Step by Step guide on how to screen for SG Reits with low debt/equity ratios, high interest coverages, and high dividend yields using StocksCafe

I like trying out stock screeners. Occasionally, I would be surprised by what I might find.

StocksCafe has this feature on its site, and I find it highly useful for screening dividend stocks and in particular SG Reits.

In this post, I will run through on how to screen for Reits with low debt/equity ratios, high interest coverage ratios, and high dividend yields. Please note the order.

My priority is to find look for Reits with low debt loads first, as I am sure with the rising interest rates environment that we are in now, it is perhaps prudent to do that first. After all, a high dividend yield would probably be not sustainable over time if the Reit management has to subsequently allocate a higher percentage of the income to pay for the rising interest payment to its debt.

Login to StocksCafe.

Go to Screener under Tools.

Click on “+Add More Conditions” below.


Then click on “Show Advanced Condition Types”.

Go to Type 5, and choose “Latest SGX REIT Counters”.

Click on Mandatory, click on “Stock in Subset”, then click on “Add Subset”.

There are a few of Reits lists here which you can choose from, but I find this list created by Christopher Ng to be quite recent. There are in total 45 counters within, and we can find the recently IPOed Reits like Digital Core Reit and Daiwa House Logistics Trust within the list.

Low debt/equity ratios

What Is the Debt-to-Equity (D/E) Ratio? (read here)

Name your new screener (in my case I named it SG Reits), and save the new screener.

Click on “+Add More Conditions”. Then click on “Show Advanced Condition Types”.
Under Type 1, choose “Debt/Equity”, tick mandatory. Let’s choose a low baseline number like 0. Click on “Add condition”. And run it.

You might need to refresh your screen. When it is processed, you can click on “Results”.

We want the top 20 Reits with the lowest Debt/Equity ratios. Click on the top of the Debt/Equity column, which will list the Reits with the lowest Debt/Equity ratios from top to bottom.

At no. 20, we have Mapletree Log Tr at 55.30% Debt/Equity.

Go to saved screener, click on your saved screener.

Edit the Debt/Equity Ratio. Ensure the value is set to <= 55.31, click on “Mandatory” and “Update Condition”.


Click “Run”. Then click “Results”. We now have the top 20 SG Reits with the lowest Debt/Equity ratios.

High interest coverage ratio

Interest Coverage Ratio (read here)

Interest coverage ratio is a metric used to determine whether a company can meet its financial obligations.  Generally, the interest coverage ratio is calculated using a company’s earnings before interest and taxes (EBIT) divided by its annual interest expense.

Generally, a higher interest coverage ratio is better than a lower one. A higher ratio represents a stronger ability to meet a company’s interest expenses out of its operating earnings. Too low of an interest coverage ratio can signify that a company may be in peril if its earnings or economic conditions worsen.

Now back to StocksCafe.

Go to saved screener, click on your saved screener again.

Click on “+Add More Conditions”. Then click on “Show Advanced Condition Types”.

Hodlnaut

Hodlnaut is a crypto-borrowing and lending platform that helps investors improve the return on their assets.

Under Type 1, choose “Interest coverage”, and tick mandatory.

If you do not have an account, you can sign up here using my referral link. After you have signed up, you will receive a US$20 sign-up bonus after making a deposit equivalent of US$1,000 in a single transaction on any supported assets within 1 week. Bonus payouts are paid in the same asset deposited. You may make a test deposit of any amount. The deposit equivalent of US$1,000 or more must be completed within one week of the first test deposit.

Let’s choose a low baseline number like 0.

Click on “Add condition”. And run it.

When it is processed, you can click on “Results”.

Note: As highlighted earlier, the higher the interest coverage the better. So among these 20 counters, we list the counters with the highest interest coverage from top to bottom.

At no. 15, we have AIMS APAC Reit with interest coverage of 6.479.

Go to saved screener, click on your saved screener.

Edit the Interest Coverage ratio. Ensure the value is set to >= 6.4, click on “Mandatory” and “Update Condition”. And run it.

When it is processed, you can click on “Results”.

High current dividend yield

Go to saved screener, click on your saved screener again.

Click on “+Add More Conditions”. Then click on “Show Advanced Condition Types”.

Under Type 1, choose “Current Dividend Yield”, tick mandatory. Let’s choose a dividend yield > 4%. Click on “Add condition”. And run it.

When it is processed, you can click on “Results”.

You can now sort the counters by their dividend yield, with the highest dividend yield counters on top, and they also have low debt/equity ratio (among the top 20 lowest) and high interest cover.

Well, there you have it.

You can try out the other metrics listed within and see what lists of counters you get.

However, this screener service is only available to paid subscribers of StocksCafe. You can check out its subscription pricing here.

Nevertheless, you can use my referral code: apenquotes. Just click here. Upon signing up using the referral code, you will get to enjoy being a Trial Global Friend of StocksCafe and test out all features for free for one month!

Please follow me at StocksCafe, via my StocksCafe profile page.


Tiger Brokers

For the Singapore market, Tiger Brokers currently waive the minimum fee and only charge a 0.08% trading fee. This drastically reduces your cost as the minimum fee from other brokers (ranging from SGD 8 such as FSMOne and SCB, to SGD 25 for local brokerages) does add up and can eat into your returns.

Tiger Broker Referral Code:: GPE59H

Sign up here.

FSMOne.com

Typically I use FSMOne.com to invest in funds & ETFs (including money market funds).

If you do not have an account, you can sign up here. Please use my FSMOne referral code: P0031127, when you sign up.

Gemini

As stated by MoneySmart on Jan 22, if you’re looking to optimise trading your crypto with relatively low fees, simple-to-grasp expert UI and ease of purchase with Singapore dollars. then the best crypto exchange in Singapore is Gemini,

If you do not have an account, you can sign up here using my referral link. After you have signed up, once you buy or sell US$100 or more (or 100 USD equivalent of your domestic currency) within 30 days of creating your account, your account will be credited US$10 (or 10 USD equivalent of your domestic currency) worth of bitcoin.

Shopee

I have been using Shopee for a while and think you will like it as much as I do.

Get $10.00 off your first purchase using my code DARREB52.
Download Shopee now and enjoy hot deals at the best prices! Click here.

Happy shopping!

About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room HDB flat. Check out my Facebook Page: https://www.facebook.com/apenquotes.tte.9?ref=bookmarks
This entry was posted in How to guide, Investing methodology, REITS. Bookmark the permalink.

2 Responses to Step by Step guide on how to screen for SG Reits with low debt/equity ratios, high interest coverages, and high dividend yields using StocksCafe

  1. Pingback: REIT Posts of the Week @ 20 August 2022

  2. Pingback: Short update on Portfolio | A Pen Quotes

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