Singapore REIT Fundamental Analysis Comparison Table – 6 March 2017
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 732.7 to 732.6 (-0.01%) ( compare to last post on Singapore REIT Fundamental Comparison Table on Feb 5, 2017. The index is currently hovering around 200D SMA and moving sideway. FTSE ST Real Estate Investment Trust Index is currently trading within a Rectangle and expected to move within the range between 740 and 700. SGX S-REIT (REIT.SI) Index increases from 1,127.74 to 1,135.36(+0.68%).
- Price/NAV increases from 0.962 to 0.967 (Singapore Overall REIT sector is slightly under value now).
- Distribution Yield decreases from 7.13% to 7.03% (take note that this is lagging number). More than half of Singapore REITs (21 out of 40) have Distribution Yield > 7%. High yield REITs mainly from Hospitality Trust and small cap Industrial REIT, but we must understand the risks while chasing for the high yield. Check out How to spot those Fundamentally strong REIT with attractive yield to build up a Passive Income Portfolio?
- Gearing Ratio decreases from 34.87% to 34.76%. 21 out of 40 have Gearing Ratio more than 35%.
- Most overvalue is Ascendas iTrust (Price/NAV = 1.563), followed by Parkway Life (Price/NAV = 1.452), FIRST REIT (Price/NAV = 1.267) and Keppel DC REIT (Price/NAV = 1.253)
- Most undervalue (base on NAV) is Sabana REIT (Price/NAV = 0.581), followed by Far East HTrust (Price/NAV = 0.643) and Fortune REIT (Price/NAV = 0.667).
- Highest Distribution Yield is SoilBuild BizREIT (9.74%), followed by Cache Logistic Trust (9.02%) and Viva Industrial Trust (8.98%). All these 3 are small Cap Industrial REITs.
- Highest Gearing Ratio is Croesus Retail Trust (46.1%), iREIT Global (41.6%), Sabana REIT (43.2%) and Cache Logistic Trust (43.1%).
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 0.46% to 0.22%.
- 1 month increases from 0.71463% to 0.71538%
- 3 month decreases from 0.96188% to 0.94005%.
- 6 month increases from 1.24700% to 1.24800%
- 12 month decreases from 1.43517% to 1.38000%
The Singapore Manufacturing PMI decreased slightly to 50.9 in February of 2017 from 51 in the previous month. The reading pointed to the to the sixth consecutive expansion in a factory activity, while new orders, exports, and factory output rose at a slower pace. Also, the PMI for electronics sector declined to 51.4 from 51.8 in January. 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.
The GDP in Singapore advanced an annualized 12.3 percent on quarter in the last three months of 2016, recovering from a 0.4 percent contraction in the previous quarter and above earlier estimates of 9.1 percent. It is the strongest growth rate since the first quarter of 2011, mainly due to a rebound in manufacturing (+39.8 percent from -5 percent in Q3). GDP Growth Rate in Singapore averaged 6.86 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.
Singapore REITs sector is currently range bound and FTSE ST REIT index is expected to trade within a range between 700 to 740. 700 support level could be a good level to accumulate some fundamental strong REITs as the valuation base on Price/NAV and Distribution yield can become attractive again. Two questions may interest all the retail investors: WHEN is the right and safe time and WHAT REIT to pick? Check out the next Investing in Singapore REIT course here.
See my Singapore REIT 2017 Market Outlook here.
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