PARAGON REIT announced its financial results for the full year ended 31 December 2023 (“FY2023”) on 5 February 2024.
| Our Comments |
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Paragon REIT has maintained relatively stable revenue and property income, showing a slight year-on-year increase in the resilient retail sector. The overall Net Asset Value (NAV) has remained unchanged at S$0.91 for both 2022 and 2023, indicating no growth. However, in this context, a stable NAV is considered favorable coupled with the REIT's low gearing ratio of 30% during these period of time. Nonetheless, there are concerns regarding its high average cost of debt, standing at 4.3%, and upcoming debt maturities requiring refinancing in 2024 and 2025, totaling S$223 million and S$447 million respectively. It remains to be seen if the management can secure more favorable refinancing terms to alleviate the burden of high interest expenses, which could potentially impact the Distribution Per Unit (DPU) despite stable revenue and net property income. Invest wisely, REITsavvy Readers! |
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