How to Come Out a Basic REITs Analysis Summary

After previous post about data collection, now I would like to share out how to use those data to generate a Basic REITs Analysis Summary through Google Spreadsheets. I will use 3 REITs examples, which are SPH REIT from previous post, First REIT and Ascott Residence Trust. This summary would require consolidation of a few google spreadsheets that I have shared previously. Below are the post of spreadsheets used, I would suggest you to go through first before you continue this post:i) How to Create Your Own Basic REITs Screenerii) Relative Valuation for REITs.iii) How to DIY a REITs Data Collection Spreadsheet...

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Consolidation of SREIT Related Sites

When I start investing in SREITs, I could not find a place that consolidates all the SREITs related sites. Even today, I still could not find such site. I believe this is frustration that REIT investors are facing. Now, instead of waiting, I have decided to consolidate one. Since a lot of sites cover topics more than REITs, I would consolidate based on the following criteria:i) Have a dedicate “REIT” page to link with REIT postsii) Contain at least 5 REIT postsiii) Latest REIT post is within 6 months Sites:1) Dollars and Sense – REITs2) Financial Horse – REIT &...

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How to DIY a REITs Data Collection Spreadsheet

A journey of a thousand miles begins with a single step, looking back, I have posted for total 12 topics about REITs, which you could find in REITs Investing page on top section of my blog. And now maybe is time to consolidate all ideas and put in action for data collection. Idea + Action = Result Before we start, let’s summarize what data to be collected:i) Debt Profile of REITs– Gearing– Interest Cover Ratio– Cost of Debt– Fixed Debt %– Unsecured Debt %– Weighted Average Debt Maturity– Highest % of Debt Maturity in Same Year ii) Lease Profile of REITS–...

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Growth Information of REITs

Often for growth profile of REITs, we look at both DPU growth and NAV growth, but are there any other metrics growth that we could look into from Basic Financial Metrics of REITs and Uncommon Financial Metrics of REITs ? Today, let’s try to explore this.1) DPU GrowthREITs could increase its DPU through organic growth or inorganic growth. Organic growth means growth without acquisition of properties, could be through positive rental reversion, increase occupancy, increase REVPAU, AEI (Asset Enhancement Initiative), etc. Inorganic growth is growth either through acquisition or development of properties. Below is list of top 5 REITs that have most...

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Relative Valuation for REITs

Relative Valuation is a method to compare a companies value to other companies by using multiples. One of the popular relative valuation multiples is price to earning ratio (P/E ratio). However, P/E ratio is not applicable to REITs as its assets are heavily in investment properties and revaluation would skew the earning. For REITs, commonly investor would apply the concept of reversion to mean to relative valuation multiples like P/NAV, yield or yield spread (introduced by ProButtefly). There are a few sites that you could refer for detail:1) Invest For Yourself – CapitaLand Retail China, my latest target!2) My Stock Investing – Singapore...

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Reflection after 3 Months of Blogging

This would be a short post, which I would to like to jot down my feeling after 3 months of blogging. Since this year January, I have been consistently publishing post every Friday. Sometimes, due to work and personal stuff, I find it difficult to squeeze time for writing. However, when I have time, I would scratch my head and take a long time to think of what topic to write. Not easy to consistently thinking of new idea to write Now that I tried blogging, I’ve truly experience that this is not an easy work. Maybe for some...

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Outstanding Shares of REITs

If you are a REITs investor, you would notice that almost all REIT outstanding shares increase over time. The commoncontributor to this increase is due to payment of fees in units instead of cash, this is usually in small volume. Share placement by either private placement, preferential offer or rights issue is another major contributor to share increase in which usually involve big volume. There are also other contributors like scrip dividend and convertible shares. Management fee is paid in units is dilutive, reason being outstanding share increase is permanent while quarter DPU increase is temporary. A simple way...

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Uncommon Financial Metrics of REITs

Previously, I’ve shared bout Basic Financial Metrics of REITs. This time, I would like to share a few uncommon financial metrics that value against distribution. The reason being is, as a REIT investor, ultimately we are focusing on dividend. In case you ask, I have not done any back test on these metrics. 1) Distribution over Management FeeFormula: Distribution to Unitholders / (Manager’s Base Fee + Performance Fee) This measure how much dividend received for every dollar of management fee paid, the higher the value the better. You could compare whether a REIT manager is charging a high or reasonable fee for...

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Basic Financial Metrics of REITs

For this post, I would like to share some basic financial metrics of REITs, there will be some repetitive metrics from debt profile of REITs. All the information below can be extracted from REITs quarter presentation slide and quarter financial report.1) Distribution per Unit (DPU)  & Dividend YieldDPU = Distribution / Outstanding SharesDividend Yield = DPU / Share Price x 100% DPU is the dividend (in dollar) that investor will receive for every number of share owned. Dividend yield is the dividend % that investor would receive for every $1 of share price. Dividend yield is generally calculated using trailing twelve months (TTM)...

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Diversification Profile of REITs

This is continuous post after debt profile and lease profile of REITs. REITs diversification is a process to reduce risk by investing in multiple income generating sources. Often it is more of qualitative factor in analysis, so how can we measure it? Personally, I quantify it through top income contribution from various sources, the smaller the value, the better. Don’t put all your eggs into one basket 1) Major Sector ContributionSome REITs manage properties from different sectors, you could refer to Sector Contribution Weightage of REITs that I’ve post previously for more detail. Major sector contribution refers to the biggest sector income...

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Monthly Cost and Cash Outflow for Owning a Car in Singapore

After continuous posts about REITs, maybe is time to get back to personal finance topic, this time I will write for car topic. Car is an expensive item to own in Singapore, yet we could still see a lots of cars are on the road. Current COE (Certificate of Entitlement) cost is $ 26k for CAT A and $ 35k for CAT B where the highest COE record is $ 92k for CAT A and $ 96k for CAT B in January 2013. How could one willing to pay for a “certificate” with $ 90k ? For monthly car...

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Lease Profile of REITs

Previously, I’ve shared on what to look out for when assessing debt profile of REITs, this time let’s us look at lease profile of REITs. Unlike debt, leasing information presented by REITs is not standardized across the board. Some REITs would provide information based on NLA (Net Lettable Area), while some based on GRI (Gross Rental Income). This make apple to apple comparison challenging.1) OccupancyWhere to Get: Presentation Slide Occupancy is calculated based on NLA. This value is not applicable to hospitality REITs. Some REITs properties are leased under master lease scheme, in which a lessee rents the whole property....

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Debt Profile of REITs

REITs are highly leverage as compared to normal company. Their debts are non-amortizing type which means that they are only required to pay interests. Principals are normally being refinanced upon maturity, of course will be subjected to bank approval. There are risks associated if debts are not managing well. Below are things to look out for when assessing debt profile of REITs. Understand debt profile of REITs is important 1) Gearing RatioWhere to Get: Presentation Slide Gearing ratio = total debts / total assets. Monetary Authority of Singapore (MAS) impost a 45% gearing limit on REITs, but this is...

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Sector Contribution Weightage of REITs

As per previous topic of How to Create Your Own Basic REITs Screener, there are different type of sector. A lot of REITs have their income generated from different sectors. However, so far I could not find any site mentioned about that, so I’ve decided to consolidate one. DIY provide self-satisfaction As of now, there are 6 sectors in Singapore, which are retail, office, healthcare, hospitality, industrial and logistics. I classified business park under office and data centre under industrial and convention centre under hospitality. I have also separate logistics out from industrial sector, which I do not see anyone...

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How to Create Your Own Basic REITs Screener

Before I start, I would like to share that there are already a few useful websites for REITs screening purpose. Please refer below links:The Fifth PersonMy Stocks Investing JourneyPropertyInvestSGYieldSavvyREITScreener In this case, you may ask why still bother to make our own REIT Screener? To me, first reason would be information verification and second would be customization. Why information verification? Nobody would guarantee on total accuracy and completeness of their data. You could find in all websites above, they have disclaimer stated that there are no warranties to accuracy & completeness on information provided. I could not find disclaimer...

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