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CapitaLand Commercial Trust (CCT), Suntec Reit, Mapletree Commercial Trust (MCT), and Keppel Reit posted an average leverage ratio of 36.2 percent in Q2 2019, down from last year’s average of 37.3 percent.
The four biggest Singapore-listed real estate investment trusts (S-Reits) with office assets saw their average distribution per unit (DPU) decline by 0.3 percent year-on-year to 2.07 Singapore cents in the second quarter of 2019, reported The Business Times.
These are CapitaLand Commercial Trust (CCT), Suntec Reit, Mapletree Commercial Trust (MCT),and Keppel Reit, said the Singapore Exchange (SGX).
Suntec Reit posted the highest DPU at 2.36 cents. MCT came in second with a DPU of 2.31 cents.
The four office Reits’ net property income and gross revenue declined by an average 7.9 percent and 4.7 percent year-on-year to $63.5 million and $85.4 million, respectively.
In Q2 2019, Keppel Reit and Suntec Reit had the highest aggregate leverage ratios at 38.4 percent and 38.3 percent respectively. MCT registered the lowest gearing at 33.1 percent.
The four Reits posted an average leverage ratio of 36.2 percent in Q2 2019, down from last year’s average of 37.3 percent.
Interest cover ratio for the four S-Reits stood at 4.2 times on average, with CCT having the highest interest cover ratio of 5.3 times.
For the year to date, the Reits posted a total return of 19.6 percent on average, taking their one-year total returns to 20.1 percent and their three-year total returns to 51.5 percent.
MCT and CCT emerged as the top performers with year-to-date total returns at 28.6 percent and 26.9 percent respectively.
With this, RHB upgraded its call on Suntec Reit to call, with a $2.08 target price, while OCBC Investment Research downgraded its call on MCT to sell, with a fair value estimate of $1.89 after adjustments.
DBS, on the other hand, maintained its buy call on CCT with target price of $2.40. RHB also maintained its neutral call on Keppel Reit, while revising its target price from $1.12 to $1.20.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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