Singapore REITs Earnings For February 2024
Updated: May 3
Here are the REITS that have reported their earnings or business updates in February 2024.
You can skip to the respective REITs that you are interested in by clicking on the name:
In 2024, I will analyse every single listed REIT counter in Singapore. You can assess my independent analyst report on my telegram channel and stay informed with future REIT analysis and earnings updates.
ARA US Hospitality Trust
ARA US Hospitality Trust announced their FY 2023 results on 22 of Feb of which:
What is positive:
Higher gross revenue (3.8% Y.O.Y) and net property income (15.1% Y.O.Y) from better operating performances and lower taxes.
DPU increased by 12.3% Y.O.Y
What is negative:
Aggregate leverage worsen to 41.5%
I’ve no comments at the moment as I’ve not covered ARA US Hospitality Trust yet.
CapitaLand Ascendas REIT
CapitaLand Ascendas REIT announced their FY 2023 results on 01 of Feb of which:
What is positive:
Higher gross revenue (9.4% Y.O.Y) and net property income (5.6% Y.O.Y) from the contribution of acquisition and higher occupancy rate
Average portfolio rent reversion was 13.4% for lease renewed in FY 2023
What is negative:
Lower distribution per unit (-4%) as a result of higher cost of borrowing and larger unit base
Capital management deteriorated slightly largely due to a higher interest rate environment
Portfolio revaluation is not even as business space and life sciences experienced a decline of 6.5% which is largely offset by valuation increase for industrial and data centres (3.1%) and Logistics (2.3%)
I’ve no comments at the moment as I’ve not covered CapitaLand Ascendas REIT yet.
CapitaLand Integrated Commercial Trust
CICT announced their FY 2023 results on 06 of Feb of which:
What is positive:
DPU increase 2.1% Y.O.Y driven by sound operational performances, pro-active portfolio management and prudent cost management
Higher gross revenue (8.2% Y.O.Y) and net property income (7.0% Y.O.Y) from the contribution of acquisition and higher occupancy rate
Transformation of CQ @ Clarke Quay is expected to be completed in 2Q 2024 which will contribute to FY 2024 performances
What is negative:
Performances from overseas properties is dragging down the overall performance of CICT
I’ve no comments at the moment as I’ve not covered CapitaLand Integrated Commercial Trust yet.
Cromwell European REIT
Cromwell European REIT announced their FY 2023 results on 26 of Feb of which:
What is positive:
Operations remained resilient as portfolio occupancy remained high at 94.3% and rental reversions remained positive on new leases and CPI indexation growth for existing leases.
The management is currently ahead of its asset sales program and is divesting its properties at a premium to valuation.
No debt refinancing requirements in 2024 should keep borrowing costs in check in the next 12 months
What is negative:
DPU experienced a decline of 8.7% Y.O.Y as a result of higher financing cost
Portfolio valuation is expected to remain depressed or at worst, deteriorate due to economic headwinds in Europe. This may put pressure on the management’s ongoing asset rejuvenation implementation.
My stance on Cromwell had remained unchanged though I must say the numbers for FY 2023 came in better than what I anticipated.
Digital Core REIT
Digital Core REIT announced their FY 2023 results on 01 of Feb of which:
What is positive:
Resolution was made over the bankruptcy of its second largest customer of which the series of transactions was closed in January 2024
The acquisition of a 10% stake in a freehold facility in Japan was completed in November 2023 which will contribute to the performance in FY 2024
Pro-forma aggregate leverage is healthy at 33.5%
What is negative:
Gross revenue (-4.8% Y.O.Y) and Net Property Income (-9.1%) deteriorated
Lower distribution per unit (-7%) due to poor overall performances
I’ve no comments at the moment as I’ve not covered Digital Core REIT yet but from first glance, investors should pay attention to their tenant concentration risk given that the top 5 tenants account for over 90% of Digital Core REIT’s gross income and these tenants are not “financially indestructible”
ESR LOGOS REIT
ESR LOGOS REIT announced their FY 2023 results on 01 of Feb of which:
What is positive:
Gross revenue (12.6% Y.O.Y) and Net Property Income (11.8% Y.O.Y) increased due to full-year contributions from the merger in April 2022 and acquisitions in October 2022
No refinancing risking risk in 2024 and a healthy pro-forma gearing ratio of 35.7% due to refinancing and fundraising activities in anticipation of future portfolio rejuvenation
What is negative:
Lower distribution per unit (-14.5%) due to new units issued (+27.3%) for the equity fund with proceeds planned for future development
No changes in view on ESR LOGOS REIT. While bottom line performance is downright bad, it is not that far off from expectations given that ESR is going through a massive scale portfolio rejuvenation.
While the management has no track record in their ability to pull off a yield accretive portfolio rejuvenation, I think it is worthwhile keeping a look out on what the future holds for ESR Logos to determine If it is worth investing in the future.
Frasers Hospitality Trust
Frasers Hospitality Trust REIT announced their 1Q 2024 results on 01 of Feb of which:
What is positive:
RevPAR of all countries were higher Y.O.Y except for SG & UK
International tourism is expected to recover to pre-pandemic levels in 2024 thereby providing a higher upside in occupancy rate
What is negative:
SG RevPAR decreased 25.7% Q.O.Q and 16.6 Y.O.Y due to the easing of pent-up demand and the absence of large-scale events (i.e. F1)
Capital management ratio worsened slightly due to the impact of a higher cost of borrowing environment
As I’ve just covered FHT, my stance on this counter is that I think investors can consider investing in FHT as a potential recovery play. However, there are a few key considerations - i.e declining minimum master lease rental - that investors should pay attention to. You can read more about it in the analyst report below.
Far East Hospitality Trust
Far East Hospitality Trust REIT announced their FY 2023 results on 14 of Feb of which:
What is positive:
Strong recovery in DPU (25.1% Y.O.Y), Gross revenue (27.8% Y.O.Y) and Net Property Income (27.7% Y.O.Y) at the back of a combination of both higher occupancy rate and higher average daily rate.
DPU had climbed above pre-pandemic 2019 levels
No refinancing requirements in 2024 and a very healthy gearing ratio (31.3%)
What is negative:
-
No changes in view on Far East Hospitality Trust but investors should pay attention to the DPU from operations in the coming year as the recent DPU is supported partially by non-operational items such as management fees paid in units and divestment gains, thereby making intrinsic value calculations trickier.
Lendlease Global Commercial REIT
Lendlease REIT announced their 1H 2024 results on 01 of Feb of which:
What is positive:
Healthy gross revenue (17.9% Y.O.Y) and Net Property Income (22.2% Y.O.Y) due to improved operating performance and recognition of supplementary rent from lease restructuring with Sky Italia (Excluding supplementary rent – GR increased by 5.1%)
No refinancing risks on committed debt facilities until FY 2025
What is negative:
DPU decreased by 14.5% Y.O.Y as a result of higher borrowing cost
No changes in view on Lendlease Global Commercial REIT. The lease restructure for Sky Complex in Milan brings about pros and cons that, in my opinion, kind of cancel out each other. The supplementary rent from the lease restructuring should be sufficient to tide the impact on short-term performances as the manager redesigns the third building in Q1 2024 and finds tenants.
Manulife US REIT
Manulife US REIT announced their FY 2023 results on 08 of Feb of which:
What is positive:
Resilient occupancy rate, gross revenue and Net Property Income.
No refinancing is needed in 2024
What is negative:
Distributable income decreased by 15.5% Y.O.Y as a result of higher borrowing costs and property expenses
Aggregate leverage continued to be too high (58.3%) and portfolio valuation continued to suffer a decline (-8% from June 2023)
I’ve no comments at the moment as I’ve not covered Manulife US REIT – which has halted distribution until 31st December 2025.
Parkway Life REIT
Parkway Life REIT announced their FY 2023 results on 01 of Feb of which:
What is positive:
Healthy gross revenue (13.5% Y.O.Y) and Net Property Income (14.1% Y.O.Y) due to contribution from acquired properties in 2022 and 2023 as well as higher rent under master lease agreements
DPU increased by 2.7% Y.O.Y due to improved performances
Capital management position remains rock solid
What is negative:
-
No changes in view on Parkway Life REIT. I strongly believe that Parkway Life REIT continues to be one of the best REITs in Singapore. Unfortunately, the only issue is concerning the valuations which is the main thing that is holding me back from starting a position.
Sasseur REIT
Sasseur REIT announced their FY 2023 results on 21 of Feb of which:
What is positive:
Healthy gross revenue (10.7% Y.O.Y) due to a strong rebound in total outlet sales (31.9% Y.O.Y)
The occupancy rate exceeded the pre-COVID rate and stands at 97.6%
Capital management position remains rock solid
What is negative:
DPU decreased by 4.6% Y.O.Y largely due to foreign exchange losses against a strong SGD. Excluding the impacts of foreign exchanges, the DPU would have increased by 4.1% Y.O.Y.
I’ve no comments at the moment as I’ve not covered Sasseur REIT
United Hampshire US REIT
United Hampshire US REIT announced their FY 2023 results on 22 of Feb of which:
What is positive:
Healthy gross revenue (7.1% Y.O.Y) and net property income (7.6% Y.O.Y.) growth are supported by rent reversion and contribution from Upland Square.
Portfolio valuation had increased by 4.7% as operating performances and occupancy remained solid
No refinancing requirement until November 2026
What is negative:
DPU decreased by 18.53% Y.O.Y largely due to lower DPU from operation and also the fact that their management fees are paid in cash instead of units
I’ve no comments at the moment as I’ve not covered United Hampshire US REIT
Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).
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Disclaimer:
This article is meant to be the opinion of the author
This article is for information purposes only
This article should not be seen as financial advice
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