Who are the S-REITs winners and losers of Q1 2024? How should investors be reading Manulife US REIT's management change? And where can we find attractive opportunities in Japan-exposed S-REITs?
Michelle Martin asks Kenny Loh, REIT Specialist and Independent Financial Advisor. Curious about the screeners Michelle talks about in this episode? Kenny gives listeners access to a 1-month free pass, promo code RSxMoneyFM, for his screener at https://reitsavvy.com/reits-screener (Pass ends on April 15 2024)
Note: The above analysis is Kenny's personal views and is NOT buy or sell recommendations of REITsavvy. Investors who would like to leverage his extensive research and years of Singapore REITs investing experience can approach him separately for a REITs Portfolio Consultation
MoneyFM: Data Centre REIT Snapshot
We will explore the Pure Play Data Centre listed in Singapore, comparing it across some metrics using the premium REITsavvy screener.
Digital Core REIT vs Keppel DC REIT
Metric 1 - Is the REIT now at attractive value?
Price/NAV:
The Price to NAV ratio for REITs assesses whether the market price of shares aligns with the value of the real estate assets held by the REIT, helping you to determine if the REIT is fairly priced relative to its property value. In addition, with past data we will be able to have a sense if it is really undervalue.
If the Price to NAV is low, it might mean that the REIT is trading at a good price compared to the value of its properties.
If the Price to NAV is high, it could mean that the REIT is trading at a higher price compared to its property value, which might indicate it's relatively expensive.
Metric 2 - How is the REIT lease management health?
WALE:
Weighted Average Lease Expiry, indicating the average time until the leases of the properties owned by the REIT expire.
Generally, the higher the better.
Metric 3 - How is the REIT debt situation?
Interest Cover:
The REIT's ability to cover its interest payments on debts with its operating income, indicating its financial health and ability to meet obligations.
Generally, the higher the better.
Metric 4 - How Diversified is the REIT portfolio?
Keppel DC REIT
Digital Core REIT
Summary
The prices of both Data Centre REITs have experienced notable declines; Digital Core REIT is notably distant from its IPO price, while Keppel DC REIT has retreated from its peak price of approximately $3.17 since 2020.
It's essential to analyse the fundamentals of the REITs to determine if they remain fundamentally robust or if the considerable price reductions are justified.
Find out more of Keppel DC REIT Overview here
Find out more of Digital Core REIT Overview here
Want the most robust and up-to-date data? Click here to find out more on the premium screener
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