With access to properties and relatively good yields, Singapore investors enjoy investing in REITs. Given that the low-interest-rate environment is here to stay, REITs continue to be able to refinance their debt at attractive levels. The one thing REIT investors need to be watchful about is how COVID-19 will change the way we live, work and play – as these will affect the various property types differently and also in different geographic regions. Even one year after COVID-19 was first reported, hospitality REITs continue to be impacted. Meanwhile, logistics, data centre and healthcare REITs are more relevant than ever. Read Also: [2020 Edition] Complete Guide To Start Your REITs Investing Journey In Singapore How Singapore REITs Performed In 1st Quarter 2021 To get a broad overview of h

A year has passed since I last wrote about Mapletree North Asia Commercial Trust (MNACT); check it out here. Back then, MNACT was hit with a double whammy in the form of Hong Kong protests followed by the Covid-19 pandemic. The Reit took a tumble and closed at $0.790 in 14th May 2020. Today, the dust has settled a little and it closed at $1.09 as of 29th Apr, a YTD return of 8.3%. Despite the price improvement, I believe that better days are ahead for this Reit. As I have done a thorough analysis in my previous blog post, I won’t go so in-depth this time around; instead, I will revisit my valuations and share my thoughts on the Gangnam property acquisition. Similar to last year, I will be using Sum of the Parts valuation and Discounted Dividend Model to determine its intrinsic value. As

2020 was a precarious year for property owners. Globally, travel has grinded to a halt, impacting hospitality properties. Even Retail, office and industrial properties have been affected to varying degrees, given the strict COVID-19 management measures. 2020 also feels like the harbinger of the new normal – accelerating trends to an extreme level. We already knew work-from-home was on the rise, online shopping growth was outpacing sales in brick-and-mortar stores, food delivery services were taking over F&B outlets and more. For REIT owners, distribution income was affected due to various countries implementing some form of cost sharing initiatives as shutdowns and “circuit breakers” we enforced. More than that, REIT investors also have to consider the longer term impacts of COVI

Basic Profile & Key StatisticsMapletree North Asia Commercial Trust (MNACT) previously known as Mapletree Greater China Commercial Trust (MGCCT), renamed after completion of Japan properties acquisition in May 2018. MNACT invests in both retail and office properties.Lease ProfileOccupancy is very high at 99.3%. WALE is short at only 2.6 years where the highest lease expiry of 26.9% falls in FY 22/23. 16.4% of its income received in JPY. Weighted average land lease expiry is short at 39.81 years.Debt ProfileGearing is slightly high at 39.6%. Cost of debt is low at 2.2% with 76.9% of unsecured debt. Fixed rate debt of 76% is slightly lower than SREITs median level. Interest coverage ratio is low at 3.2 times. WADE is moderate at 3.05 years, where highest debt maturity of 24% falls in the

Basic Profile & Key StatisticsMapletree Logistics Trust (MLT) listed on 28 July 2005, which is just nice 15 years ago. MLT invests in logistics properties in various countries like Singapore, Hong Kong, Japan, China, Australia, South Korea, Malaysia, and Vietnam. MLT is sponsored by Mapletree Investments Pte Ltd.Lease ProfileBoth occupancy of 97.2% and WALE of 4.3 years are at healthy level. The highest lease expiry of 24.2% falls in FY21/22. Income in SGD/major currencies is low at 53.7%., which means around 46.3% of income received in non SGD or major currencies. Weighted average land lease expiry is short at 51.41 years.Debt ProfileGearing ratio is slight high at 39.6%. Cost of debt is low at 2.3% despite high 90.5% of unsecured debt. Interest cover ratio is high at 4.8 ti

Hi all, this is really a long post (warning), here are the subtopics I will be discussing.History of MNAC TrustDetermine the Discount Rate via Capital Asset Pricing Model (CAPM)Determining Net Profit Margin (NPI)Derive the ratio of NPI to Distributable Income to ShareholdersAnalysis of Japan Properties Acquired in 2018Analysis of MBP and OPB (Japan Properties Acquired in Dec 2019)Analysis on Sandhill PlazaAnalysis on Gateway PlazaAnalysis of Festival WalkSumming up altogether+ Intrinsic Value1. History of MNAC TrustFestival WalkFestival walk was developed jointly in 1998 by Swire and Citic Pacific and back then it was once the biggest shopping mall in HK once opened. It was then owned by Swire Properties and bought over by MNAC’s current sponsor Mapletree Investments @ 18.8 Billion so Sw

Now, all of us should aware that government had announced for a lot workplaces to be closed on Tuesday and school to closed on Wednesday until 4th May. There are quite some numbers of companies are exempted though. From what I see, this closure is more on retail and office instead of industry and logistics.Extracted from Ministry of Trade & Industry Facebook PageDue to this COVID-19, hospitality REITs get the first impact, people couldn't travel due to travel restrictions imposed by different countries. This followed by retail REITs which affected due to tourism, social distancing and now closure of non-essential services. Office REIT would be affected too, though some can be mitigate with "work from home" practice. If this situation continue, eventually industrial and logistics w

Based on 4Q 2019 Result. Click to Enlarge* Ascendas India Trust and Dasin Retail Trust are Business Trusts.The above table is extracted from spreadsheet in SREITs Data page.Dividend Yield:YieldAverageMedianLowestHighestHealthcare8.10%8.10%4.34%11.86%Retail9.16%8.32%5.48%18.13%Office8.18%7.55%4.97%12.02%Hospitality17.49%11.35%9.4%42.71%Industrial8.37%7.66%3.54%13.4%Logistics9.52%10.43%5.07%12.14%* Based on REIT Major SectorFinancial Metrics:Financial MetricsUnitAverageMedianLowestHighestPrice/ NAVtime0.790.710.151.91Market Cap, BS$2.00B0.96B0.17B10.04BProperty Yield (Annualized)%5.895.843.399.30Distribution on Management Feestime8.378.343.9719.02Distribution on Capital (Annualized)%4.114.091.605.64Distribution Margin%52.3554.9821.1771.32* SREITs in Foreign Currencies converted to

Another 2 more days, and we will enter 2020. For the investors, looking back at 2019, it has been a year filled with market excitements and the ever erratic Twitter messages from Mr Trump which most of the time causes Mr Market to react.My overall portfolio performance as follow:Dividend received = $16,800Profit from sale of stocks = $14,000Total profit 2019 = $30,800Below are my worst performing counter:SIA Engineering (-25%)Sing Shipping (-15%)Sunningdale Tech (-20%)Below are my best performing counter:UMS (40%)YZJ (22%)Mapletree North Asia Commercial Trust (19%)ComfortDelgro (18%)My transactions for 2019, I had added the following stocks from the last 2 weeks:HongKong LandGenting SGYZJSilverLakesSingapore O&GMoving into 2020, let us all HUAT together ... ... :)