Debt-to-Equity Ratios of REITS and Business Trusts

I have not been watching Real Estate Investment Trust (REIT) and Business Trust space. I am surprised that the Singapore Exchange now has 36 such trusts.

By the nature of REIT and Business Trust, these entities borrow money to fund projects. Naturally I am interested to know the current Debt-to-Equity ratios of these trusts.

Information for the table was extracted from SGX’s StockFacts. D/E (in %) is total debts divided by equity.

Counter D/E % July 2016
Keppel Infrastructure 126.69
Croesus Retail Trust 108.35
Frasers Hospitality Trust 66.96
Viva Industrial Trust 65.45
OUE Commercial Reit 65.36
Mapletree Greater China 61.46
Frasers Commercial Trust 56.50
Mapletree Commercial 56.17
Ascendas Hospitality 55.37
Ascott Residence Trust 55.25
Suntec Reit 55.01
Accordia Golf Trust 54.90
Mapletree Logistic Trust 53.27
Keppel Reit 51.43
Parkway Life Reit 50.63
CapitaMall Trust 48.71
OUE Hospitality Trust 48.46
IREIT Global 47.69
CapitaLand Retail China 46.60
Ascendas Reit 44.75
AIMS AMP Capital Industrial 44.64
Soilbuild Business Space 42.81
Keppel DC Reit 42.32
Mapletree Industrial 41.56
Starhill Global Reit 41.48
Cambridge Industrial Trust 41.33
Frasers Centrepoint Trust 40.83
Saizen Reit 36.36
Indiabulls Properties 35.68
SPH Reit 35.24
Hutchison Port Holdings Trust 34.44
Ascendas India Trust 31.77
Fortune Reit 25.24
CapitaLand Commercial 24.47
First Reit 19.35
Lippo Malls Indonesia Retail 11.00

The next table shows the highest and lowest Debt-to-Equity ratios (top 5 and bottom 5).

Counter D/E % July 2016 Remarks
Keppel Infrastructure 126.69 Top 5
Croesus Retail Trust 108.35
Frasers Hospitality Trust 66.96
Viva Industrial Trust 65.45
OUE Commercial Reit 65.36
Ascendas India Trust 31.77 Bottom 5
Fortune Reit 25.24
CapitaLand Commercial 24.47
First Reit 19.35
Lippo Malls Indonesia Retail 11.00

Note: Debt financing is a complex matter and it cannot be simplified into just a number. At the end, it is about whether the business can fulfill its debt obligations and improve the business operations.

Afternote: There are 2 more to be included in the list:
Sabana Shari’ah Compliant Industrial Reit: 72.42% D/E
Cache Logistics Trust: 66.93% D/E

Disclaimer: The author disclaimed liabilities on use of this post by readers for investment decisions. Use them with caution.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Advertisements
This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s