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Announcement by First REIT, Frasers Logistics & Commercial Trust, Digital Core REIT , Manulife US REIT , Starhill Global REIT , OUE Commercial REIT, Paragon REIT, Aims APAC REIT

S-REITs Recap - Week 44

30 Oct - 5 Nov 2023

First REIT
( YTD: -9.62% )

Business Update For 9M 2023

In 3Q 2023, the Distributed Per Unit (DPU) remained stable at 0.62 Singapore cents. However, in 9M 2023, the DPU decreased by 6.1% YoY to 1.86 Singapore cents due to higher finance costs and currency depreciation.

First REIT has a low sensitivity to interest rates with 85.9% of debt on fixed rates, a 3.8-year weighted average term to maturity, and no refinancing requirements until May 2026.

The properties in Indonesia and Japan showed healthy growth. Rental and Other Income from Indonesian hospitals increased by 8.8% YoY to IDR 515.3 billion, and income from nursing homes in Japan grew by 41.9% YoY, mainly due to the acquisition of nursing homes in 2022.

For further information, please click here

Frasers Logistics & Commercial Trust
( YTD: -4.31% )

FY2023 Highlights

In FY2023, the portfolio demonstrated strong performance with a healthy average rental reversion of +7.8% and +18.9%. The portfolio maintained a high occupancy rate of 96%.

Additionally, an attractive freehold logistics development was acquired in the Netherlands at a significant discount.

The company's financial health is robust, boasting a low leverage of 30.2% and a high interest coverage ratio of 7.1 times as of September 2023.

Furthermore, there are no major refinancing requirements in 1HFY24, and most of the debt maturing in FY2024 has already been addressed with existing facilities.

For further information, please click here

Digital Core REIT
( YTD: +3.64)

Digital Core REIT finalizes agreements to address customer bankruptcy, extend its presence in Japan, and boost ownership in Frankfurt facility.

For further information, please click here

Manulife US REIT
( YTD: -80.67% )

Operational Updates For The Third Quarter FY2023

At the conclusion of the third quarter, Manulife US REIT achieved an 84.7% occupancy rate and a portfolio weighted average lease duration of 5.1 years.

It has a aggregate leverage of 56.0% and an unencumbered gearing ratio of 59.9%. During the quarter, the trust finalized leases for approximately 193,000 square feet and experienced a favorable rent reversion of 24.2%.

For further information, please click here

Starhill Global REIT
( YTD: -11.11% )

1Q FY 2023/24 Business Updates

Starhill Global's revenue fell 1.0% due to forex and Japan divestment. Net property income rose 0.4% in Q1 FY23/24, driven by Singapore properties and Adelaide retail.

Wisma Atria basement renovation continues without major disruptions. Tenant sales and traffic increased despite the renovation. Portfolio occupancy is at 98.4%.

The company extended its JPY2 billion loan for 3 years. Gearing is 37.4%, with 77% of debt fixed/hedged. No debt refinancing needed until September 2024, and sufficient RCF lines are available for maturing debts in the next two years.

For further information, please click here

OUE Commercial REIT
( YTD: -26.87% )

Financial & Operational Performance For 3Q 2023

NPI in 3Q 2023 increased 29.8% YoY to S$62.7 million driven by overall portfolio improvement. Committed occupancy of Singapore office portfolio remained healthy at 95.7% as at 30 September 2023 with positive rental reversion of 18.4% in 3Q 2023

3Q 2023 hospitality segment RevPAR increased 12.8% YoY to S$295. Crowne Plaza Changi Airport asset enhancement on track to complete by December 2023 to capture visitor rebound in 2024.

Obtained investment grade credit rating of BBB- with a stable outlook from S&P Global Ratings; interest rate of 4.20% notes due 2027 will step down to 3.95% resulting in some cost savings

For further information, please click here

Paragon REIT
( YTD: -8.33%)

Key Business And Operational Updates For 3Q FY2023

For Gross revenue growth, YTD 3Q FY2023, the portfolio gross revenue grew S$2.5m or 1.2% yoy to S$215.6m from S$213.1m. The gross revenue for Singapore and Australia assets increased 2.4%1 yoy and 5.4%1 yoy, respectively Proactive management of a strategic and diversified portfolio.

There is a strong occupancy rate of 98.1% maintained across a diversified portfolio and a healthy portfolio WALE of 5.2 years by NLA and 3.1 years by GRI.

The REIT strategically located assets continued to benefit from strong domestic consumption and tourist arrivals Capital management. For the Gearing, the REIT maintained at 30.1% with fixed debt of 85% and average cost of debt of 4.21%.

In addition, the debt is well staggered with a weighted average term to maturity at 2.4 years with no further refinancing due for the remaining of FY2023.

For further information, please click here

( YTD: +0.81% )

1H FY2024 Financial Results

The REIT Continued strong rental reversion of 37.7% for 1H FY2024 (2Q FY2024: 33.7%) and with resilient portfolio occupancy at 98.1%.

The recent EFR of S$100 million fortifies balance sheet with gearing at 32.1% to capture opportunities in uncertain market environment. It has a stable 1H FY2024 DPU of 4.650 Singapore cents from robust operational performance.

For further information, please click here

Building a Strong Knowledge Foundation

Building a strong REIT foundation is essential before starting the journey into REIT to avoid mistakes.

You may find the SGX course "Building a Diversified REIT Portfolio" to be of great interest as it can kickstart your journey into the world of REITs.

SGX REITs Course - 18 and 25 Nov 2023

Building a Diversified REIT Portfolio
by Kenny Loh

Guest Speakers: 
Cecilia Tan, CEO, Sasseur REIT
Han Khim Siew, CEO, OUE Commercial REIT

Limited Seats Only!

Registration Link: