3, 2019.

The REIT index is entering in an uncharted territory after breaking new high and may head towards to 1000 points based on projection of 161.8% Fibonacci level. Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP. However, the REIT index may go for a short term pause before moving higher.

 

Fundamental Analysis of 39 Singapore REITs

The following is the compilation of 39 REITs in Singapore with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio. This gives investors a quick glance of which REITs are attractive enough to have an in-depth analysis. The 2 new IPO ARA US Hospitality Trust and Eagle Hospitality Trust are not included in this table due to insufficient data points.

  • Price/NAV increases from 1.02 to 1.07 (Singapore Overall REIT sector is over value now).
  • Distribution Yield decreases from 6.51%  to 6.22% (take note that this is lagging number). About 33.3% of Singapore REITs (13 out of 39) have Distribution Yield > 7%.
  • Gearing Ratio remains at 34.9%. 22 out of 39 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy. Note: The limit of gearing ratio for REITs listed in Singapore Stock Exchange is 45%.
  • The most overvalue REIT is Parkway Life (Price/NAV = 1.64), followed by Ascendas REIT (Price/NAV = 1.52), Keppel DC REIT (Price/NAV = 1.59) and Mapletree Industrial Trust (Price/NAV = 1.48), Mapletree Logistic Trust (Price/NAV = 1.36), Frasers Logistic & Industrial Trust (Price/NAV = 1.33) and CapitaMAll Trust (Price/NAV = 1.31)
  • The most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.65), followed by OUE Comm REIT (Price/NAV = 0.71) and Far East Hospitality Trust (Price/NAV = 0.78).
  • The Highest Distribution Yield (TTM) is Sasseur REIT (8.59%) ,  followed by First REIT (8.35%), SoilBuild BizREIT (8.39%),  Cromwell European REIT (8.54%) and Lippo Mall Indonesia Retail Trust (8.04%).
  • The Highest Gearing Ratio are ESR REIT (42.0%), Far East HTrust (39.9%) and OUE Comm REIT (39.4%) and SoilBuild BizREIT  (39.3%)
  • Top 5 REITs with biggest market capitalisation are Ascendas REIT ($9.7B), CapitaMall Trust ($9.7B), Capitaland Commercial Trust ($8.1B), Mapletree Commercial Trust ($6.0B) and Mapletree Logistic Trust ($5.7B)
  • The bottom 3 REITs with smallest market capitalisation are BHG Retail REIT ($354M), Sabana REIT ($484M) and iREIT Global REIT ($485M)

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 decreases from 1.88538% to 1.88450%
  • 3 month decreases from 2.00338% to 2.00192%
  • 6 month decreases from 2.06215% to 2.06017%
  • 12 month remains at 2.18675%

Based on current probability of Fed Rate Monitor,  the probability of keeping the interest rate at 2.25-2.50% is 0%! This means US Fed Reserve may cut cut the interest rate of 50 bps to 1.75-2.00% by end of this year!

Summary

Fundamentally the whole Singapore REITs is over value now based on simple average on the Price/NAV. The big cap REITs are getting quite expensive and the distribution yield are not so attractive currently. Most of the DPU yield for big cap REIT is below 5% now. The yield spread between big cap and small cap REIT remains wide. This indicates value picks only in small and medium cap REITs.

Yield spread (reference to 10 year Singapore government bond of 2.015%) has tightened from 4.448% to 4.205%. DPU yield for a number of small and mid-cap REITs are still very attractive  (>8%) at the moment.  Some small and medium size REITs are starting to move up due to attractive risk premium compared to big cap REITs.

Technically, the REIT index is trading in a bullish up trend. This bullish sentiment may probably push the index further up supported by an increasing trading volume caused by the institutional fund inflow into Singapore REITs. In addition, Singapore REITs may take advantage of the low interest rate environment to take on more debt to grow the current portfolio.

 

 

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