REITScreener Glossary and Terminologies
Market Capit represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares. It is commonly referred to as "market cap," where “cap” represents capitalization - a financial term used for indicating the size of the company. This is specific to the REITs in Singapore Market and can be viewed by Week, Month or Year.
Heat Map is a 2 dimensional representation to show a REIT's performance for 1 year and the more green it is, the more gains. You have the ability to zoom into the graph to see how the REITs outperform one another.
Pattern: The ones that grows that most are the large REITs. The REITs that doesn’t do so well tends to be the smaller REITs.
Top Gainers is the list of REITs that has the highest gains or in the green area
Top Volume is the list of REITs has the highest number of shares or contracts traded in a security or an entire market during a given period of time.
Top Losers is the list of REITs that has the worst performance among all REITs.
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Insight is the list of latest news happening in the REIT Market. Insight is a great information that you can use to know what’s happening in any particular REIT.
Portfolio is the summary of the transactions that you’ve set up in your Portfolio page.
Watchlist is also the summary of the list of REITs that you’ve added in your watchlist
Market Cap Weighted Price Index of REITs
- This is a REITScreener index that shows the overall Market Cap REIT performance of the whole entire REIT sector
- Calculated based on the entire Market Capitalization of the Market similar to how FTSE calculate Market Cap.
- Our REITScreener Index is a pretty reliable indicator of how a REIT Market is performing
- With our own Market Cap chart, we can do our own sectorial Analysis
- This entire Market Cap will be used to calculated the Market Weighted Cap Average of all Yields of a Singapore REIT market.
FTSE ST Real Estate Investment
- This chart shows the overall Market Cap REIT performance of the whole entire REIT sector
- Analyse the sector Yield Spread. Show the entire Yield spread of the entire Market.
- Used to minus the 10-year Singapore Government bond year and that’s the Yield Spread
- This will tell you how much ascentage gain in a dividend angle that you have when you’re investing in a REIT market over and above the risk free REIT.
- Gives you a relative measure of the performance of the whole entire sector
Market Cap Weighted Price/NAV per Unit Index of REITs
- Price-to-Book Ratio over Market Cap Weighted Average
- This tells us how expensive or how cheap the entire sector is.
- The lower the graph, it means that the sector is cheap and higher means the sector is expensive
LEADING INDICATORS (only available in Professional Plan)
Price vs Rental Index - Retail Space
- This tells you what is the relative performance of the rental indexes often price and rental swaps
- What’s important here is that Prices must be supported by Rentals
- If prices go up, rentals should go up as well to see something sustainable.
- This has been used as a leading indicator for us to see how a sector performs. A sector performance is a measure how a REIT will perform next.
- If sector is doing well, chances is that a REIT is doing well as well.
- Following a good performance on an Index, we want to confirm that the REIT itself has a positive RENTAL REVERSION
Vacancy Rates - Retail Space by Location
- This will show you the demand and supply
- If Vacancy rate is very low, it means that demand is very high
- Vacancy rate is high, it means that demand is low
- Demands is inversely correlated with Vacancy Rates
- This can be used as a lagging indicator of Price vs Rental Index
Median Rentals - Retail Space by Location
- Is also an indicator for Price vs Rental Index
Potential Supply Statistics - Retail Space
- If there’s a lot of supply coming in, that’s a lot of supply coming on stream, then the demand catches up
Market Price - is the current price at which an asset or service can be bought or sold. The economic theory contends that the market price converges at a point where the forces of supply and demand meet.
Gearing Ratio - measures the proportion of a company's borrowed funds to its equity. The ratio indicates the financial risk to which a business is subjected, since excessive debt can lead to financial difficulties. A high gearing ratio represents a high proportion of debt to equity, and a low gearing ratio represents a low proportion of debt to equity. The amount of borrowings as a percentage of the asset value
Price-to-Book Ratio - is the ratio of market value of a company's shares (share price) over its book value of equity. The book value of equity, in turn, is the value of a company's assets expressed on the balance sheet. This number is defined as the difference between the book value of assets and the book value of liabilities.A ratio between the unit/share price of the REIT to its NAV per Unit
12-Mth Trailing Yield - is the percentage income your portfolio returned over the past 12 months. It is calculated by taking the weighted average of the yields of the stocks and funds that compose the portfolio.
Market Cap - is the market value of a publicly traded company's outstanding shares. Market capitalization is equal to the share price multiplied by the number of shares outstanding.
NPI YIELD - is one of the metrics used to evaluate a REIT's performance, particularly those that are listed in the Singapore jurisdiction.
Quality Score - is a proprietary scoring system that comprises of 15 individual matrices which are weighted and summed up to a single aggregated value.
NPI CAPRATE - ratio between the net operating income produced by an asset and the original capital cost (the price paid to buy the asset) or alternatively its current market value.
Absolute Valuation - is a business valuation method that uses discounted cash flow (DCF) analysis to determine a company's financial worth. The absolute value method differs from the relative value models that examine what a company is worth compared to its competitors.
Relative Valuation - also called valuation using multiples is the notion of comparing the price of an asset to the market value of similar assets.
Yield Spread -is the difference between the quoted rates of return on two different investments, usually of different credit qualities but similar maturities. It is often an indication of the risk premium for one investment product over another.
Income Support Ratio - this happens when the sponsor assists by making up the difference between the desired rental income and the actual rental income for the REIT.
Gearing (Incl. Perps) - the ratio of a company's loan capital (debt) to the value of its ordinary shares (equity); leverage including the perpetuals.
NPI Interest Cover - is used to determine how easily a company can pay their interest expenses on outstanding debt. This tells the level of risk that the REIT has.
Occupancy Rate - is the ratio of rented or used space to the total amount of available space.
Asset Under Management - Shows the value of all the real estate plus other assets that comes under the REITs management
Asset Enhancement Initiative - Actions taken by management to upgrade and improve the appeal of the real estate to tenants
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by NLA - is calculated across all the tenants in a property and is weighted by the tenant’s lettable area against the total combined area.
by Gross Rent - is calculated across all the tenants in a property and is weighted by the tenant’s income against the income of the other tenants.
The WALE can provide investors with the following information;
- An indication as to the future tenancy costs of the property.
- Commercial buildings with a low WALE and short lease periods tend to have a high turnover of tenants
- Commercial buildings with a high WALE (4+ years) typically have larger corporate tenants who commit to leases of 5 years or more.
- The WALE on a commercial building that has a major tenant who occupies a large proportion of the building is sensitive to the lease term of this major tenant as they have a high weighting across the other tenants in the building.
Weighted Average Debt Maturity - is the weighted average amount of time until the maturities on mortgages in a mortgage-backed security (MBS). This term is used more broadly to describe maturities in a portfolio of debt securities, including corporate debt and municipal bonds
Estimated Interest Cost - is the cumulative amount of interest a borrower pays on a debt obligation over the life of the borrowing. In consumer mortgage loans, this amount should include any points paid to reduce the interest rate on a loan, since points are in effect pre-paid interest.
Management Fee Ratio - measures how much of a fund's assets are used for administrative and other operating expenses.
Management Fee in Units Ratio -
Rental Reversions - The adjustment of rentals to market rentals, either on expiry or at predetermined period(s) as the terms of a lease dictate, or as an adjustment to some form of financial model.
Weighted Average Interest Cost -
Borrowing % Fixed Rate - is an unchanging rate charged on a liability, such as a loan or a mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period.
Portfolio Sector Analysis
- You don’t want to have over exposure in a one particular sector. So, if you have too much exposure in one sector, you may run into a sector specific issue. So, it’s best to be more diverse in your investment. “Don’t place all your eggs in one basket”.
- This will tell you how many of your stocks is great to sell, keep or safe. Risk Management will help your Portfolio as this follows the Quality Score of the REITs.
- This will help you monitor the performance of your Portfolio.
- Alerts can be set up according to Quality Score, Share Price, Valuation Score and Insider Trade
Note: When investing in REIT, there are three important things that you need to consider
- Good Track Record - Is based on historical records and usually a REIT with good track record will likely to perform well in the future as well. This is the Quality Score.
- Future Potential of REIT - this will be discussed during Market Briefs
- Price Right - Price right and the right price to buy is in the Valuation Range
How do you use insights?
- Insights is used to follow what’s happening to the REIT especially that you have a REIT that’s in Portfolio. You want to know what happen with the portfolio. You want to know and search for the news that happened to a particular REIT.
- Or if you have an alert of a REIT and you’ve added it to your watchlist, let’s say you wanted to buy it but then the stock price drops, so your valuation range tells you to buy it. So, the first thing that you need to do is not to buy it but to know why the stock price dropped.
- The News tells you a little bit about the forward direction.
- It tells you who are the institutional players or large ownership of a particular REIT and whether they are buying or selling.
- Following these institutional players will help you enter and ride the performance/ upside performance of the REIT because these are the people who are knowledgeable. These are the people who are usually directors of the REIT.
Distribution Per Unit - The amount of dividends that is being declared for each unit of share
Distribution Yield - Assuming the dividend DPU is constant, how quickly will the dividend pay-back the invested capital
Net Asset Value - What is left after all the assets are sold at the book value and used to pay off all the liabilities
Rights Issue - An offer to existing shareholders to buy a defined proportion of new shares/units according to their fractional ownership
Private Placement - An offer to privileged investors to buy into new shares/units that are being created
Historical NPI Interest Coverage Ratio
- This graph illustrates the historical track record of the REIT’s NPI and Interest Cover
Historical Average Interest Cost
- This graph illustrates the REIT’s historical track record in terms of its average interest cost
Historical Weighted Average Debt Maturity
- This graph shows the REIT’s weighted average amount of time until the maturities on mortgages in a mortgage-backed security
Historical Percentage of Borrowing on Fixed Rate Trend
- This graph shows the trend of the REIT’s borrowing on fixed rate over the years.
Historical DPU (Declared vs Expected)
- This graph shows the historical track record of the amount of cash payments made to individual unitholders of a specified income trust.
Historical (Declared) DPU Yield
- This graph shows the historical ratio of all the distributions paid to unitholders in years.
Historical (Declared) NAV per Unit
- This graph shows the market worth of a mutual fund share over the years.
Share Price/NAV per Unit
- This graph shows the difference between the share price during the trading hours and the value of the asset by the end of the day historically.
Share Price Yield Spread (%)
- This graph illustrates the percentage of share price yield spread calculated using standard deviation or mean.
Historical Management Fee as a Percentage of NPI
- This graph illustrates the historical Management fee as part of the Net Profit Income.
Management & Trustee Fee Taken in Units
- This graph illustrates the REITs Management Fee and Trustee fee paid in units year on year
Historical Acquisition Trend
- This graph shows how often and the REIT’s character in terms of acquiring assets over the years.