General S-REITs Discussion Thread

[Dividends Warrior]

Why Singapore REITs keep dropping?

Rate hikes coming in 2022.

 

[Squaredot]

Rate hikes coming in 2022.

That's good news too, for depositors

 

[Shion]

Singapore ranks 5th amongst biggest data centre markets: report

Singapore ranks 5th amongst biggest data centre markets: report

This is amidst Singapore’s existing markets, dense fiber, and array of services.

https://sbr.com.sg/commercial-prope...th-amongst-biggest-data-centre-markets-report

Singapore has ranked fifth amongst the top 10 data centre markets globally, moving up one position from the previous year, according to the latest report by real estate services firm Cushman & Wakefield.

Whilst the country has tempered data centre development via local moratorium, it still finished in the top 10 amidst its strong existing markets, dense fiber, and a wide array of available services. It will remain imperative for the Singapore market to find solutions for future developments.

Cushman & Wakefield APAC data centre advisory group leader Todd Olson mentioned that Asia-Pacific markets continue to perform well as data centre destinations given its growth potential and the rapid development of technology platforms and networks across many markets.

“As e-commerce continues to flourish and cloud connectivity becomes a primary business driver, we expect the data center market growth to intensify in the region with secondary markets gaining prominence and new markets emerging in this space,” Olson said.

The report evaluated over 1,100 data centres around the world, utilising a unique weighted methodology to rank 48 global markets.

 

[发哨子2020]

How Singapore REITs Performed In 2020
https://dollarsandsense.sg/s-reit-report-card-heres-singapore-reits-performed-2020/

 

[NinjaStars]

Rate hikes coming in 2022.

2022 then buy then.

 

[5408854088]

Rate hikes coming in 2022.

crystal ball

 

[MrHighlander]

How about fortune reit ? It pays about 6.5% dividend

 

[IndianChief]

so which is the best reit to buy now? Ascendas reit?

 

[apriliasiao]

so which is the best reit to buy now? Ascendas reit?

bashed and threw out STI but picking up one of its components?

Seriously?

 

[frigatex]

bashed and threw out STI but picking up one of its components?

Seriously?

Equating sti to one of its components with less than 5% weight. Seriously?

 

[DevilPlate]

so which is the best reit to buy now? Ascendas reit?

I bought some recently when the boat U-turn back below $3.

Imo, it is still slightly "undervalued" as compared to other sgx industrial reits.

 

[yumsang]

waiting for few to breakout

 

[Shion]

Some cheer for REITs unitholders

Some cheer for REITs unitholders

https://www.theedgesingapore.com/news/budget-2021/some-cheer-reits-unitholders

Unitholders of REITs are likely to cheer the Budget – for something that wasn’t announced.

In contrast to last year when the government urged landlords to provide relief to their tenants grappling with the crisis, there was no such measure announced by Deputy Prime Minister Heng Swee Keat in his Budget 2021 speech.

As such, the distributable incomes of the REITs, held low by rental relief, could rebound. In particular, retail REITs and industrial REITs with SME tenants could stand to benefit.

"Coupled with the expected economic recovery, this could still help support occupier demand for real estate in Singapore, and pave the way for most sectors of Singapore’s property market to bottom in 2021 and potentially recover in 2022," notes Tay Huey Ying, Head of Research & Consultancy at JLL.

Meanwhile, shareholders of banks are set for less worry.

With forbearance loans - which are not part of the special allowances - down to low levels, there could be more clarity on credit costs.

However, banks tend to set aside more gross provisioning depending on their macro economic variable (MEV) models.

With government support for jobs and businesses, and with the vaccine giving rise to herd immunity, an economic rebound would cause banks to set aside lower general provisions.

Already, Piyush Gupta, CEO of DBS Group Holdings has said his bank's credit costs have likely peaked and could amount to just $1 billion over the next 12-18 months compared to the $3.07 billion taken in FY2020. This alone would boost net profits by $2 billion. DBS announced a net profit of $4.72 billion in FY2020, down 26% y-o-y.

 

[demongod]

STARHILL GLOBAL REIT has announced a choice dividend for effective date 2021-02-04. The terms of the choice dividend are as follows:

Option 1: Elect Stock: Reinvestment price SGD 0.5123

Option 2: Elect Cash: SGD 0.0188 (Default)

anybody know how it works?

 

[torrent06]

STARHILL GLOBAL REIT has announced a choice dividend for effective date 2021-02-04. The terms of the choice dividend are as follows:

Option 1: Elect Stock: Reinvestment price SGD 0.5123

Option 2: Elect Cash: SGD 0.0188 (Default)

anybody know how it works?

https://www.google.com.sg/amp/s/financialhorse.com/distribution-reinvestment-plans-for-singapore-reits/%3famp. Basically for Option 1, they divide your cash dividend by the stated share price to determine how many shares you get in lieu of cash. Pro is you save on commission, settlement charges etc associated with buying direct from the stock market. Con is you will get odd lots which are more difficult to sell. The default is Option 2 (cash dividend) if you don’t take any action.

 

[demongod]

thanks for the explanation

https://www.google.com.sg/amp/s/financialhorse.com/distribution-reinvestment-plans-for-singapore-reits/%3famp. Basically for Option 1, they divide your cash dividend by the stated share price to determine how many shares you get in lieu of cash. Pro is you save on commission, settlement charges etc associated with buying direct from the stock market. Con is you will get odd lots which are more difficult to sell. The default is Option 2 (cash dividend) if you don’t take any action.

 

[homer123]

S-REITs seem to be sliding lower

 

[Shion]

Brokers' take: Lendlease Global Reit a top Orchard Road recovery play for DBS

Brokers' take: Lendlease Global Reit a top Orchard Road recovery play for DBS

https://www.businesstimes.com.sg/co...reit-a-top-orchard-road-recovery-play-for-dbs

DBS Group Research on Thursday maintained Lendlease Global Commercial Reit (Lendlease Global Reit) as its top pick for an Orchard Road recovery play due to attractive risk-to-reward perspective.

The research team believes Lendlease Global Reit is "best leveraged" to deliver stronger metrics given its higher concentration in retail segments with greater upside potential. These segments are food and beverage, luxury, health and beauty, and IT and electronics.

Between Starhill Global Reit and SPH Reit, DBS prefers the former due to its discounted valuation and higher-income visibility from master and anchor leases.

Starhill Global Reit's valuation - which appears to be low - is justified by a shorter lease term remaining of about 45 years compared with the 84 to 91-year range for its peers, DBS said.

On the same note, recovery is priced in at about S$4,450 price per square foot for SPH Reit's Paragon mall. The research team also noted potential downside earnings from the potential non-renewal at the Metro department store in the coming few years.

DBS said its valuations for Orchard Road mall Reits "remain undemanding" and at a discount to sector average at 0.97 times price to net asset value. All three Orchard Road plays are trading at a current 30-80 basis point yield premium to the sector average of 5.8 per cent.

The research team has also noted that Orchard Road malls' shopper traffic and tenant sales lag the broader retail index, where sales have narrowed to pre-Covid-19 levels in December 2020.

"However, we believe that the trend will narrow, driven by various festivities in Q1 2021," DBS said.

It has a "buy" call for Lendlease Global Reit with a target price of S$0.90. The research team also has "hold" calls for both Starhill Global Reit and SPH Reit, with target prices of S$0.55 and S$0.80 respectively.

As at the midday trading break on Thursday, Lendlease Global Reit units were trading 3.1 per cent or 2.5 Singapore cents lower at 78.5 cents, Starhill Global Reit units were trading 2 per cent or S$0.01 higher at S$0.52, while units of SPH Reit were trading 1.2 per cent or S$0.01 lower at S$0.82.

 

[peppermint7]

https://www.google.com/amp/s/financ...powell-signals-fed-keep-buying-150000584.html

Is this news good or no good for REITs? Anyone can decipher? Since bond rates up = REITs down..

 

[Andrew833]

https://www.google.com/amp/s/financ...powell-signals-fed-keep-buying-150000584.html

Is this news good or no good for REITs? Anyone can decipher? Since bond rates up = REITs down..

Bond up mean interest up but this is temporary. Feb will not increase interest now so just market sentiment. Yesterday 10 yr bond drop, today SG Reits all go up.