Prefer individual reits/ company.
General S-REITs Discussion Thread
- Thread starter Dividends Warrior
- Start date
Prefer individual reits/ company.
Industrial, mall, logistic, data center and office, all good to hold some.
I wonder which reits you holding.
CDL Hospitality Trust
Frasers Centrepoint Trust
Ascott Residence Trust
Mapletree Logistics Trust
Far East Hospitality Trust
OUE Commercial Trust
CapitaCommercial Trust
Frasers Hospitality Trust
Frasers Logistics Trust
Mapletree Commercial Trust
Soilbuild REIT (tiny amount)
Merged
*Ascendas Hospitality Trust (merged with ART)
*OUE Hospitality Trust (merged with OUECT)
Wow, impressive portfolio
Mine;
Mapletree Commercial Trust
Suntec reit
CapitaLand Retail China Trust
Lendlease
ESR
5408854088
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1H2020 S-REIT Earnings Schedule
https://sginvestors.io/sgx-mygateway/2020/07/1h2020-s-reit-earnings-schedule
https://sginvestors.io/sgx-mygateway/2020/07/1h2020-s-reit-earnings-schedule
nice, looks like we only have MCT in common; guess we are using different selection criteria for REITs?
I did some housekeeping and just remembered that I also had Mapletree industrial trust since IPO but never bought more. Total IPO shares + rights issue + DRIP only 2,200 shares in total.
For long term only Mapletree Commercial Trust and CapitaLand Retail China Trust. Looking to add Caiptaland L&C Reit.
The rest are short term.
Mapletree industrial trust, price too high to add more.
Shion
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Big celebrations ahead for marriage between ESR-REIT and Sabana REIT
Big celebrations ahead for marriage between ESR-REIT and Sabana REIT
https://www.theedgesingapore.com/ca...ead-marriage-between-esr-reit-and-sabana-reit
SINGAPORE (July 17): ESR REIT and Sabana REIT yesterday announced that a proposed merger, by way of a trust scheme arrangement, where ESR-REIT will acquire all of Sabana REIT’s units in exchange for new ESR REIT units.
With that, DBS Group Research lead analyst Dale Lai is keeping his “buy” call on ESR-REIT with a target price of 43 cents, while upgrading his recommendation on Sabana REIT to “buy” with a 40 cents target price.
The announcement of this merger comes after activist fund Quarz Capital Management said in November last year that ESR Cayman's cross-ownership of the managers of both REITs puts Sabana at a disadvantage when the two trusts' investment mandates overlap. Hence, to resolve this issue, Quarz called for both the REITs to merge.
This merger however, is not the first for ESR REIT. In 2018, ESR-REIT merged with Viva Industrial Trust in a share and cash offer. VIT unitholders were paid 96 cents per unit of which 90% was with ESR-REIT units, and 10% in cash.
And now with its second merger, the enlarged REIT, if approved by shareholders, is expected to create a sizeable S-REIT of about $4.0 billion in assets under management (AUM) and with a market cap of $1.8 billion, making it the fifth largest industrial S-REIT. This will allow the enlarged REIT to better compete for capital and benefit from a broader institutional base over time.
Together, both the REITs will have 75 properties in Singapore. With most of Sabana REIT’s properties near ESR-REIT’s assets, the manager of the enlarged REIT is can then extract synergies and economies of scale.
“The combined unutilised GFA will add up to about 2.2 million sq ft and offers future organic growth opportunities,” says Lai.
“This will, in our view, translate to a lower cost of capital and with the enlarged S-REIT trading at a premium to NAV, catch up with the larger cap industrial S-REITs. With the enlarged REIT at the doorstep of a potential inclusion into the EPRA NARREIT Index by 1H21, investors should keep a close watch on this stock,” Lai adds.
The analyst believes that this merger is a value accretive deal that has the flexibility and potential to unlock hidden value in the future. Based on FY21 estimates, the deal is 3.4% accretive to ESR-REIT’s DPU and 18.7% to Sabana REIT’s DPU.
As it is, unitholders of the enlarged REIT will be able to enjoy a more stable and diversified earnings base with an increased focus in the higher specifications & logistics properties which should be resilient in a post Covid-19 world.
“We like that the enlarged REIT has the financial flexibility to potentially execute on about 2.2 million of unutilised GFA (+11%) that may be tapped on in the future given its higher development and debt headroom,” adds Lai.
Although the implied offer price of 37.7 cents is around 26% discount to the net asset value, the analyst acknowledges this to be an attractive trade-off, especially for Sabana REIT unitholders, given the opportunity to ride on the longer-term growth prospects of a larger developer-backed REIT.
Furthermore, the exchange ratio of 0.94 times is higher than Sabana REIT’s five-year average of 0.87 times.
“While an implied pricing of around $165 per sq ft on a EV/GFA basis appears to tilt this in favour of the buyer, we see this as fair deal as more capex would need to be invested over time to raise the overall portfolio attributes to better compete in the future,” says Lai.
Overall, the analyst sees this proposed merger as positive for both REITs’ unitholders.
“From a capital market’s perspective, the enlarged REIT will bring about benefits as its stronger size and liquidity will attract more institutional investors, which may be tougher if both REITs trade on their own. In a world where ‘big is better’, we believe this to be a driver to its re-rating in the medium term,” says Lai.
Apart from DBS, other analysts are also sharing a similar positive sentiment on the merger of the two REITs.
CLSA Securities said that the merger is “a good deal” and has kept its “buy” rating on ESR-REIT with a 47 cents target price. It likes the merger for its portfolio diversification and the ability to undertake larger asset enhancement initiatives with minimal disruption to DPU.
Soochow CSSD Capital Markets (SCCM) also has retained its “buy” recommendation with a revised target price of 47 cents.
Although ESR-REIT’s 1H20 results were below estimates due to weaker operations, rebates and retention cause by Covid-19, SCCM analyst Zhao Yiyuan still likes the REIT for its undemanding valuation and mid to long term growth potential.
“The proposed merger with SSREIT increases near term resilience with larger warehouse/logistics segments & unlocks mid-term catalysts through operational synergies, potential index inclusion, and increase in total untapped GFA,” says Zhao
On the other hand, Morningstar Equity Research rates ESR-REIT as “stable” with a higher fair value estimate of 42 cents.
It views this merger positively as it increases the trust’s exposure (in terms of portfolio valuation) to high-specs and logistics properties to 26% and 25%, respectively, from 16% and 23%, enhancing the diversification of its portfolio; it enhances the diversification of the tenant base where the contribution of the top 10 tenants is expected to account for 25% of gross rental income compared with 31% premerger; and it is distribution per-unit accretive to unitholders.
Daiwa however is less bullish on this merger as it maintains its “hold” call on ESR-REIT with a 42 cents target price. Analyst David Lum explain that this is due to the REIT’s results being broadly in line with forecasts, and what he regards a “some lingering uncertainty” around the recurrent post-merger DPU.
Lum however does see medium-term opportunities for the enlarged REIT post-merger in the overseas markets where its sponsor has a presence.
As at 1.05pm, units in ESR-REIT are trading 3.9% higher at 40 cents, while units in Sabana REIT have increased by 5.6% to 38 cents.
Big celebrations ahead for marriage between ESR-REIT and Sabana REIT
https://www.theedgesingapore.com/ca...ead-marriage-between-esr-reit-and-sabana-reit
SINGAPORE (July 17): ESR REIT and Sabana REIT yesterday announced that a proposed merger, by way of a trust scheme arrangement, where ESR-REIT will acquire all of Sabana REIT’s units in exchange for new ESR REIT units.
With that, DBS Group Research lead analyst Dale Lai is keeping his “buy” call on ESR-REIT with a target price of 43 cents, while upgrading his recommendation on Sabana REIT to “buy” with a 40 cents target price.
The announcement of this merger comes after activist fund Quarz Capital Management said in November last year that ESR Cayman's cross-ownership of the managers of both REITs puts Sabana at a disadvantage when the two trusts' investment mandates overlap. Hence, to resolve this issue, Quarz called for both the REITs to merge.
This merger however, is not the first for ESR REIT. In 2018, ESR-REIT merged with Viva Industrial Trust in a share and cash offer. VIT unitholders were paid 96 cents per unit of which 90% was with ESR-REIT units, and 10% in cash.
And now with its second merger, the enlarged REIT, if approved by shareholders, is expected to create a sizeable S-REIT of about $4.0 billion in assets under management (AUM) and with a market cap of $1.8 billion, making it the fifth largest industrial S-REIT. This will allow the enlarged REIT to better compete for capital and benefit from a broader institutional base over time.
Together, both the REITs will have 75 properties in Singapore. With most of Sabana REIT’s properties near ESR-REIT’s assets, the manager of the enlarged REIT is can then extract synergies and economies of scale.
“The combined unutilised GFA will add up to about 2.2 million sq ft and offers future organic growth opportunities,” says Lai.
“This will, in our view, translate to a lower cost of capital and with the enlarged S-REIT trading at a premium to NAV, catch up with the larger cap industrial S-REITs. With the enlarged REIT at the doorstep of a potential inclusion into the EPRA NARREIT Index by 1H21, investors should keep a close watch on this stock,” Lai adds.
The analyst believes that this merger is a value accretive deal that has the flexibility and potential to unlock hidden value in the future. Based on FY21 estimates, the deal is 3.4% accretive to ESR-REIT’s DPU and 18.7% to Sabana REIT’s DPU.
As it is, unitholders of the enlarged REIT will be able to enjoy a more stable and diversified earnings base with an increased focus in the higher specifications & logistics properties which should be resilient in a post Covid-19 world.
“We like that the enlarged REIT has the financial flexibility to potentially execute on about 2.2 million of unutilised GFA (+11%) that may be tapped on in the future given its higher development and debt headroom,” adds Lai.
Although the implied offer price of 37.7 cents is around 26% discount to the net asset value, the analyst acknowledges this to be an attractive trade-off, especially for Sabana REIT unitholders, given the opportunity to ride on the longer-term growth prospects of a larger developer-backed REIT.
Furthermore, the exchange ratio of 0.94 times is higher than Sabana REIT’s five-year average of 0.87 times.
“While an implied pricing of around $165 per sq ft on a EV/GFA basis appears to tilt this in favour of the buyer, we see this as fair deal as more capex would need to be invested over time to raise the overall portfolio attributes to better compete in the future,” says Lai.
Overall, the analyst sees this proposed merger as positive for both REITs’ unitholders.
“From a capital market’s perspective, the enlarged REIT will bring about benefits as its stronger size and liquidity will attract more institutional investors, which may be tougher if both REITs trade on their own. In a world where ‘big is better’, we believe this to be a driver to its re-rating in the medium term,” says Lai.
Apart from DBS, other analysts are also sharing a similar positive sentiment on the merger of the two REITs.
CLSA Securities said that the merger is “a good deal” and has kept its “buy” rating on ESR-REIT with a 47 cents target price. It likes the merger for its portfolio diversification and the ability to undertake larger asset enhancement initiatives with minimal disruption to DPU.
Soochow CSSD Capital Markets (SCCM) also has retained its “buy” recommendation with a revised target price of 47 cents.
Although ESR-REIT’s 1H20 results were below estimates due to weaker operations, rebates and retention cause by Covid-19, SCCM analyst Zhao Yiyuan still likes the REIT for its undemanding valuation and mid to long term growth potential.
“The proposed merger with SSREIT increases near term resilience with larger warehouse/logistics segments & unlocks mid-term catalysts through operational synergies, potential index inclusion, and increase in total untapped GFA,” says Zhao
On the other hand, Morningstar Equity Research rates ESR-REIT as “stable” with a higher fair value estimate of 42 cents.
It views this merger positively as it increases the trust’s exposure (in terms of portfolio valuation) to high-specs and logistics properties to 26% and 25%, respectively, from 16% and 23%, enhancing the diversification of its portfolio; it enhances the diversification of the tenant base where the contribution of the top 10 tenants is expected to account for 25% of gross rental income compared with 31% premerger; and it is distribution per-unit accretive to unitholders.
Daiwa however is less bullish on this merger as it maintains its “hold” call on ESR-REIT with a 42 cents target price. Analyst David Lum explain that this is due to the REIT’s results being broadly in line with forecasts, and what he regards a “some lingering uncertainty” around the recurrent post-merger DPU.
Lum however does see medium-term opportunities for the enlarged REIT post-merger in the overseas markets where its sponsor has a presence.
As at 1.05pm, units in ESR-REIT are trading 3.9% higher at 40 cents, while units in Sabana REIT have increased by 5.6% to 38 cents.
NinjaStars
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Do you mean CapitaLand Integrated and Commercial Trust (CICT)? I also like the idea of CICT and have begun accumulating CMT for the timebeing.
L&C combination of Frasers – Frasers Logistics & Commercial Trust.
Sorry typo.
CapitaLand Retail China Trust AU8U
Looking to add Frasers Logistics & Commercial Trust BUOU
Don't know about CICT.
Shion
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Phillip Capital like US office REITs for attractive dividend yields, long WALES
https://www.theedgesingapore.com/ca...e-reits-attractive-dividend-yields-long-wales
https://www.theedgesingapore.com/ca...e-reits-attractive-dividend-yields-long-wales
Shion
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CGS-CIMB slashes S-REIT growth forecast due to global resurgence of COVID-19 cases
https://www.theedgesingapore.com/ca...forecast-due-global-resurgence-covid-19-cases
https://www.theedgesingapore.com/ca...forecast-due-global-resurgence-covid-19-cases
5408854088
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Singapore retail rents down 3.5% q-o-q in Q2 2020, vacancy rises to 9.6%: URA
https://www.businesstimes.com.sg/re...n-35-q-o-q-in-q2-2020-vacancy-rises-to-96-ura
https://www.businesstimes.com.sg/re...n-35-q-o-q-in-q2-2020-vacancy-rises-to-96-ura
5408854088
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Office rents flat in Q2, but vacancy rises to 12.1%
https://www.businesstimes.com.sg/real-estate/office-rents-flat-in-q2-but-vacancy-rises-to-121
https://www.businesstimes.com.sg/real-estate/office-rents-flat-in-q2-but-vacancy-rises-to-121
5408854088
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Singapore Blue-Chip REITs Latest Earnings: What Investors Should Know
https://blog.seedly.sg/singapore-blue-chip-reits-latest-earnings/
https://blog.seedly.sg/singapore-blue-chip-reits-latest-earnings/
5408854088
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Decline of famed Orchard Road shopping strip shows Singapore's pain
https://www.straitstimes.com/busine...ard-road-shopping-strip-shows-singapores-pain
https://www.straitstimes.com/busine...ard-road-shopping-strip-shows-singapores-pain
Shion
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Sabana Reit clarifies proposed merger not an asset sale, in response to Quarz
Sabana Reit clarifies proposed merger not an asset sale, in response to Quarz
https://www.businesstimes.com.sg/co...merger-not-an-asset-sale-in-response-to-quarz
THE proposed merger of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) with ESR-Reit is not an asset sale, but a merger by way of a trust scheme of arrangement that will allow unitholders to stay invested in a "stronger, larger and more resilient enlarged Reit (real estate investment trust)", Sabana Reit's manager clarified in a bourse filing on Wednesday.
The manager was responding to comments by activist fund Quarz Capital Management, which criticised the implied offer price, representing a 26 per cent discount to Sabana Reit's book value, as "too low". Quarz has a 5 per cent stake in Sabana Reit.
The manager on Wednesday said Sabana Reit's existing portfolio has consistently traded at a discount to net asset value (NAV) in recent years.
However, while NAV "may be a pertinent metric in an asset sale", it is important to consider other factors in the context of a 100 per cent unit swap between two listed entities, it added.
These factors include trading unit prices and the corresponding exchange ratio, pro forma dividend per unit (DPU) accretion, the ability to leverage the benefits of scale, enhancements to portfolio resilience and diversification, and other potential future upsides not available in an asset sale, it added.
Under the proposed merger, Sabana Reit unitholders will be entitled to receive new units in ESR-Reit on an agreed exchange ratio of 0.940 ESR-Reit units for every one unit in Sabana Reit.
The manager said the agreed exchange ratio is at a 4 per cent premium to the exchange ratio implied by the volume-weighted average price of Sabana Reit units for the one-month period up to July 15, 2020, which is the last trading day before the date the proposed merger was announced.
It added that the pro forma DPU accretion of 12.9 per cent for Sabana Reit unitholders, on a H1 2020 annualised adjusted basis, will be "the highest in the history of S-Reit mergers".
The proposed merger will allow Sabana Reit unitholders to continue to have exposure to both Sabana Reit and ESR-Reit assets, and benefit from the enlarged scale and future growth opportunities available to the enlarged Reit, the manager said.
Other benefits include improved trading liquidity in the enlarged Reit's units, and greater investor interest.
The manager added that there were several challenges involving an asset sale, including searching for willing and approved buyers that can acquire all Sabana Reit's assets on a portfolio basis at NAV, and the "relatively high" transaction costs that an asset sale on a portfolio basis may incur.
Units of Sabana Reit ended Tuesday at 38 Singapore cents, down 0.5 cent or 1.3 per cent. Units of ESR-Reit closed flat at 38.5 cents.
Sabana Reit clarifies proposed merger not an asset sale, in response to Quarz
https://www.businesstimes.com.sg/co...merger-not-an-asset-sale-in-response-to-quarz
THE proposed merger of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) with ESR-Reit is not an asset sale, but a merger by way of a trust scheme of arrangement that will allow unitholders to stay invested in a "stronger, larger and more resilient enlarged Reit (real estate investment trust)", Sabana Reit's manager clarified in a bourse filing on Wednesday.
The manager was responding to comments by activist fund Quarz Capital Management, which criticised the implied offer price, representing a 26 per cent discount to Sabana Reit's book value, as "too low". Quarz has a 5 per cent stake in Sabana Reit.
The manager on Wednesday said Sabana Reit's existing portfolio has consistently traded at a discount to net asset value (NAV) in recent years.
However, while NAV "may be a pertinent metric in an asset sale", it is important to consider other factors in the context of a 100 per cent unit swap between two listed entities, it added.
These factors include trading unit prices and the corresponding exchange ratio, pro forma dividend per unit (DPU) accretion, the ability to leverage the benefits of scale, enhancements to portfolio resilience and diversification, and other potential future upsides not available in an asset sale, it added.
Under the proposed merger, Sabana Reit unitholders will be entitled to receive new units in ESR-Reit on an agreed exchange ratio of 0.940 ESR-Reit units for every one unit in Sabana Reit.
The manager said the agreed exchange ratio is at a 4 per cent premium to the exchange ratio implied by the volume-weighted average price of Sabana Reit units for the one-month period up to July 15, 2020, which is the last trading day before the date the proposed merger was announced.
It added that the pro forma DPU accretion of 12.9 per cent for Sabana Reit unitholders, on a H1 2020 annualised adjusted basis, will be "the highest in the history of S-Reit mergers".
The proposed merger will allow Sabana Reit unitholders to continue to have exposure to both Sabana Reit and ESR-Reit assets, and benefit from the enlarged scale and future growth opportunities available to the enlarged Reit, the manager said.
Other benefits include improved trading liquidity in the enlarged Reit's units, and greater investor interest.
The manager added that there were several challenges involving an asset sale, including searching for willing and approved buyers that can acquire all Sabana Reit's assets on a portfolio basis at NAV, and the "relatively high" transaction costs that an asset sale on a portfolio basis may incur.
Units of Sabana Reit ended Tuesday at 38 Singapore cents, down 0.5 cent or 1.3 per cent. Units of ESR-Reit closed flat at 38.5 cents.
the reporter went there early morning?
at 5pm yesterday, the crowd looks much better than mid jun
was wondering how come got tourist
5408854088
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Singapore retail sales fall 27.8% in June after partial reopening
https://www.businesstimes.com.sg/go...ales-fall-278-in-june-after-partial-reopening
https://www.businesstimes.com.sg/go...ales-fall-278-in-june-after-partial-reopening
5408854088
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S-REIT Report Card: Here’s How Singapore REITs Performed In Third Quarter 2020
https://dollarsandsense.sg/s-reit-report-card-heres-singapore-reits-performed-third-quarter-2020/
https://dollarsandsense.sg/s-reit-report-card-heres-singapore-reits-performed-third-quarter-2020/
Thanks but is the link correct ?
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