Singapore Blue-Chip REITs Latest Earnings: What Investors Should Know
The latest earnings from Singapore REITs are coming in thick and fast.
Since the current financial reporting season started on 1 July, a number of REITs have reported their earnings.
Here, let’s look at the latest financial numbers from the blue-chip REITs (those belonging to the Straits Times Index) and also some soundbites from their REIT managers.
This will be especially useful for investors who are looking for investment opportunities for the long-term amid the COVID-19 pandemic.
TL;DR: Latest Singapore Blue-Chip REIT Earnings
|Ascendas REIT||CapitaLand Commercial Trust||CapitaLand Mall Trust||Mapletree Commercial Trust||Mapletree Industrial Trust||Mapletree Logistics Trust|
(% change year-on-year (YoY))
|Up 14.6% to S$521.2 million||Down 8.1% to S$92.8 million||Down 39.8% to S$114.1 million||Down 10.5% to S$100.3 million||Down 0.5% to S$99.1 million||Up 10.5% to S$132.4 million|
|Net property income |
(% change YoY)
|Up 11.2% to S$388.0 million||Down 9.7% to S$70.8 million||Down 48.9% to S$68.1 million||Down 10.7% to S$78.9 million||Up 0.9% to S$78.7 million||Up 12% to S$118.8 million|
|Distribution per unit |
(% change YoY)
|Down 10.8% to 7.270 Singapore cents||Down 23.2% to 1.69 Singapore cents||Down 27.7% to 2.11 Singapore cents||Not mentioned||Down 7.4% to 2.87 Singapore cents||Up 1% to 2.045 Singapore cents|
(as of 30 June 2020)
|Portfolio occupancy (as of 30 June 2020)||91.5%||95.2%||97.7%||98.2%||91.1%||97.2%|
(Note: Financial numbers for Ascendas REIT are based on the first six months of 2020 while the rest are for the April to June quarter.)
To know what the various metrics mean, you can head to our REITs analysis cheat sheet.
You can also discuss with like-minded investors on the REITs at SeedlyCommunity’s stocks discussion.
Ascendas REIT (SGX: A17U)
Ascendas REIT is Singapore’s first and largest listed business space and industrial REIT.
Here are some key financial numbers from the REIT’s fiscal first-half earnings (six months ended 30 June 2020):
- Gross revenue: Up 14.6% year-on-year (YoY)
- Net property income: Up 11.2% YoY
- Distribution per unit: Down 10.8% YoY to 7.270 Singapore cents
- Gearing: 36.1%
- Portfolio occupancy: 91.5%
William Tay, chief executive of Ascendas REIT’s manager, said:
“In the first half of 2020, Ascendas Reit managed to deliver a steady distributable income despite the difficult operating environment, the provision of rent waivers to our tenants due to the COVID-19 pandemic and the absence of one-off distribution of rollover adjustments. With the enlarged number of Units in issue, DPU declined to 7.270 cents.
We continue to expect challenges in the months ahead which could impact the performance of Ascendas Reit. However, our well-diversified portfolio and tenant base should help us to mitigate the challenges ahead. We will continue to work closely with our tenants to ride out this uncertain period together.”
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust has a portfolio of industrial properties in Singapore and data centres in North America.
Let’s look at the key financial numbers from the REIT’s fiscal first-quarter results (three months ended 30 June 2020):
- Gross revenue: Down 0.5% YoY
- Net property income: Up 0.9% YoY
- Distribution per unit: Down 7.4% YoY to 2.87 Singapore cents
- Gearing: 38.8%
- Portfolio occupancy: 91.1%
Mapletree Industrial Trust said the following in its press release:
“MIT’s large and diversified tenant base with low dependence on any single tenant or trade sector will continue to underpin its portfolio resilience. The long leases in MIT’s data centres in Singapore and North America as well as build-to-suit projects will further strengthen the portfolio’s resilience.”
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust is the first Asia-focused logistics REIT in Singapore listed in 2005.
Here are some key financial numbers from the REIT’s fiscal first-quarter results (three months ended 30 June 2020):
- Gross revenue: Up 10.5% YoY
- Net property income: Up 12% YoY
- Distribution per unit: Up 1% YoY to 2.045 Singapore cents
- Gearing: 39.6%
- Portfolio occupancy: 97.2%
Ng Kiat, chief executive officer of Mapletree Logistics Trust’s manager, commented:
“COVID-19 has accelerated several preexisting structural trends, such as e-commerce growth and supply chain diversification, benefitting the logistics market in Asia Pacific. Underpinned by these trends, the logistics sector has continued to demonstrate resilience. With a quality portfolio and strong regional network, MLT remains well-positioned to navigate the current challenges as well as capture opportunities in the market place.”
It’s nice to see a REIT with all key financial metrics improving on a year-on-year basis, amid the COVID-19 scare.
For investors who are looking for a resilient REIT that has exposure to the e-commerce sector, this could be it.
CapitaLand Commercial Trust (SGX: C61U)
CapitaLand Commercial Trust is Singapore’s first and largest listed commercial REIT.
Here are the key financial metrics from the REIT’s 2020 second-quarter results:
- Gross revenue: Down 8.1% YoY
- Net property income: Down 9.7% YoY
- Distribution per unit: Down 23.2% YoY to 1.69 Singapore cents
- Gearing: 36.4%
- Portfolio occupancy: 95.2%
Kevin Chee, chief executive of CapitaLand Commercial Trust’s manager, said:
“CCT’s 2Q 2020 results reflected the impact of our portfolio repositioning and rental support for tenants amidst COVID-19. Retaining and supporting our tenants through the COVID-19 challenges remains a priority for CCT. To ensure that our portfolio maintains a sustainable path to future growth, we are focused on completing the asset enhancements of Six Battery Road and 21 Collyer Quay as well as the development of CapitaSpring in 2021. With an improved portfolio positioning and enhanced offerings, CCT will be better placed to meet the evolving workspace needs of our tenants in a post-COVID-19 world.”
As an office REIT, CapitaLand Commercial Trust will be directly impacted by the changing landscape of how we work.
With its core and flex strategy, which involves combining a building’s conventional office space (core) and flexible space (flex) to create innovative workplace solutions, it should be able to still stay relevant in the future.
CapitaLand Mall Trust (SGX: C38U)
CapitaLand Mall Trust is the biggest shopping mall owner in Singapore.
Let’s look at the key financial numbers from the REIT’s 2020 second-quarter results:
- Gross revenue: Down 39.8% YoY
- Net property income: Down 48.9% YoY
- Distribution per unit: Down 27.7% YoY to 2.11 Singapore cents
- Gearing: 34.4%
- Portfolio occupancy: 97.7%
Tony Tan, chief executive of the REIT’s manager, gave some operational insights on how things are panning out post-Circuit Breaker:
“Since the start of Phase 2 safe reopening on 19 June 2020, most of our tenants have resumed operations. From then till 5 July 2020, average shopper traffic for the period recovered to 53% of the level a year ago. With further relaxation of measures on certain businesses from 13 July 2020, more tenants have received the permission to operate. Although CMT’s operating performance is still below pre-COVID-19 levels, we are encouraged by the weekly improvements in shopper traffic since reopening.”
With a wide network of retail malls and tenant-friendly management, coupled with its strong balance sheet, CapitaLand Mall Trust should be able to emerge stronger from the pandemic.
Mapletree Commercial Trust (SGX: N2IU)
Mapletree Commercial Trust is a diversified REIT with office and retail assets in Singapore. Its most-prominent asset is VivoCity.
Here are some key financial numbers from the REIT’s fiscal first-quarter business update (three months ended 30 June 2020):
- Gross revenue: Down 10.5% YoY
- Net property income: Down 10.7% YoY
- Distribution per unit: Not mentioned
- Gearing: 33.7%
- Portfolio occupancy: 98.2%
Similar to CapitaLand Mall Trust, Mapletree Commercial Trust shared that phase 2 of the re-opening has been encouraging for its retail side:
“Phase Two lifting of the circuit breaker from 19 June 2020 has begun to take some weight off our retail tenants at VivoCity where we have observed encouraging recovery in shopper traffic and tenant sales. Although the majority of tenants have resumed operations, we believe it will take some time to get back to pre-COVID-19 levels due to continued work-from-home directives, border closures, social distancing measures, as well as disruptions in manpower and global supply chains.”
The office properties in Mapletree Commercial Trust’s portfolio have somewhat helped to mitigate the impact from the retail assets.
This is especially obvious when compared to the pure-play retail REIT CapitaLand Mall Trust’s latest performance.
Choose Your REITs from Seedly REITs Tool
As a REIT investor, on top of exploring the latest financial performance and prospects, we also have to look at a REIT’s latest valuation (price-to-book ratio and distribution yield).
That’s where the Seedly REITs tool can come in to help.
The Seedly REITs tool gives you easy access to important investor information like:
- Unit Price
- Market Capitalisation
- P/B Ratio
- Dividend Yield
So, to choose the best REITs to invest in, do check out our exclusive REITs tool!
Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer may have a vested interest in the REITs mentioned.