指導教授：張光第教授

第四組
Singapore REITs
B10908040 四企管三 許芳甄
B10908074 四企管三 潘俊銘
B10903114 四機械三 陳宗佑
B10804024 四材料二 江家齊
Content

01 Case Background 02 REITs Introduction

03 Introduction of each REITs 04 Problem Set

PART ONE
Case Background
PAMC
Prospero Asset Management Company
What happened this morning?

Substantial inflow of
investment in three funds ：

• The prudent Equity Fund

• The Balance Equity Fund
• The Wealth Accumulation Fund
PART TWO
REITs introduction
Real Estate Investment Trust
Business model

The REIT leases space They can offer a

Most REITs are
and collects rents on strong, stable
publicly traded like
the properties, then annual dividend and
stocks, which makes
distributes that the potential for
them highly liquid
income as dividends long-term capital
to shareholders appreciation
REITs in Singapore
Required to comply with the regulatory framework set by
the Monetary Authority of Singapore (MAS),the country’s
central bank.
REITs in Singapore

0.93
6.1% 34.78%

Price/NAV
Distribution Gearing Ratio
Yield
REITs

Product Equity
Fund

defensive
low
investment

moderate aggressive
normal high
investment investment

Balance Equity Fund Wealth Accumulation

Fund
PART THREE
Background of each REITs
Diversified trade mix, with SGX: C38U
the defensive mid-market
food and beverage outlets CMT Portf olio’s trade mix
Others

Accounting for Electrical Education

Information technology2%
2%
Warehouse
1%
1%

Houseware & Furnish-

1% ing Food&beverage
29% Of GRI Jewellery & Watches
3%
Office
3%
3% 29%

Supermarket
Others Leisure& Entertainment 4%
4%
Warehouse
Education
Electrical
Information technology
Houseware & Furnishing Shoes&begs Sporting goods
Jewellery & Watches 5% 5%
Office
Department store Fashion
Supermarket
6% 14%
Leisure& Entertainment
Shoes&begs Service
7%
Beauty&health
Sporting goods
10%
Department store
Service
Beauty&health
Fashion
Food&beverage
0 5 10 15 20 25 30 35 SGX:A17U
Gross Revenue& Distribution Property Valuation
(USD M’n)
600 7000
6300
5933
6000
525 5169 5326
4763 4987
5000
500 474
467
452 4000

407 3000
400 386
2000 grew
330.00 GROSS
REVENUE 1000 by 15%
300 275.00
262.00 0
DISTRIBUTION 2011 2012 2103 2014 2015 2016
236.00 234.00
205.00 Occupancy rate
200
100

99
100
98

97
0 96
2011 2012 2013 2014 2015 2016

Between 2011and 2015, the 95

94 Occupancy rate consistently

REIT’s revenue grew 93

92 above 95%
by 23%
2011 2012 2013 2014 2015 2016
Operated granular property SGX: A17U
portfolio spanning a “wide”
range of business and A-REIT Portf olio’s trade mix
industrial properties rRubber and plastic
Printiong of record
Rubber and plastic media 1%
Metal product
1% 3rd Party Logistic
Others 11%
Printiong of record media 17%
Repair of vehiclesMetal product
Repair of vehicles
1% 1%
Chemical trading company
10%
Textiles Chemical
1%
Construction
Construction Textiles
Hotel
2% 1%
Hotel
2% Financial
Medical
10%
Healthcare product
Medical Food product
Food product
2% 3%
Life science Healthcare product Life science M&E
2% 5% 9%
Electronics

Information technology Electronics

iInformation tech-
7%Talecommunication
Talecommunication 8% nology
M&E
8%

Financial

trading company

3rd Party Logistic

Others
0 2 4 6 8 10 12 14 16 18
Gross Revenue& Distribution Property Valuation
(USD M’n)
8000
800 761 7110
7000
6000 5828
700 674 5128
5000 4571 4776
614
600 576 4000
3000
500
503 grew
GROSS 2000
REVENUE 1000 by 83%
400
DISTRIBUTION 0
327.00 2012 2103 2014 2015 2016
300
229.00 241.00
200.00 193.00
200
Occupancy rate
100 100
98
96
0
2012 2013 2014 2015 2016 94
92
Between 2012and 2016, 90
88

the REIT’s revenue grew Occupancy rate progressively

86
84
82

by 51% declined to 89.1

80
2009 2010 2011 2012 2013 2014 2015 2016 2017
SGX: S7P

Others SoILBUILD REIT Portf olio’s trade mix

Machinery
Food product
Others 4%
Oil & Gas
12% Government Agency
Logistics 4%
Information Technology 3% Record media
4%
Marine & offshore
Fabricted metal product
Machinery 4%
Electronic 12%
Real Estate
Chemicals
Chemicals 8%
Fabricted metal product

Record media

Government Agency
Oil & Gas Information Real Estate
Food product 11% Technology 9%
10%
Logistics Marine & offshore
10% Electronic
0 2 4 6 8 10 12 14 9%
Gross Revenue& Distribution Property Valuation
(USD M’n)
1000 916
60
56.27 900 844
800 731
700 678
50 48.33
600
42.16 500
39.47 400
40
300
35.05
GROSS 200
31.50 REVENUE
100
30
DISTRIBUTION 0
2103(1) 2014 2015 9M2016
19.54
20

Occupancy rate
10
5.87 102
100
0 98
2013(1) 2014 2015 9M2016
96
94
grew 92
Occupancy
90 rate progressively
by 16% 88

3Q
2
3
declined to 94.8
01
4Q
210
3
1Q
201
4
2Q
201
4
3Q
201
4
4Q
201
4
1Q
201
5
2Q
201
5
3Q
201
5
4Q
201
5
1Q
201
6
2Q
201
6
3Q
201
6
c2pu
revenue grew SGX:C2PU

by 17%
Gross Revenue& Distribution
(SGD M’n)
80
73
71
70 67 66
P-life REIT Portf olio’s trade mix 62
60 58
55.00
Medical centre in Malaysia
1% 50 49.00
45.00 GROSS
43.00
41.00 40.00 REVENUE
40
Nursing house
36% DISTRIBUTION
30
Hospital & medical
centre 20
63%

10

0
2011 2012 2013 2014 2015 9M2016
PART FOUR
Problem Set
What factors should Sally consider when evaluating
whether the four REITs constitute fundamental sound
investment propositions?
Occupancy
Rates Debt Profile

P
Portfolio Diversification
&
P
Market Trends and
Economic Outlook
Compare and analyze the financial profiles of the four
REITs in the case study
Assess the stock market performance of the four REITs in
the case study.
Market Performance

1.6
P
1.4

1.2 CMT
Price to book

1
A
0.8

0.6 SOI

0.4

0.2

0
0.095 0.1 0.105 0.11 0.115 0.12 0.125 0.13 0.135 0.14 0.145

volatility
Based on your responses to previous questions, recommend which REIT units
should be allocated to PAMC’s Prudent Equity Fund, Balance Equity Fund
and Wealth Accumulation Fund.
Potential Wealth Accumulation Fund

Balance Equity Fund

Prudent Equity Fund

Performance
What industry and financial risks is each of the four REITs exposed to?
• Sluggish
Economy
• Redevelopment
Industry

Financial
Manufacturing
slumped

Industry
Financial
• Manufacturing
slumped
• Oversupply
Industry
Financial

Soibuild Group contributed around

24.2% of the REIT’s rent income
Concentration Risk
Base rent+ variable rent 3.8%AHR
or
Preceding year’s rent(1+(CPI+1%)
Industry
Financial

Foreign exchange risk

Do you agree with the statement made in PAMC’s promotional material?
Explain why!
Investment in units of Singapore REITs
can be considered as an excellent
investment opportunity, but it is
important to note that they are

NOT completely

risk-free .
THANK
YOU