Yahoo Finance 4 Singapore REITs with Share Prices at Their 52-Week Lows: Are They a Great Buy?
The REIT sector had its fair share of turmoil as rising interest rates crimped REITs’ ability to maintain their distribution per unit (DPU).
Although DPU may get hit in the near term, the REIT sector continues to be a dependable source of steady dividends for income investors.
Tough times also create opportunities to scoop up quality REITs on the cheap.
One way to filter out potential bargains is to look at REITs that are trading at their 52-week lows.
We feature four here that you can use as a starting point to determine if they should be on your buy watchlist.
CapitaLand China Trust (SGX: AU8U)
CapitaLand China Trust, or CLCT, is a China-focused REIT with a portfolio of nine shopping malls, five business park properties, and four logistics park properties.
The REIT’s unit price has slid 26% year-to-date (YTD) to S$0.68, just a tad higher than its 52-week low of S$0.67.
CLCT reported that gross revenue for 2023 fell by 4.8% year on year to S$364.7 million while net property income (NPI) dipped by 2.9% year on year to S$246.7 million.
Distribution per unit (DPU) tumbled 10.1% year on year to S$0.0674.
The weaker performance was principally because of a weaker exchange rate used to translate revenue and NPI back to Singapore dollars.
In RMB terms, revenue and NPI rose 3.3% and 5.3%, respectively, to RMB 1.9 billion and RMB 1.3 billion.
The REIT sported an occupancy rate of 91.4% as of 31 December 2023.
Its stable of malls saw a strong upsurge in both shopper traffic and tenant sales with China’s full reopening.
Shopper traffic for 2023 shot up nearly 46% year on year while tenant sales improved by 41.5% year on year.
CLCT’s gearing stood at 41.5% with an average cost of debt of 3.57%.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, is an industrial REIT with a portfolio of 187 properties across eight countries with total assets under management (AUM) of S$13.3 billion.
MLT’s share price declined by 23.4% YTD and recently touched its 52-week low of S$1.29.
For the first nine months of fiscal 2024 (9M FY2024), gross revenue inched up slightly by 0.2% year on year to S$552.9 million.
NPI, however, slipped by 0.2% year on year to S$479.6 million.
DPU managed to eke out a small 0.7% year-on-year increase to S$0.06792.
The logistics REIT boasted a high occupancy rate of 95.9% as of 31 December 2023.
MLT also enjoyed a positive rental reversion of 3.8% for its latest quarter, attesting to the high demand for its properties.
The REIT manager is also active in capital recycling with two disposals completed in the third quarter of FY2024, both above their valuations.
For 9M FY2024, MLT acquired a total of nine properties worth over S$900 million to boost its portfolio and help grow its DPU.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns a portfolio of 108 logistics and commercial properties worth S$6.7 billion across five countries.
FLCT’s unit price has skidded by 13.6% YTD to S$0.98 after bouncing off its 52-week low of S$0.96.
The REIT reported stable portfolio occupancy of 95.8% and also enjoyed strong positive rental reversion of 18.2% for the first quarter of fiscal 2024 (1Q FY2024) ending 31 December 2023.
FLCT’s aggregate leverage stood at just 30.7%, giving the REIT ample debt headroom of S$1.1 billion for yield-accretive acquisitions before it hits the 40% level.
It also had a low cost of borrowing at 2.4% with slightly more than three-quarters of its loans on fixed rates.
FLCT had just announced the acquisition of 89.9% interest in a portfolio of four logistics properties from its sponsor Frasers Property Limited (SGX: TQ5).
In addition, the REIT is also working on a development project at the Maastricht Logistics Development in the Netherlands.
The target completion for this property is the first half of fiscal 2025.
Mapletree Pan Asia Commercial Trust (SGX: N2IU)
Mapletree Pan Asia Commercial Trust, or MPACT, has a portfolio of 18 properties in Singapore (5), Hong Kong (1), China (2), Japan (9), and South Korea (1).
These properties are valued at S$16.6 billion as of 31 March 2023.
MPACT’s unit price has fallen by 20.1% YTD and is now hovering just above its 52-week low of S$1.18.
The REIT reported a mixed set of earnings for 9M FY2024 as weak exchange rates continued to affect its performance.
Gross revenue increased by 21.2% year on year to S$718.9 million while NPI increased by nearly 20% year on year to S$544.8 million.
DPU, however, tumbled by 10.1% year on year to S$0.0662 for 9M FY2024.
MPACT sported strong operating metrics for its portfolio with committed occupancy at 96.7% along with a positive rental reversion of 4.1%.
Its tenant retention rate also stood high at 77.3%.
Gearing stood at 40.8% with a low cost of debt at just 3.33%.
The REIT also had 85% of its debt on fixed rates to mitigate a sharp increase in finance costs.
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Disclosure: Royston Yang owns shares of Frasers Logistics & Commercial Trust.
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