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  • Writer's pictureDaniel Lee

Singapore REITs Earnings For January 2024

Here are the REITS that have reported their earnings or business updates in January 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.



 

AIMS APAC REIT

AAPC REIT announced their Q3 2024 results on 31 January of which:


What is positive:

  • Healthy top & bottom-line growth (~5%)

  • Portfolio occupancy improved by 0.3% to 98.1% Y.O.Y

  • Aggregate leverage decreased by 4.2% to 32.2% Y. OY

  • No refinancing requirements in 2024


What is negative:

  • DPU decreased by 4.1% at the back of an enlarged unit base


My stance remains unchanged. I would not consider AAPC REIT as there are other better industrial REIT alternatives available.



 

CapitaLand Ascott Trust

CAT announced their FY 2023 results on 30 January which:


What is positive:

  • DPU increased by 14% Y.O.Y from stronger operating performances

  • RevPAU of key markets continued to exceed pre-covid levels

  • Divested properties at a premium to book value to facilitate capital recycling


What is negative:

  • Nil


I have no comments at the moment as I’ve not covered CapitaLand Ascott Trust yet.


 

CapitaLand India Trust

CIT announced their FY 2023 results on 29 January which:


What is positive:

  • Net Property Income grew by 8% Y.O.Y on Singapore dollar terms

  • NAV improved by 5% Y.O.Y on Singapore dollar terms

  • The weighted average cost of debt has maintained since 1H 2023

What is negative:

  • DPU decreased by 21% as a result of preferential offering impact and FX losses

  • The cost of borrowing is expected to go up as over 30% of debt is due for refinancing in 2024


I have no comments at the moment as I’ve not covered CapitaLand India Trust yet.


 

CapitaLand China Trust

CCT announced their FY 2023 results on 29 January which:


What is positive:

  • Healthy top and bottom-line growth due to better operating conditions

  • Divestment of CapitaMall Shuangjing in Dec 2023 at an exit yield of 2.8%

  • Capital management profile improved slightly Q.O.Q

  • Shopper traffic increased by 45.8% Y.OY and tenant sales grew 41.5% Y.O.Y


What is negative:

  • DPU decreased by 10.1% as a result of FX losses and higher interest cost

  • Portfolio valuation decreased by 0.9% Y.O.Y due to weaker sentiment


 

CDL Hospitality Trust

CDL announced their FY 2023 results on 30 January which:


What is positive:

  • DPU increased by 1.2% Y.O.Y

  • Healthy top and bottom-line growth due to better operating conditions

  • Positive momentum in RevPAR growth across all portfolio markets

  • Portfolio value grew by 7.8% Y.O.Y


What is negative:

  • Higher interest costs essentially eroded the top and bottom-line growth

  • 30.1% of debt is due for refinancing in 2024


I have no comments at the moment as I’ve not covered CDL Hospitality Trust yet.


 

Frasers Logistics & Commercial Trust

FLCT announced their 1st Quarter 2024 results on 30th of January which:


What is positive:

  • Strong portfolio rental version (>10%)

  • Capital management ratios remained relatively unchanged

  • Completed Ellesmere Port which should contribute to FY24 performances


What is negative:

  • Commercial property's occupancy rates are still low (below 90%)

  • Around 25% of debt is due for refinancing in 2024


My stance remains unchanged. I think FLCT is a good position to have in my portfolio but not at this price. With the cost of borrowing expected to go up this year due to refinancing requirements, I expect further downward pressure on share price which could offer a potential entry point in the future.



 

Frasers Centrepoint Trust

FCT announced their 1st Quarter 2024 results on the 23rd of January of which:


What is positive:

  • Portfolio occupancy has increased by 0.2% since last quarter to 99.9%

  • Aggregate leverage has decreased by 2.1% since last quarter to 37.2%

  • Tampines AEI is on track to be completed & already has a 97% lease commitment

  • FCT is acquiring an additional 24.5% stake in Nex shopping mall


What is negative:

  • Tenants’ sales have decreased as a result of renovation and asset enhancement works

  • The average cost of debt increased by 0.2% since last quarter to 4.3%


Overall, nothing much has changed outside of expectations. I expect 2024 performances to be slightly affected negatively due to the loss of rental income from AEI works and the higher cost of borrowing. At the current price levels, FCT trades around 5 to 5.5% dividend yield which, in my opinion, is fairly valued. If the price is right, I’d accumulate more shares.



 

Keppel DC REIT

KDC announced their Full Year 2024 results on 26 January which:


What is positive:

  • Portfolio occupancy remained resilient at 98.3%

  • The cost of borrowing is unlikely to increase further given that there is not a lot of debt due for refinancing in 2024 and 2025


What is negative:

  • DPU had decreased by 9.3% due to higher borrowing costs and loss allowances for uncollected rental income in Guangdong Data Centers

  • Uncollected rental arrears and tenant woes over Guangdong Data Centre 1 to 3 might result in a performance drag for the next few years if not resolved promptly


Given the tenant woes over Guangdong Data Centers coupled with disappointed investor sentiment at an overvalued price, I expect further downside pressure on the share price of Keppel DC REIT. Should Keppel DC REIT trade around a 6% dividend yield, I think it may be worth considering despite the tenant headwinds as those too shall pass.



 

Mapletree Logistics Trust

Mapletree Logistics Trust had announced their Q3 2023/4 results on 24 January of which:


What is positive:

  • Available DPU increased by 0.7% largely due to divestment gains

  • Divestments proposed and completed are well above the valuation


What is negative:

  • Portfolio occupancy had decreased by 1% Q.O.Q

  • Higher property expenses and FX losses continue to weigh on growth

  • Performance in China is dragging down overall performance

MLT performance for Q3 23/24 seems to be neutral in my opinion as the growth in the top line is pretty much eroded by higher expenses and an enlarged unitholder base. Overall, the report does not change my existing view on the counter – which is investible but not at this price.


 

Mapletree Industrial Trust

Mapletree Logistics had announced their Q3 2023/4 results on 25 January of which:


What is positive:

  • Higher average rental rates across Singapore and North American Portfolio

  • Weighted average lease expiry improved to 4.4 years from 4.2 years Q.O.Q

  • Average all-in funding cost decreased by 0.1% Q.O.Q


What is negative:

  • Occupancy rate dipped by 0.6% Q.O.Q

  • The aggregate leverage ratio increased to 38.6% in Dec 2023 from 37.9% in Sept 2023

  • DPU decreased by 0.9% Y.O.Y at the back of higher property expenses and enlarged unit base


MIT's performance for Q3 23/24 seems to be neutral in my opinion as the growth in the top line is pretty much eroded by higher expenses and an enlarged unitholder base. Overall, the report does not change my existing view on the counter – which is investible but not at this price.



 

Mapletree Pan Asia Commercial Trust

MPACT had announced their Q3 2023/4 results on 25 January of which:


What is positive:

  • Higher gross revenue (+21.2%) due to full-year contribution from acquired properties

  • Occupancy improved by 1.2% Y.O.Y to 96.7%

  • Capital management ratios remained relatively unchanged Y.O.Y


What is negative:

  • DPU decreased by 10.1% Y.O.Y at the back of higher interest expense, enlarged unit base and absence of one-off gains


I have no comments at the moment as I’ve not covered MPACT yet.


 

OUE Commercial REIT

OUE REIT announced their FY 2023 results on 29 January which:


What is positive:

  • Relatively unchanged DPU (+1.8% Y.O.Y)

  • Robust performance was driven by full room inventory of Hilton Singapore Orchard

  • Aggregate leverage decreased by 1.2% Y. OY to 38.2%

  • No debt refinancing required in 2024


What is negative:

  • Weighted average cost of debt increased by 0.1% Y.O.Y


I have no comments at the moment as I’ve not covered OUE Commercial yet.


 

Suntec REIT

Suntec REIT announced their Financial Year 2023 results on 24 January which:


What is positive:

  • Resilient performance from local properties via higher occupancy and rental reversion


What is negative:

  • DPU has decreased by 19.7% year on year

  • The impact of high interest rates is expected to continue over the next few years

  • More headwinds are expected for foreign properties which could further impact occupancy and property valuation


Unfortunately, due to poor capital management, the performance of Suntec REIT will probably continue to remain depressed in the next few years as a result of a higher interest rate environment and the eventual absence of one-off items such as income support and capital distribution from divestment which had been propping up the DPU in the last few years.


The current price that Suntec is trading at is definitely outside of my comfort zone as I feel that they are overvalued based on their distribution from operations alone. That being said, at the right price, I still think Suntec REIT is worth considering given the quality of its local properties.



 

Sabana REIT

Sabana Industrial REIT announced their Financial Year 2023 results on 23 January of which:


What is positive:

  • Spectacular growth in gross revenue (+17.9%) due to high rental reversions

  • Higher portfolio valuation, supported by asset enhancement and rejuvenation efforts


What is negative:

  • DPU has decreased by 9.5% year on year due to higher capital retention and lower distribution percentage (90% in 2023 vs 100% in 2022) in anticipation of the additional cost that is to be incurred for their internalization process

  • The bottom line remained unchanged largely due to the one-off cost incurred by the ongoing internalization process


Despite the strong top-line performances, my concern for Sabana REIT is still the uncertainty that looms around the internalization process of which my stance remains unchanged for this counter.



 

Starhill Global REIT

Sabana Industrial REIT announced their 1H 2023/4 results on 29 January of which:


What is positive:

  • Portfolio occupancy improved by 1% over the last 6 months

  • Renewed the master lease at Ngee Ann property – extending WALE to 7.9 years


What is negative:

  • DPU has decreased by 2.2% Y.O.Y due to higher financing costs and one-off commission fee


No changes in view on the counter. I’d probably still avoid this counter as there are better alternative REITs that provide the same underlying exposure to both commercial and offices.



 

Daniel is a Licensed Independent Financial Consultant with MAS and a Certified Financial Planner (CFP®).


Connect with me on social media platforms to receive updates on future content! You can also slide into my DMs if you have any questions :)





 

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

This advertisement has not been reviewed by the Monetary Authority of Singapore


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