General S-REITs Discussion Thread
- Thread starter Dividends Warrior
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Iyarash11
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Mapletree, I only hold MCT
Mapletree reits div yield is very low.
For industry sector, I'm eyeing FLCT (lower cost)
that's why I no hold any mapletree.
everytime I look at anyone of it, to me is either low div, low capital gain headroom, comparatively higher price or all. end up not getting.
wutawa
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that's why I no hold any mapletree.
everytime I look at anyone of it, to me is either low div, low capital gain headroom, comparatively higher price or all. end up not getting.
U must be very good in stock picking. If i can get 20% capital gain pa, i very happy alrdy.
NewInvestor
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Iyarash11
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ha, more like greedy yet humji
best scoop are FLCT and CDLH around 70c+cos they are cheap enough in mar yet not too risky. Always thinking, is it safe, is it safe? then boat sail away
Those ppl enter around late march to may, if the entry price is right, I don't think 20% gain is difficult. For long term investment.
For short term, my target TP is always 10%, plus minus along the way.
ha, more like greedy yet humji
best scoop are FLCT and CDLH around 70c+cos they are cheap enough in mar yet not too risky. Always thinking, is it safe, is it safe? then boat sail away
Actually is too many choices, all stocks on discount
True .
So I had to grab STI etf .
I sold off about $3+ years ago and saw it went up and up.
So I had to grab STI etf .
I sold off about $3+ years ago and saw it went up and up.
Actually is too many choices, all stocks on discount
The gain of easily 20-40% capital gain in this 2-3 months is equivalent to 4-8 years of accumulative dividend.
And we still collect the future waves of dividends .
5-star dividend warriors.
And we still collect the future waves of dividends .
5-star dividend warriors.
Those ppl enter around late march to may, if the entry price is right, I don't think 20% gain is difficult. For long term investment.
For short term, my target TP is always 10%, plus minus along the way.
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Iyarash11
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Actually is too many choices, all stocks on discount
ya, just banks, etf and reits already end up 9 counters
Shion
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Mapletree Industrial Trust to acquire remaining 60% interest in 14 data centres in US for S299.5 mil
https://www.theedgesingapore.com/ne...ning-60-interest-14-data-centres-us-s2995-mil
Mapletree Industrial Trust launches private placement to raise $350 mil to fund acquisition of data centres
https://www.theedgesingapore.com/ne...placement-raise-350-mil-fund-acquisition-data
https://www.theedgesingapore.com/ne...ning-60-interest-14-data-centres-us-s2995-mil
Mapletree Industrial Trust launches private placement to raise $350 mil to fund acquisition of data centres
https://www.theedgesingapore.com/ne...placement-raise-350-mil-fund-acquisition-data
Shion
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Broker's take: RHB says S-Reits rebound 38% from March, investor interest likely to remain high
Broker's take: RHB says S-Reits rebound 38% from March, investor interest likely to remain high
https://www.businesstimes.com.sg/co...und-38-from-march-investor-interest-likely-to
SINGAPORE real estate investment trusts (S-Reits) have rebounded 38 per cent from March lows and are now trading closer to their long-term mean valuations, a research report by RHB on Tuesday said.
It maintained its "overweight" rating on the sector.
Investor interest is likely to remain high on the central bank’s pledge to keep interest rates low, and signs of liquidity returning, analyst Vijay Natarajan wrote.
S-Reits rallied in the period from March to June, with retail clients emerging as net buyers and institutional investors as net sellers.
"We believe this is due to more account openings seen recently and limited savings options pushing retailers (retail buyers) to S-Reits," he added.
Mr Natarajan pointed out Monetary Authority of Singapore data that showed a record 10 per cent jump in Singapore dollar deposits and a 44 per cent jump in overseas resident deposits year on year.
This was a "testimony to Singapore’s growing safe haven status", he said.
The analyst added that S-Reits are taking advantage of the low-interest rate environment and liquidity to refinance entire loans maturing in 2020 at lower interest costs.
He predicted acquisitions will pick up pace in the second half of the year as financing and market conditions turn more favourable.
"Yield compression post recent rally has raised the possibility of acquisitions, with more opportunities now available in the market due to Covid-19," Mr Natarajan said.
Barring a second Covid-19 wave, S-Reits are also expected to distribute most of their retained income in the second half of the year.
For the second quarter, they are likely to "remain cautious amid fluid market conditions and retain a portion of distributable income, similar to Q1".
Q2 is expected to be a trough quarter for S-Reit earnings due to the impact of rental rebates and deferrals given to tenants during the "circuit-breaker" period.
The government this month passed a law requiring commercial landlords to provide two months of additional rental rebates to qualifying small and medium enterprise (SME) tenants. Meanwhile, industrial and office SME tenants will receive one-month rent rebates.
As most retail S-Reits had already set aside two months of rent rebates, the incremental impact of the law is "minimal", Mr Natarajan said.
SMEs account for under 15 per cent of the total portfolio of office Reits. They account for between 20 and 55 per cent of the total portfolio of industrial Reits, with tenants who qualify for the rebates still being assessed.
RHB said it continues to prefer industrial Reits for their resilience "due to limited telecommuting options, lower rental base, and lack of substitution choices".
This was followed by office and hospitality Reits. Retail Reits were the least preferred sector as the current crisis "has accelerated structural headwinds", Mr Natarajan said.
He added: "We recommend investors to continue to accumulate laggard plays with strong sponsor backing, quality assets and operational track record."
RHB's top picks in the S-Reit sector are: Suntec Reit, Manulife US Reit, ARA Logos Logistics Trust and IReit Global.
It issued "buy" calls for all four: Suntec Reit with a target price (TP) of S$1.78, Manulife US Reit with a US$0.90 TP, ARA Logos Logistics Trust with a S$0.64 TP, and IReit Global with a S$0.83 TP.
Broker's take: RHB says S-Reits rebound 38% from March, investor interest likely to remain high
https://www.businesstimes.com.sg/co...und-38-from-march-investor-interest-likely-to
SINGAPORE real estate investment trusts (S-Reits) have rebounded 38 per cent from March lows and are now trading closer to their long-term mean valuations, a research report by RHB on Tuesday said.
It maintained its "overweight" rating on the sector.
Investor interest is likely to remain high on the central bank’s pledge to keep interest rates low, and signs of liquidity returning, analyst Vijay Natarajan wrote.
S-Reits rallied in the period from March to June, with retail clients emerging as net buyers and institutional investors as net sellers.
"We believe this is due to more account openings seen recently and limited savings options pushing retailers (retail buyers) to S-Reits," he added.
Mr Natarajan pointed out Monetary Authority of Singapore data that showed a record 10 per cent jump in Singapore dollar deposits and a 44 per cent jump in overseas resident deposits year on year.
This was a "testimony to Singapore’s growing safe haven status", he said.
The analyst added that S-Reits are taking advantage of the low-interest rate environment and liquidity to refinance entire loans maturing in 2020 at lower interest costs.
He predicted acquisitions will pick up pace in the second half of the year as financing and market conditions turn more favourable.
"Yield compression post recent rally has raised the possibility of acquisitions, with more opportunities now available in the market due to Covid-19," Mr Natarajan said.
Barring a second Covid-19 wave, S-Reits are also expected to distribute most of their retained income in the second half of the year.
For the second quarter, they are likely to "remain cautious amid fluid market conditions and retain a portion of distributable income, similar to Q1".
Q2 is expected to be a trough quarter for S-Reit earnings due to the impact of rental rebates and deferrals given to tenants during the "circuit-breaker" period.
The government this month passed a law requiring commercial landlords to provide two months of additional rental rebates to qualifying small and medium enterprise (SME) tenants. Meanwhile, industrial and office SME tenants will receive one-month rent rebates.
As most retail S-Reits had already set aside two months of rent rebates, the incremental impact of the law is "minimal", Mr Natarajan said.
SMEs account for under 15 per cent of the total portfolio of office Reits. They account for between 20 and 55 per cent of the total portfolio of industrial Reits, with tenants who qualify for the rebates still being assessed.
RHB said it continues to prefer industrial Reits for their resilience "due to limited telecommuting options, lower rental base, and lack of substitution choices".
This was followed by office and hospitality Reits. Retail Reits were the least preferred sector as the current crisis "has accelerated structural headwinds", Mr Natarajan said.
He added: "We recommend investors to continue to accumulate laggard plays with strong sponsor backing, quality assets and operational track record."
RHB's top picks in the S-Reit sector are: Suntec Reit, Manulife US Reit, ARA Logos Logistics Trust and IReit Global.
It issued "buy" calls for all four: Suntec Reit with a target price (TP) of S$1.78, Manulife US Reit with a US$0.90 TP, ARA Logos Logistics Trust with a S$0.64 TP, and IReit Global with a S$0.83 TP.
NewInvestor
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Will there be an election stock market rally?
Shion
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Phase 2 presents opportunities in retail, hospitality, 'selected' industrial REITs: analysts
Phase 2 presents opportunities in retail, hospitality, 'selected' industrial REITs: analysts
https://www.theedgesingapore.com/br...ospitality-selected-industrial-reits-analysts
SINGAPORE (June 25): As retail businesses and F&B outlets have resumed operations in Phase 2 of the reopening of Singapore’s economy, new opportunities in the real estate investment trusts (REITs) sector have appeared.
UOB KayHian’s top five picks are CapitaLand Mall Trust, Frasers Centrepoint Trust, Ascott Residence Trust, Far East Hospitality Trust and Keppel REIT.
“We rotate and reposition towards retail REITs and hospitality REITs for outperformance in 2H20,” UOBKH analysts Jonathan Koh and Loke Pei Hao write in a note dated June 23.
The rotation towards retail and hospitality REITs, however, does not mean opportunities do not exist in other REITs.
According to DBS Group Research, “selected” mid-cap industrial REITs offer “time-limited” opportunities too.
They include Ascendas India Trust, ARA LOGOS Logistics Trust and Soilbuild Business Space REIT, which have yields of 6.9%, 8.5% and 9.1%, respectively.
The brokerage notes that mid-cap industrial REITs offer relative value with “ample valuation buffers” at a price to net asset value multiple (P/NAV) gap of 0.8 time and yield pick-up of 2.9%.
The (P/NAV) gap is significantly higher than the historical average of 0.3 time and is the second widest gap between them since FY06, it says.
“Valuation spreads between large-cap and mid-cap industrial REITs are too wide to ignore,” DBS analyst Dale Lai and Derek Tan write in a June 25 note.
Moreover, DBS believes that these REITs have the capacity and availability to tap on their sponsors for inorganic growth in the longer term.
Phase 2 presents opportunities in retail, hospitality, 'selected' industrial REITs: analysts
https://www.theedgesingapore.com/br...ospitality-selected-industrial-reits-analysts
SINGAPORE (June 25): As retail businesses and F&B outlets have resumed operations in Phase 2 of the reopening of Singapore’s economy, new opportunities in the real estate investment trusts (REITs) sector have appeared.
UOB KayHian’s top five picks are CapitaLand Mall Trust, Frasers Centrepoint Trust, Ascott Residence Trust, Far East Hospitality Trust and Keppel REIT.
“We rotate and reposition towards retail REITs and hospitality REITs for outperformance in 2H20,” UOBKH analysts Jonathan Koh and Loke Pei Hao write in a note dated June 23.
The rotation towards retail and hospitality REITs, however, does not mean opportunities do not exist in other REITs.
According to DBS Group Research, “selected” mid-cap industrial REITs offer “time-limited” opportunities too.
They include Ascendas India Trust, ARA LOGOS Logistics Trust and Soilbuild Business Space REIT, which have yields of 6.9%, 8.5% and 9.1%, respectively.
The brokerage notes that mid-cap industrial REITs offer relative value with “ample valuation buffers” at a price to net asset value multiple (P/NAV) gap of 0.8 time and yield pick-up of 2.9%.
The (P/NAV) gap is significantly higher than the historical average of 0.3 time and is the second widest gap between them since FY06, it says.
“Valuation spreads between large-cap and mid-cap industrial REITs are too wide to ignore,” DBS analyst Dale Lai and Derek Tan write in a June 25 note.
Moreover, DBS believes that these REITs have the capacity and availability to tap on their sponsors for inorganic growth in the longer term.
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