General S-REITs Discussion Thread

revhappy

revhappy

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Andrew833 said:
If you link to CDP, REITs investing for long term is as boring as buying IWDA.
Don't really need to monitor the price. Just add more during correction and PO/ Right issue.
Click to expand...
My point is, all these are very technical stuff, frankly I don't even know what rights issue means. I know SIA issued rights issue and my colleague received email about it and he asked me what it is and then I read so many articles to understand what it is.

I understand if the REITs do rights issue if you don't subscribe, you lose out due to dilution or something? I mean so much research and decision making, is it worth it?
 
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dappermen

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Rights issue is not foc
U pay a price /A few cents cheaper than the current price and endedup after the rts issue, The price might drop lower than the rights issue price
Very likely!
Observe mapletree logs



Unless it is an extremely gd stock w gd performance on the stk mkt too…..then maybe 1 could go for the rights




Hospitality, really??



https://edgemarkets-transferred.s3-...sQNsxDF8ii0t8t4e7Pw4UF0HXe4jqvF&itok=SOPaIGeB
 
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soneat

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revhappy said:
My point is, all these are very technical stuff, frankly I don't even know what rights issue means. I know SIA issued rights issue and my colleague received email about it and he asked me what it is and then I read so many articles to understand what it is.

I understand if the REITs do rights issue if you don't subscribe, you lose out due to dilution or something? I mean so much research and decision making, is it worth it?
Click to expand...
Actually, REITs equity rights issue are typically quite standard, not much research and decision making.

As long as one does he basic homework, understand what he is doing, it should be fine.

The problem is many people wants a passive income, want to treat REITs as a good source of passive income but yet keep staring at them and start to panic over the BAU fluctuations.
 
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Andrew833

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revhappy said:
My point is, all these are very technical stuff, frankly I don't even know what rights issue means. I know SIA issued rights issue and my colleague received email about it and he asked me what it is and then I read so many articles to understand what it is.

I understand if the REITs do rights issue if you don't subscribe, you lose out due to dilution or something? I mean so much research and decision making, is it worth it?
Click to expand...
Actually those are very basic when first started out to invest in stock market.
CDP - higher commission from broker but safer for long term investment.
Custodian _ cheap/ low commission from broker but there are risk involve.

Back to REITs;
Of course must study and research a good REIT to buy just like picking a ETF/UT. After that just hold. If there is any right issue, as a shareholder you may need to take action.
Most common are these 2;
Private Placement (PP) - Not for retail investor, minimum need $250,000. More for intuitional investors.
Private Offering (PO) - This is for retail investors.
REITs usually do not hold much free cash flow, when acquiring any property, the manager will need cash, either from loan or PP or PO. In this case, new share will issue out at a discount and will create dilution.
Of course it's better to subscribe the PO, it is also a good opportunity to add more shares at a lower price. If you don't, it's still fine, price will go back up after a period of time.
 
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soneat

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A) Basic Homework
1. Country it operates in and outlook
2. Currency movement (if applicable)
3. Industry
4. Peers/Competitors
5. Asset track record
- How many?
- Location?
- Freehold/Leasehold?
- Cap Rate?
- Does property valuation increase over time? If so, due to ?
6. Tenancy track record
- Tenancy type and mix
- Positive rental reversion?
- Increasing occupancy?
- Duration to backfill?
7. REIT manager record
- Does the REIT manager reports their results adequately ?
- Does asset mgr did genuinely good acquisitions or divestments (i.e. not just for the sake of earning fees) ?

B) On-going Homework
1. If desire to "trade" a bit:
i) buy when RSI <20 and the REIT 3-6m outlook is positive
ii) sell when RSI >80 and the REIT 3-6m outlook is negative.
2. If no desire to "trade",
i) subscribe to REIT newsletter to get notified of any corporate action or announcement.
ii) review the REIT quarterly. If consecutively 3 quarters I see negative news, I will reduce/exit in the following quarter.

Occasionally, I share snippets of my homework, such as in post #1390 in the FLCT thread, which I wrote the following on 16 Jul 2021.
-------------------------------------------------------------------------------------------------
Personally, I do not monitor the price daily. Typically, SG REIT is boring (not as exciting as US mkts).

Take note FLCT is going to do valuation soon (should be Sep). Its logistics property in EU and AU are more valuable now. Coupled with the more favourable exchange rate, its NAV is likely to increase. This is likely to push FLCT to trade at a higher price. In addition, with current yield being quite low, it is also easier for FLCT to have DPU and NAV accretive acquisition.
-------------------------------------------------------------------------------------------------
Fast forward to the the results in Q4 21, we have seen its NAV indeed improved (rather significantly).

Morale of the story is regardless of what you choose to believe/invest (e.g. dividend stocks, growth stocks etc), always do your homework and know what you are doing. Don't be staunch believers of some specific strategies just because its advocated by someone else.
 
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wutawa

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revhappy said:
My point is, all these are very technical stuff, frankly I don't even know what rights issue means. I know SIA issued rights issue and my colleague received email about it and he asked me what it is and then I read so many articles to understand what it is.

I understand if the REITs do rights issue if you don't subscribe, you lose out due to dilution or something? I mean so much research and decision making, is it worth it?
Click to expand...
Both my reits in scb had po and i managed to oversubscribe much more. To me the only difference for custodian is i have less time to take action, 3 days vs 10 days. For clct, i am holding the po shares with some unrealised profits. For mint, i quickly sell after getting the po shares. Even though the current share price is below my selling price, there isnt much difference if div is included.
 
A

Andrew833

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soneat said:
A) Basic Homework
1. Country it operates in and outlook
2. Currency movement (if applicable)
3. Industry
4. Peers/Competitors
5. Asset track record
- How many?
- Location?
- Freehold/Leasehold?
- Cap Rate?
- Does property valuation increase over time? If so, due to ?
6. Tenancy track record
- Tenancy type and mix
- Positive rental reversion?
- Increasing occupancy?
- Duration to backfill?
7. REIT manager record
- Does the REIT manager reports their results adequately ?
- Does asset mgr did genuinely good acquisitions or divestments (i.e. not just for the sake of earning fees) ?

B) On-going Homework
1. If desire to "trade" a bit:
i) buy when RSI <20 and the REIT 3-6m outlook is positive
ii) sell when RSI >80 and the REIT 3-6m outlook is negative.
2. If no desire to "trade",
i) subscribe to REIT newsletter to get notified of any corporate action or announcement.
ii) review the REIT quarterly. If consecutively 3 quarters I see negative news, I will reduce/exit in the following quarter.

Occasionally, I share snippets of my homework, such as in post #1390 in the FLCT thread, which I wrote the following on 16 Jul 2021.
-------------------------------------------------------------------------------------------------
Personally, I do not monitor the price daily. Typically, SG REIT is boring (not as exciting as US mkts).

Take note FLCT is going to do valuation soon (should be Sep). Its logistics property in EU and AU are more valuable now. Coupled with the more favourable exchange rate, its NAV is likely to increase. This is likely to push FLCT to trade at a higher price. In addition, with current yield being quite low, it is also easier for FLCT to have DPU and NAV accretive acquisition.
-------------------------------------------------------------------------------------------------
Fast forward to the the results in Q4 21, we have seen its NAV indeed improved (rather significantly).

Morale of the story is regardless of what you choose to believe/invest (e.g. dividend stocks, growth stocks etc), always do your homework and know what you are doing. Don't be staunch believers of some specific strategies just because its advocated by someone else.
Click to expand...
The most important things to take note;
Sponsor who? Holding how many %
Management holding how many %
These 2 will factor in future growth of the REIT and able to tap sponsor pipeline of properties.

Gearing ratio
Debts maturity management
These 2 Mapletree REITs did the best job.

Dividend trend - up/ down/ flat
NAV trend - up/down/flat
Property Yield - up/ down/flat
 
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dappermen

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mayb can help by stating a rough % or figure - rather than how many...........
Andrew833 said:
The most important things to take note;
Sponsor who? Holding how many %
Management holding how many %
These 2 will factor in future growth of the REIT and able to tap sponsor pipeline of properties.

Gearing ratio
Debts maturity management
These 2 Mapletree REITs did the best job.

Dividend trend - up/ down/ flat
NAV trend - up/down/flat
Property Yield - up/ down/flat
Click to expand...
 
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yumsang

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ＳＴＩ　ｓｗｉｔｃｈｅｄ　ｔｏ　ｃｈａ　ｃｈａ　ｍｏｄｅ？
 
S

soneat

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Andrew833 said:
The most important things to take note;
Sponsor who? Holding how many %
Management holding how many %
These 2 will factor in future growth of the REIT and able to tap sponsor pipeline of properties.

Gearing ratio
Debts maturity management
These 2 Mapletree REITs did the best job.

Dividend trend - up/ down/ flat
NAV trend - up/down/flat
Property Yield - up/ down/flat
Click to expand...
There are many ways to evaluate. Most importantly is must do homework ownself and not just rely on others or analyst reports.
 
Dividends Warrior

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Funds flowing to PLife for the inflation hedge?

01192d05980628d9f7e7e3627c8480ea454d1404.png
 
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