Key Highlights from the Report
The latest equity research report by OCBC Investment Research provides an in-depth analysis of Singapore’s REITs and Business Trusts landscape. Covering various sectors such as office, retail, industrial, healthcare, and more, this report evaluates each company’s performance, distribution per unit (DPU), fair value (FV) estimates, and recommendations. Here’s a detailed breakdown of the findings.
Office Sector
IREIT Global
IREIT Global’s market capitalization stands at SGD 376.6 million, with a semi-annual distribution frequency. Its current DPU is 2.82 cents, translating into a yield of 10.1%. The REIT operates exclusively in Europe, with its entire portfolio located there. The price-to-book (P/B) ratio is at 0.48, while the debt-to-asset (D/A) ratio is 37.7%.
Keppel REIT
Keppel REIT, with a market capitalization of SGD 3.34 billion, has a current DPU of 5.80 cents and a forward DPU of 5.90 cents. Its portfolio is heavily concentrated in Singapore (77%), with smaller allocations in Australia and the rest of Asia. The REIT offers a forward yield of 6.8% and trades at a P/B ratio of 0.69. The D/A ratio is 41.9%.
Manulife US REIT
Manulife US REIT operates with a 100% portfolio in the United States. Despite a market capitalization of USD 174.1 million, the REIT currently has no meaningful DPU or yield due to its financial challenges. It has a notably high D/A ratio of 54.3% and trades at a P/B ratio of 0.29.
OUE REIT
OUE REIT, with a market capitalization of SGD 1.65 billion, has a current DPU of 2.20 cents and a forward DPU of 2.10 cents. The REIT predominantly operates in Singapore (93%) with a small exposure to China. Offering a current yield of 7.3%, it trades at a P/B ratio of 0.52 and maintains a D/A ratio of 39.9%.
Keppel Pacific Oak US REIT
This REIT operates exclusively in the United States with a market capitalization of USD 261.1 million. Like Manulife US REIT, it lacks meaningful DPU and yield at present. It has a D/A ratio of 42.6% and trades at a P/B ratio of 0.35.
Prime US REIT
Prime US REIT manages a fully US-based portfolio, and its market capitalization is USD 243.3 million. While its DPU is 0.30 cents, its current and forward yields stand at 1.6%. The REIT has a high D/A ratio of 47.8% and trades at a P/B ratio of 0.31.
Elite UK REIT
Elite UK REIT has a market capitalization of GBP 176.1 million and a current DPU of 2.90 cents. The forward DPU is slightly higher at 3.00 cents, yielding 10.0%. Its portfolio is 100% based in the UK, and it has a P/B ratio of 0.77 and a D/A ratio of 45.1%.
Retail Sector
BHG Retail REIT
BHG Retail REIT operates entirely in China with a market capitalization of SGD 233.8 million. The REIT does not have a meaningful DPU or yield currently. It trades at a P/B ratio of 0.63 and has a D/A ratio of 39.8%.
CapitaLand Integrated Commercial Trust (CICT)
CICT is the largest retail REIT in Singapore with a market capitalization of SGD 14.23 billion. It has a current DPU of 10.90 cents and a forward DPU of 11.10 cents, yielding 5.7%. The portfolio is predominantly Singapore-based (94%) with minor allocations in Australia and Europe. The P/B ratio stands at 0.92, with a D/A ratio of 39.4%.
Frasers Centrepoint Trust (FCT)
FCT boasts a market capitalization of SGD 3.85 billion and operates entirely in Singapore. Its current DPU is 12.00 cents, with a forward DPU of 12.50 cents, yielding 5.9%. The REIT trades at a P/B ratio of 0.95 with a D/A ratio of 39.3%.
Mapletree Pan Asia Commercial Trust (MPACT)
MPACT manages a diversified portfolio across Singapore, Hong Kong, China, and Japan. The REIT has a market capitalization of SGD 6.32 billion. Its current DPU is 8.10 cents, with a forward DPU of 8.30 cents, yielding 6.9%. It trades at a P/B ratio of 0.69 and has a D/A ratio of 38.2%.
Industrial Sector
AIMS APAC REIT
AIMS APAC REIT has a market capitalization of SGD 1.03 billion. Its current DPU is 9.30 cents, with a forward DPU of 9.50 cents, yielding 7.5%. The portfolio is split between Singapore (68%) and Australia (32%). The D/A ratio is 33.4%, and the P/B ratio stands at 0.98.
CapitaLand Ascendas REIT
CapitaLand Ascendas REIT is one of the largest industrial REITs in Singapore, with a market capitalization of SGD 11.35 billion. It has a current DPU of 15.00 cents and a forward DPU of 15.40 cents, yielding 6.0%. The REIT’s portfolio spans Singapore, Australia, Europe, and the US. The D/A ratio is 38.9%, and the P/B ratio is 1.14.
Mapletree Industrial Trust (MINT)
With a market capitalization of SGD 6.26 billion, MINT’s current DPU is 13.50 cents, and its forward DPU is 13.70 cents, yielding 6.2%. The portfolio comprises Singapore (49%) and the US (46%). The REIT trades at a P/B ratio of 1.26 with a D/A ratio of 39.8%.
Data Centre Sector
Keppel DC REIT
Keppel DC REIT specializes in data centers and has a market capitalization of SGD 5.01 billion. Its current DPU is 9.90 cents, and its forward DPU is 10.90 cents, yielding 4.8%. The portfolio spans Singapore, Australia, Europe, and Asia. The P/B ratio is 1.48, with a D/A ratio of 31.5%.
Analyst Recommendations
OCBC Investment Research provides a BUY recommendation for most of the companies covered, citing potential for long-term growth and attractive yields. The fair value estimates have been adjusted for various companies based on risk-free rate assumptions and beta inputs.