General S-REITs Discussion Thread

addict951

High Honorary Member
Joined
Feb 12, 2002
Messages
188,312
Reaction score
20,546
CapRChina & AREIT vestors, time to gibe instruction (esp. SCB) &/or press ATM liao, pls sound out here hor. Thanks :D Esp. Paul, I know you're long-term vestor of AREIT. :s12:
 

wutawa

Arch-Supremacy Member
Joined
Jan 25, 2003
Messages
13,389
Reaction score
4,391
I lagi worse.. at one point of time (about 1 to 2 months back) my SG paper loss reached 15k+. But having loss more than that type of $ before in the past helps me to be more steady emotionally :s13:

Fast forward today, sg side recovers but still paper loss $2.5k
US side profit S$9.5k

Count myself lucky

What is swabbing?
What 3 month contract?

Your net is earning. Swee lar.
Swabbing was my 3 mths job which does covid19 testing (poke nose, poke throat).
 

peppermint7

Supremacy Member
Joined
Feb 1, 2018
Messages
6,014
Reaction score
890
Your net is earning. Swee lar.
Swabbing was my 3 mths job which does covid19 testing (poke nose, poke throat).

I tell you my maiden trade in US was a disaster. I actually lost $3k overnight -_-

Got a shock. Wanted to exit completely cos not familiar with the trend there mah. But later on i tell myself to keep calm and buy bank. Within 2 weeks bank across the board jumped and turn things around. That's how i found my confidence back. :s13:

After paying lesson fee i am more careful liao. Hope to grow from here. In any case if stuck in mud again
Need to remember to keep calm :s13:

Come to think of it, this year is overall not bad for me.

In April during Sg recovery i make 6.5k
+ current sitting on about 7k profit + 1.3k dividend and small profits here and there over this year, overall got about 15k liao. At least heal my broken heart a bit. (For being badly burnt 10 years ago..)

Which counter are u in now? Now US is in recover phase so things should look up from here. But still got to select counter carefully..

Wishing you huat ah~ :)
 

Andrew833

Arch-Supremacy Member
Joined
Apr 7, 2017
Messages
17,468
Reaction score
6,067
I tell you my maiden trade in US was a disaster. I actually lost $3k overnight -_-

Got a shock. Wanted to exit completely cos not familiar with the trend there mah. But later on i tell myself to keep calm and buy bank. Within 2 weeks bank across the board jumped and turn things around. That's how i found my confidence back. :s13:

After paying lesson fee i am more careful liao. Hope to grow from here. In any case if stuck in mud again
Need to remember to keep calm :s13:

Come to think of it, this year is overall not bad for me.

In April during Sg recovery i make 6.5k
+ current sitting on about 7k profit + 1.3k dividend and small profits here and there over this year, overall got about 15k liao. At least heal my broken heart a bit. (For being badly burnt 10 years ago..)

Which counter are u in now? Now US is in recover phase so things should look up from here. But still got to select counter carefully..

Wishing you huat ah~ :)

No sell no lose!
Yes patience is very important.
I learn alot from my sifu (from youtube).
I also same (For being badly burnt 10 years ago..), that's why I keep learning to improve myself. :D

15k clap clap, I also around that figure.
 

peppermint7

Supremacy Member
Joined
Feb 1, 2018
Messages
6,014
Reaction score
890
No sell no lose!
Yes patience is very important.
I learn alot from my sifu (from youtube).
I also same (For being badly burnt 10 years ago..), that's why I keep learning to improve myself. :D

15k clap clap, I also around that figure.

The thing is i go sell cos im not familiar with the trend there. Thus i lost 3k overnight. :(

For Sg i steady steady hold or cut position and wait until 15k loss minimise to today (i just check) is 1k loss :D

The capital you put in is lesser than mine. So if u make 15k this year you are really good 👍
 

Andrew833

Arch-Supremacy Member
Joined
Apr 7, 2017
Messages
17,468
Reaction score
6,067
The thing is i go sell cos im not familiar with the trend there. Thus i lost 3k overnight. :(

For Sg i steady steady hold or cut position and wait until 15k loss minimise to today (i just check) is 1k loss :D

The capital you put in is lesser than mine. So if u make 15k this year you are really good 👍

You know my capital? :eek:
Yea, 15k from april to dec really great. But I believe still can go higher by end of dec. :D
I still got 14k, waiting for my targets to hit my price.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,748
Reaction score
122,134
PhillipCapital recommends investors 'look beyond near-term weakness' for S-REITs

PhillipCapital recommends investors 'look beyond near-term weakness' for S-REITs

https://www.theedgesingapore.com/ca...estors-look-beyond-near-term-weakness-s-reits

PhillipCapital research analyst Natalie Ong has maintained her “overweight” recommendation for Singapore REITs (S-REITs) even as the FTSE S-REIT Index underperformed compared to the Straits Times Index (STI) and the Real Estate Developer Index.

Within the sector, the hospitality segment showed the best performance with a 16.0% growth, lifted by news of vaccine progress, while the industrial segment fared the worst with a 2.2% decline.

The sector spread yield of 338 basis points over the benchmark 10-year SGS was -0.1 standard deviation (SD).

That said, Ong’s recommendation comes on the back of catalysts expected from acquisitions fuelled by the conducive interest rate environment.

“[The acquisition momentum continues, with Ascendas REIT, CapitaLand Retail China Trust, Mapletree Logistics Trust, Suntec REIT and ARA LOGOS Logistics Trust announcing acquisitions in the last one month,” she says.

“Leasing remained challenging across the sectors as companies held off expansion and relocation. Renewals are expected to form the bulk of leases as businesses try to preserve capital and save on relocation,” she adds.

With that, she has identified her sub-sector preferences as hospitality (upgraded), office and industrial.

“As financial institutions are the top three occupiers of office space, we think this move towards flexible work arrangements will set in motion more aggressive rightsizing of space in the mid-term,” Ong notes, for the office sub-sector.

On the industrial sub-sector, Ong says that “a continued moratorium on data centres is expected to lead to higher rents in the coming years”.

“Leasing of factory space may not fare as well as the global demand recovery is nascent while demand for hi-tech space remains supported by growth in electronics demand,” she says.

For retail, Ong says demand for retail space may be affected as multinational fast-fashion chains such as H&M, Gap and Forever 21 seek to slash their global store counts.

Within the hospitality sub-sector, hotels that are expected to see demands for staycations are luxury or upscale, or resort-like accommodations, she notes.

“With bans on leisure travel likely to remain in place towards the festive season, hoteliers are anticipating a spike in staycation demand,” she says.

To this end, Ong has identified her top picks among S-REITs as Manulife US REIT at “buy” with a target price of 92 US cents ($1.23); Frasers Centrepoint Trust at “accumulate” with a target price of $2.79; and Ascendas REIT “buy” with a target price of $3.61.

As at 4.16pm, units in Manulife US REIT, Frasers Centrepoint Trust and Ascendas REIT are trading at 75 US cents, $2.33 and $3.03 respectively.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,748
Reaction score
122,134
Asia's office Reits prove resilient in Hong Kong and Singapore

Asia's office Reits prove resilient in Hong Kong and Singapore


https://www.straitstimes.com/busine...ts-prove-resilient-in-hong-kong-and-singapore

SINGAPORE (BLOOMBERG) - The office may never reach its past heights in the post-pandemic world but the outlook for Singapore and Hong Kong offices is promising.

Relatively small homes in those cities, short commutes to work and new tech firm tenants bode well for property trusts that focus on those markets.

Domestically focused real estate investment trusts (Reits) in these hubs have outperformed their peers in Australia and Japan this year, and continue to rise on the back of a rotation to economically sensitive stocks. Hong Kong's Champion Reit, whose tenants include Citigroup, Singapore's Keppel Reit and Mapletree Commercial Trust have beaten baskets of equally weighted trusts in Australia and Japan, according to Bloomberg-compiled data.

To be sure, no one expects Singapore and Hong Kong offices to be unscathed from the pandemic. Companies like Citigroup and Mizuho Financial Group in Singapore and Macquarie Group in Hong Kong are giving up office space as demand wavers and they confront a future of some remote work.

Singapore's vacancy rates have already risen to 4.9 per cent in the third quarter from 3.3 per cent a year earlier, while that for Hong Kong's Grade A office spaces was up at 9 per cent in September from 6.1 per cent over the same period last year, according to data from Colliers International Group.

But these cities have kept the virus under relative control. Homes are also too small to make a permanent work-from-home future viable, while unlike London or New York, these cities don't have a significant hinterland of suburbs where workers can flee to. That's probably why their Reits are just about 13 percentage points from erasing losses this year while Australian and Japanese office Reits are down an average of 24 per cent.

Singapore in pole position

Singapore's office market is likely "in one of best positions" globally because living spaces are small, supply is tight, and tech companies are increasingly looking to the country for office space, said Mr Koh Shern-Ling, a portfolio manager at Principal Real Estate Investors. He said after Singapore's office Reits, he likes that of Hong Kong's and then Tokyo's, in that order.

In Singapore, Hong Kong's imposition of a controversial national security law this year is drawing companies, while tech giants such as China's Tencent Holdings as well as Amazon.com are setting up regional headquarters in the South-east Asian city. Billionaire Ray Dalio is the latest to plan a family office in the city-state to run investments and philanthropy.

"These incoming office space users from these newer industries should offset what Singapore may lose in others," said Mr Oh Yoojeong, a Singapore-based fund manager at Aberdeen Standard Investments Asia.

For all its political woes and departures, Hong Kong is drawing Chinese firms in, partly due to a boom in initial public offering activity. TikTok owner ByteDance and Alibaba Group Holding have signed leases to add office space in Hong Kong, while CMB International Capital is among finance firms expanding their presence in the world's priciest property market.

Plans announced this week by the government to cut stamp duties should also bolster deals in the city's commercial property market.

It helps that Reits in these two cities are relatively cheap, while offering attractive dividend yields, especially when compared with bond yields.

Analysts estimate Keppel Reit and Mapletree Commercial will yield 5.4 per cent and 4.1 per cent for the 2021 fiscal year, respectively, while Champion Reit will offer 5.3 per cent. That outstrips the less than 4 per cent yield of Japan's biggest trusts such as Nippon Building Fund, though they are lower than the 7 per cent at Australian Reits like Centuria Office Reit and Australian Unity Office Fund, where share prices have plunged.

Keppel shares rose 1 per cent on Friday (Nov 27), while Mapletree Commercial and Champion were down 0.5 per cent and 0.9 per cent, respectively.

"Remote working will remain prevalent for some time, but the long-term demise of the office is an illusion and it's a good time to buy office Reits in Singapore and Hong Kong," said Mr Joachim Kehr, portfolio and regional manager for Asia Pacific at Centersquare Investment Management.
 

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,748
Reaction score
122,134
Broker's take: Look for recovery and resilience plays in S-Reits, says OCBC

Broker's take: Look for recovery and resilience plays in S-Reits, says OCBC

https://www.businesstimes.com.sg/co...ery-and-resilience-plays-in-s-reits-says-ocbc

YIELD-HUNGRY investors can look to a "recovery basket" and a "resilient basket" when investing in Singapore-listed real estate investment trusts (S-Reits), OCBC Investment Research said in a note on Monday.

This comes as the research team continues to remain "overweight" on S-Reits amid a lower-for-longer interest rate environment, improved sentiment arising from potential Covid-19 vaccines and "undemanding" valuations.

The recovery basket plays on the improvement in sentiment and recovery prospects of Reits in beaten-down sectors such as hospitality and retail.

"The optimism over an imminent availability of Covid-19 vaccines has fuelled confidence that the global economic recovery will gain momentum in 2021," OCBC said. "This has underpinned a rotation to laggards and value stocks."

Its picks for the recovery basket are CapitaLand Integrated Commercial Trust with a fair value (FV) of S$2.38, Mapletree North Asia Commercial Trust with FV of S$1.04, Frasers Centrepoint Trust with FV of S$2.75, Ascott Residence Trust with FV of S$1.20, and CapitaLand Retail China Trust with FV of S$1.35.

OCBC said it observed trends in the latest reporting season that retail Reits had stable occupancy, with some seeing slightly improved take-up quarter on quarter.

However, it noted that some of these might have been at the expense of rents, as the priority of Reit managers was to retain tenants and minimise vacancy risks amid a soft leasing environment.

OCBC also noted that competition from e-commerce will continue to pose structural challenges for brick-and-mortar retail, but it believes the positive vaccine developments have improved the outlook for the retail sub-sector with a potential return to normalcy soon.

"The boost in investors' sentiment could thus lead to a further re-rating, especially for the higher-quality retail Reits," OCBC said. It added that it has turned more positive on hospitality Reits following positive news on Covid-19 vaccine developments.

"While recovery in industry revenue per available room/unit back to pre-Covid-19 levels is likely to happen only in 2022 or 2023, the forward-looking nature of investors leads us to believe the re-rating of hospitality Reits can continue, although volatility in (unit) prices is likely," OCBC said.

The second basket for investors to consider is the "resilient basket". It consists of S-Reits - which OCBC views as beneficiaries of secular growth trends - such as those exposed to data centres, logistics and business parks.

OCBC's picks include Ascendas Reit with FV of S$3.92, Keppel DC Reit with FV of S$3.41, Frasers Logistics & Commercial Trust with FV of S$1.59, Mapletree Industrial Trust with FV of S$3.51, and Manulife US Reit with FV of US$0.84.

"We recommend investors to take advantage of pullbacks to add positions as investors switch to laggards and value stocks," the research team said, noting that these Reits could outperform in the medium to longer term.

OCBC noted that industrial Reits under its coverage largely exhibited relatively resilient operating metrics in the latest reporting period, with nearly all achieving slight improvement in portfolio occupancy rates quarter on quarter. However, it added that rentals of industrial properties had fallen by 0.9 per cent in Q3 from the previous quarter, according to JTC data.

OCBC also noted that the valuation of S-Reits is "undemanding", with the current forward yield spread between the FTSE Straits Times REIT Index and the Singapore government 10-year bond yield now 453 basis points (bps), around 0.6 standard deviation above the 10-year average of 418 bps.

It is now forecasting distributions per unit for the S-Reits under its coverage to register a market cap weighted decline of 5.4 per cent for the current financial year, followed by a "solid rebound" of 15.5 per cent for the next financial year, largely due to a lower-base effect from rental concessions and restrictive border closures in 2020, OCBC said.

While the research team remains "overweight" on S-Reits, it said it is cognisant of the risk of a further potential spike in sovereign bond yields, which could make S-Reits relatively less attractive.

It added that investors should be aware the road to recovery may be challenging, as potential manufacturing bottlenecks and logistical difficulties in administering Covid-19 vaccines to the wider population for herd immunity could lengthen the recovery period.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top