Company Overview ARA Logos Logistics Trust (ALOG) has 30 logistics properties (10 in Singapore, 20 in Australia) and stakes in two property funds. Based on its latest 1Q 2021 business update, 73% of its gross revenue is derived in Singapore while 27% is derived from Australia. Based on its FY 2020 DPU of 5.25 cents, it is trading at a 12M trailing distribution yield of 6.6%.  ALOG's business model is like any other REIT where it collects rental income as the landlord from its tenants. Its tenants are a mix of third-party logistics players or 3PLs (eg. DHL, FedEx) and end-users like ST En ..read more

With the announcement of LREIT's results a few weeks back, all retail REITs with exposure to SG retail have announced their results. Similar to the previous article, the focus will be broadly on the performance and outlook for these REITs and I will highlight some catalysts to look out for. Didn't have the time to write FCT, so will leave that out for now.  Lendlease REIT (LREIT) Lendlease REIT reported year-on-year increases in financial metrics like Revenue, NPI and Distributable Income however I think these are quite difficult to analyze as the 1HFY20 figure was annualized and pro-rate ..read more

Over the past few weeks, S-REITs have been announcing their results for the quarter ended 31 Dec 2020. Out of the few sectors (Retail, Office, Industrial and Hospitality), REITs with exposure to the Singapore office market have finished announcing their results. The article will broadly summarize what the key takeaways have been for me and also highlight some of the catalysts that investors in such REITs can look out for. Most of these REITs have non-SG Office exposure too but the focus will be on SG Office since that is the key exposure (apart from CICT).  Suntec REIT In previous years ..read more

The airline industry has been one of the most badly hit by the Covid-19 pandemic as international air travel ground to a halt. Even as there are green shoots of recovery in the economy and green lanes are opening up, air travel is still >90% down from pre-Covid levels. In light of this, investors have been reconsidering their stakes in the industry. I recently read an article about the recovery in the airline industry being unequal and would like to give my take on the points mentioned. Generally, it argued that the characteristics of low-cost carriers ('LCCs') would allow it to recover fas ..read more

As the world experiences an uneven recovery from the Covid-19 virus, investors continued to pile into markets driving the S&P and NASDAQ indices to all-time highs. The divergence between reality and stock markets have been explained by some as the lack of any viable alternatives for return as interest rates have plummeted.  On the S-REITs front, industrial REITs have continued their outperformance while hospitality and retail continue to lag. In this article, I will explore some general concerns investors have regarding REITs in order to provide readers with more tools to evaluate REI ..read more

PropNex released its 1H20 financial results and reported a 151% surge in net profit after tax to $16.0m. According to PropNex the key driver of earnings growth was the project marketing services segment, which had revenue growth of $75.1m vs total revenue growth of $75.2m. As this is a higher margin segment relative to the resale market, there was an increase in gross profit margin to 11.4% in 1H20 vs 9.8% in 1H19.  PropNex 1H20 Results (Source: PropNex) In previous quarters, PropNex mentioned that transactions usually would have a 1-2 quarter delay from the time the agreements a ..read more

Ascendas REIT announced their results about 2 weeks ago and reported a 3.7% growth in distributable income but a 10.8% yoy decline in 1H20 DPU. Broadly speaking results were seen as positive despite the Covid-19 pandemic raging on in other sectors. Positive rental reversions, especially in business parks, were encouraging and gearing of 36.1% continues to provide AREIT with a healthy debt headroom for acquisitions. In this article, I would like to focus on key points brought up during the analyst briefing that investors may have missed if they merely looked at the announcements on SGX. A ..read more

Frasers Logistics & Commercial Trust (FLCT) announced its 3QFY21 business update last evening. This is the first set of 'results' announced after the completion of the merger between FLT and FCOT. Due to the larger entity and mix, most of the yoy comparisons are not that meaningful since all show a huge increase due to the merger. To better assess how FLCT performed, we have to zoom into the details 1. Positive reversions for commercial but negative for industrial During the quarter FLCT completed 134,669 sqm of leasing deals in total and achieved +10.6%/-3.9% reversions for its commercia ..read more

Singapore Airlines (SIA) released its 1QFY21 results this evening. SIA reported a 99.5% decline in passenger volumes which led to the headline $1bn net loss. While passenger volumes across its different segments fell by >99%, cargo performed better with a 55% fall in cargo and mail carried. Quite interesting to have your volumes decline by >50% but still be the best performing segment. This goes to show how bad things are for the airline industry.  Outlook In its outlook statement, SIA mentioned that the recovery in international air travel is slower than expected and industry exp ..read more

Ascott announced its results earlier today and it wasn't pretty. Ascott had earlier set out profit guidance that distributable income could drop between 55-65% and DPU could decline by 65-75% for 1H2020. Looking at the actual results, the guidance was fairly accurate as DI declined by 56% while DPU dropped by 69%.  I believe the decline would have been even worse if Ascott had compared it on a same-store basis since there was the merger between Ascott and Ascendas Hospitality that would have boosted the distributable income. During 1H2020, 21 of Ascott's properties were temporarily close ..read more