REITs guide in Singapore 2018
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The Ultimate Review Of All The REITs In Singapore And Here’s How You Can Learn To Invest.

Numbers updated as of 8 April 2018

A Quick Recap

A quick recap, in our previous article, we gave an overview of what Real Estate Investment Trusts (REITs) were together with the various different types.

Singapore Seedly REITs-01

In this article, we dive deeper into each individual REIT type available on the Singapore Exchange. For the convenience of our readers, we compile most of the information for you at your convenience below.

TL;DR – Comparing all the REITs in Singapore

  • Top 5 REITs for Dividend Yield: EC World REIT (8.2%), Dasin Retail Trust (8.18%), Viva Industrial Trust (8.54%), Soilbuild Business Space REIT (8.53%), Lippo Malls Indonesia Retail Trust (9.05%)
  • Top 5 REITs for Return On Equity (ROE): Fortune REIT (12.45%), Mapletree Industrial Trust (11.03%), Mapletree Commercial Trust (10.88%), IREIT Global (11.2%), MapleTree Greater China Commercial Trust (11.1%)
  • Industrial REITs on average has the highest dividend yield
  • Industrial REITs has the highest debt-to-equity ratio on average

A guide to all the numbers:

We researched on these numbers and compiled all the REITs listed in Singapore in this article. Numbers can only tell an investor so much, there are definitely more factors affecting the profitability of a REIT down the road.

Part 1: Financial aspect of the REITs
  • Debt-To-Equity Ratio:
    A higher Debt-to-Equity ratio indicates a higher default risk for the company. However, it is in the nature of REITs to borrow money to fund their projects, hence, this should not be the sole number investors should be looking at.
  • Revenue Growth:
    Revenue growth gives a good picture of the rate at which companies have been able to expand their businesses.
  • Return On Equity:
    Measures the profitability of the REITs by revealing how much profit is generated with the money invested. The higher the ROE, the higher the profitability.
Part 2: Valuation aspect of the REITs
  • Dividend Yield:
    Measures how much dividend a company pays out each year in relative to its share price.
  • Price-To-Book Value:
    Measures the market price of share price over the value of company’s assets expressed on the balance sheet. In theory, if the price-to-book value is less than 1, a REIT is trading for less than it’s worth.

Further Reading: REITs in detail

Healthcare REITs

Hospitals, Medical Centers, Nursing and Retirement homes

Average Dividend Yield:  5.49%
Average ROE: 9.17%
Average Price-To-Book Value: 
1.4265
Average Debt/Equity Ratio: 
58.20% 

 First REITParkway Life REIT
Part 1: Financials
Debt/Equity Ratio55.98%60.42%
1-Year Revenue Growth3.72%(0.22)%
3-Year Revenue Growth5.98%3.06%
Return On Equity8.69%9.65%
Part 2: Valuation
P/E Ratio15.30616.696
Dividend Yield6.21%4.77%
Price-To-Book Value1.2631.59

Industrial REITs

Warehouses, Industrial Parks, and Data Centers

Average Dividend Yield: 7.253%
Average ROE: 3.875%
Average Price-To-Book Value:
1.07 
Average Debt/Equity Ratio:
60.32%

 AIMS AMP Capital Industrial REITAscendas REITCache Logistics Trust
Part 1: Financials
Debt/Equity Ratio54.05%55.99%58.34%
1-Year Revenue Growth(0.26)%3.6%0.62%
3-Year Revenue Growth1.34%9.25%10.56%
Return On Equity0.14%6.87%3.26%
Part 2: Valuation
P/E Ratio663.7618.41134.082
Dividend Yield7.63%7.638.07%
Price-To-Book Value1.0141.0141.164
 EC World REITESR-REITFrasers Logistics & Industrial Trust
Part 1: Financials
Debt/Equity Ratio60.69%72.02%45.42%
1-Year Revenue Growth(4.36)%(2.13)%(7.47)%
3-Year Revenue Growth-%3.19%-%
Return On Equity6.6%0.16%7.96%
Part 2: Valuation
P/E Ratio12.059-15.023
Dividend Yield8.2%7.27%6.33%
Price-To-Book Value0.8040.7491.184
 Keppel DC REITMapletree Industrial TrustMapletree Logistics Trust
Part 1: Financials
Debt/Equity Ratio52.08%54.41%66.03%
1-Year Revenue Growth40.26%7.1%5.23%
3-Year Revenue Growth34.58%5.22%5.67%
Return On Equity6.42%11.03%7.59%
Part 2: Valuation
P/E Ratio24.94512.90913.729
Dividend Yield4.94%5.78%6.23%
Price-To-Book Value1.4891.4251.02
 Sabana REITSoilbuild Business Space REITViva Industrial Trust
Part 1: Financials
Debt/Equity Ratio64.05%70.69%70.07%
1-Year Revenue Growth(7.2)%4.54%17.2%
3-Year Revenue Growth(5.31)%7.57%19.43%
Return On Equity(4.75)%(3.98)%5.2%
Part 2: Valuation
P/E Ratio--21.93
Dividend Yield7.88%8.53%8.54%
Price-To-Book Value0.7741.0541.144

Retail REITs

Most Shopping malls and freestanding retail

Average Dividend Yield:  6.56
Average ROE: 7.79%
Average Price-To-Book Value: 
0.909 
Average Debt/Equity Ratio: 
47.64%

 CapitaLand Mall TrustCapitaLand Retail China TrustFortune REIT
Part 1: Financials
Debt/Equity Ratio47.06%47.83%40.13%
1-Year Revenue Growth(1.05)%6.91%2.77%
3-Year Revenue Growth1.18%4.08%7.03%
Return On Equity9.66%9.47%12.45%
Part 2: Valuation
P/E Ratio11.2139.7275.73
Dividend Yield5.37%6.43%5.31%
Price-To-Book Value1.0650.9790.679
 BHG Retail REITFrasers Centrepoint TrustLippo Malls Indonesia Retail Trust
Part 1: Financials
Debt/Equity Ratio41.42%43.40%69.12%
1-Year Revenue Growth5.53%2.53%4.95%
3-Year Revenue Growth6.94%1.56%12.95%
Return On Equity5.41%10.67%5.22%
Part 2: Valuation
P/E Ratio18.30210.50522.02
Dividend Yield7.15%5.43%9.05%
Price-To-Book Value0.9181.0910.919
 Dasin Retail TrustSPH REIT
Part 1: Financials
Debt/Equity Ratio56.92%35.25%
1-Year Revenue Growth68.56%1.7%
3-Year Revenue Growth39.9%7.64%
Return On Equity2.89%6.56%
Part 2: Valuation
P/E Ratio25.58816.142
Dividend Yield8.18%5.56%
Price-To-Book Value0.5691.054

Commercial REITs

Mainly office buildings and management 

Average Dividend Yield:  6.014%
Average ROE: 7.901%
Average Price-To-Book Value: 
0.958 
Average Debt/Equity Ratio:
58.44%

 CapitaLand Commercial TrustFrasers Commercial TrustIREIT Global
Part 1: Financials
Debt/Equity Ratio43.22%58.4%72.75%
1-Year Revenue Growth13.02%(2.79)%1.63%
3-Year Revenue Growth8.72%6.63%69.83%
Return On Equity9.9%8.44%11.2%
Part 2: Valuation
P/E Ratio9.94110.75110.16
Dividend Yield4.71%6.84%7.6%
Price-To-Book Value1.0350.9011.141
 Keppel REITMapleTree Greater China Commercial TrustMapletree Commercial Trust
Part 1: Financials
Debt/Equity Ratio51.67%69.81%58.86%
1-Year Revenue Growth1.73%4.82%25.92%
3-Year Revenue Growth3.24%13.06%15.56%%
Return On Equity3.67%11.1%9.69%
Part 2: Valuation
P/E Ratio23.5858.56112.033
Dividend Yield4.67%6.42%5.21%
Price-To-Book Value0.8370.9451.15
 Manulife US REITOUE Commercial REITStarhill Global REIT
Part 1: Financials
Debt/Equity Ratio53.86%63.55%56.29%
1-Year Revenue Growth13.01%(0.85)%(1.91)%
3-Year Revenue Growth15.91%45.5%-%
Return On Equity8.29%7.43%5.26%
Part 2: Valuation
P/E Ratio11.8211.04514.933
Dividend Yield6.24%6.58%6.52%
Price-To-Book Value1.1230.7790.786
 Suntec REIT
Part 1: Financials
Debt/Equity Ratio56.02%
1-Year Revenue Growth5.09%
3-Year Revenue Growth1.02%
Return On Equity4.03%
Part 2: Valuation
P/E Ratio22.257
Dividend Yield5.35%
Price-To-Book Value0.88

 

Hospitality REITs

Hospitality side of the business, owning properties (serviced apartments and hotels)

Average Dividend Yield:  6.28%
Average ROE: 5.51
Average Price-To-Book Value: 
0.927 
Average Debt/Equity Ratio: 
55.63%

 Ascott Residence TrustCDL Hospitality TrustsOUE Hospitality Trust
Part 1: Financials
Debt/Equity Ratio61.97%50.42%62.96%
1-Year Revenue Growth4.35%12.97%7%
3-Year Revenue Growth11.58%6.99%4.19%
Return On Equity7.6%7.61%5.51%
Part 2: Valuation
P/E Ratio12.12814.58218.974
Dividend Yield6.22%5.46%6.47%
Price-To-Book Value0.7951.1051.044
 Ascendas Hospitality TrustFrasers Hospitality TrustFar East Hospitality Trust
Part 1: Financials
Debt/Equity Ratio56.55%52.54%49.35%
1-Year Revenue Growth3.15%21.86%(4.89)%
3-Year Revenue Growth(0.34)%-(5.21)%
Return On Equity0.84%10.59%0.88%
Part 2: Valuation
P/E Ratio111.2198.96788.462
Dividend Yield7.17%6.73%5.65%
Price-To-Book Value0.9340.890.794

Deeper Reading: Other factors to consider when investing in REITs

The above numbers are just some of the basic numbers one can derive from SGX.

There are definitely a lot more to consider, should one decides to invest a portion of his money on REITs.

As mentioned in the previous article, numbers such as

  • Distribution per Unit (DPU)
  • Occupancy Ratio
  • Gearing Ratio
  • Weighted Average Lease Expiry
  • Funds From Operation (FFO)
  • Interest Coverage

These are some of the more advanced numbers to make better investment decision on REITs. On top of that, it is always good that investors have a healthy habit of reading up on the projects that the companies are working on with their money.

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