S-REITs - Week 8 - 2025

( YTD: +3.37% | 5D: -5.15%)

 20 Feb - FY2024 Financial Results

• Prudent capital expenditure and strategic leasing strategy result in cash balance of US$65 million
• 500 Plaza to be sold for net consideration of ~US$40 million, bringing REIT closer to recovery and growth
• MUST in ongoing divestment discussions on additional properties for further debt repayment

Quick Summary

• Same-store gross revenue 1 of US$150.6 million and same-store net property income (NPI)1 of US$71.4 million for the full year ended 31 December 2024 (FY 2024), which were 15.1% and 25.9% lower than FY 2023.
  
  
• The NPI decline was largely driven by TCW Group’s non-renewal in Figueroa and another financial tenant’s vacate in Exchange. The latter had paid a US$9 million termination fee in FY 2023.
  
  
• MUST recorded higher finance expenses owing to a one-off fee of US$2.3 million incurred in relation to the Master Restructuring Agreement (MRA) signed with lenders, offset by higher interest income.
  
  
• As at 31 December 2024, MUST’s unencumbered gearing ratio and aggregate leverage ratio increased to 64.2% and 60.8% respectively from three months ago, due largely to the 9.3% decline in its portfolio valuation.
  
  
• MUST’s weighted average debt maturity lengthened slightly to 2.9 years as at 31 December 2024. The trailing 12-month interest coverage ratio (ICR) declined to 1.7 times partially due to the one-off fee of US$2.3 million paid to lenders and does not reflect the full-year impact of the US$130.7 million debt repayment in November 2024.
  
  
• To mitigate cash flow volatility resulting from interest rate movements, the percentage of MUST’s hedged/fixed rate loans remained high at 69.4%. MUST has a healthy cash balance of US$65.2 million.
  
  
• Average rent reversion came in at –5.1% and –7.4% for leases signed in 4Q 2024 and for the full year, respectively, with five out of nine office leases signed in 4Q 2024 above market rents. 
  
  
• As at 31 December 2024, portfolio WALE remains long at 5.0 years.

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( YTD: +1.47% | 5D: +1.47%)

20 Feb - FY2024 Financial Results

• Stable FY2024 EMA Rental Income and Distributable Income, supported by lower finance cost and tax expenses despite reduced sales year-on-year
• Portfolio occupancy at record high of nearly 99%; 4Q 2024 outlet sales up 4.8% YoY, reversing downward trend
• Healthy balance sheet with historically low gearing of 24.8%, underpinned by stable property valuations
• Diversified debt maturity profile with no refinancing needs in 2025

Quick Summary

• Distribution Per Unit (“DPU”) of 2.929 Singapore cents for the second half of 2024 (“2H 2024”), representing a 0.1% year-on-year (“YoY”) increase
  
  
• Resilient EMA Rental Income of RMB 335.1 million, reflecting a 0.8% YoY improvement
  
  
• Distributable Income for 2H 2024 increased 3.1% YoY to S$40.6 million, primarily due to lower finance cost and tax expenses
  
  
• Financial year ended 31 December 2024 (“FY2024”), EMA Rental Income amounted to RMB 664.1 million, a 0.9% YoY increase
  
  
• DPU of 6.082 Singapore cents, reflecting a 2.7% YoY decrease
  
  
• As of 31 December 2024, the portfolio valuation was RMB 8,420 million, reflecting a slight decrease of RMB 77 million (0.9%) compared to the previous year. In Singapore Dollar terms, the valuation increased by 0.1%, driven by a favourable Renminbi exchange rate. The portfolio valuation has stayed firm, supported by resilient outlet revenue.

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( YTD: -7.60% | 5D: -7.06%)

19 Feb -  FY2024 Financial Results

Portfolio Valuation Up +2.2% YoY to US$1.35 billion

• Prudent allocation of capital dollars was key to asset value appreciation.
• Return to office gains momentum. Leasing environment continues to improve.
• FY2024 Gross revenue was US$141.0 million. Maintained cash distribution of c.10% of distributable income for 2H2024.

Quick Summary

• Year-end portfolio valuation saw a 2.2% increase in portfolio valuation as compared to 2023
  • Reasons for increased in valuation：
    1. PRIME’s well-diversified portfolio and active management;
    2. prudent allocation of capital expenditure in 2024;
    3. positive leasing momentum;
    4. high quality assets; and
    5. limited new constructions. Consequently, aggregate leverage improved to 46.7% as at 31 December 2024.
       
       
• the completion of refinancing and divestment exercises in 2024, PRIME’s aggregate leverage stood at 46.7%. This represents approximately US$92.5 million debt headroom to MAS 50% leverage threshold. As of 31 December 2024, 67% of borrowings are hedged or fixed to mid-2026 and beyond. PRIME has a fully extended weighted average debt maturity of 2.8 years.
  
  
• 2H2024 gross revenue and net property income (“NPI”) were US$67.5 million and US$35.4 million respectively, while FY2024 gross revenue and NPI were US$141.0 million and US$76.0 million respectively
  
  
• the Manager has made the decision to announce a distribution per Unit of 0.11 US cents, equating to approximately 10% of the distributable income, in order to balance our objectives to preserve a substantial proportion of distributable income to meet PRIME’s capex needs and reinvest cash flows in the business.
  
  
• Lease signings increased 1.9% year-on-year (“YoY”) from 581k sf in FY2023 to 592k sf of leases in FY2024

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( YTD: +4.21% | 5D: +3.13%)

19 Feb - FY 2024 Financial Results

• Achieves year-on-year Gross Revenue Growth and an Increase in Portfolio Valuation
  
  • 2H 2024 DPU of 2.05 US cents is 2.0% higher than 1H 2024
  • Portfolio valuation increased 2.9%1 y-o-y, supported by UHREIT’s resilient portfolio
  • Committed occupancy for Grocery & Necessity Properties stands at 97.5% supported by strong leasing momentum
  • WALE increased to 8.1 years, up from 7.1 years the previous year
  • Net asset value per unit increased to US$0.75
  • Aggregate leverage decreased to 38.9%, with no loans maturing until November 2026

Quick Summary

• Gross revenue of US$36.4 million for the six months ended 31 December 2024 (“2H 2024”), a 0.4% year-on-year (“y-o-y”) increase. The growth was supported by new leases and rental escalations from existing leases as well as income from the new Academy Sports + Outdoors store at St. Lucie West, which commenced operations in November 2023.
  
  
• 2H 2024 net property income (“NPI”) of US$24.4 million was slightly lower by 1.6% y-o-y, due largely to the absence of contributions from the divested properties, being Big Pine Center, Lowe’s and the Sam’s Club properties within Hudson Valley Plaza, and higher property expenses not recoverable from tenants due to temporary lower occupancy during tenant transitions.
  
  
• 2H 2024 distributable income of US$12.8 million was lower y-o-y due mainly to higher interest costs from the refinancing of the Arundel Plaza mortgage loan and the entry into new interest rate swaps to replace maturing swaps at less favourable rates.
  
  
• 2H 2024 Distribution Per Unit (“DPU”) stood at 2.05 US cents, 2.0% higher than the DPU for the six months ended 30 June 2024. For the financial year ended 31 December 2024 (“FY 2024”), UHREIT’s total distribution was 4.06 US cents. Based on the closing price of US$0.475 per unit on 31 December 2024, UHREIT’s distribution yield for FY 2024 was 8.5%
  
  
• Net asset value per unit as at 31 December 2024 increased to US$0.75, up from US$0.74 the previous year.

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( YTD: -8.20% | 5D: -6.67%)

20 Feb - Acquisition of Four Points by Sheraton Nagoya, Chubu International Airport

• Maiden expansion into Japan with acquisition of Four Points by Sheraton Nagoya.
• Initial purchase price of JPY 6.0 billion represents an attractive 23.0% discount to the independent valuation.
• Acquisition is part of Far East H-Trust’s strategy to diversify its portfolio while maintaining a strong focus on Singapore.

For Rationale and Key Benefits, please click here

On 11 February 2025, Paragon REIT received a privatization offer from Times Properties, a wholly owned subsidiary of Cuscaden Peak Investments, at a 10.1% premium to the counter's last transacted price......

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