General S-REITs Discussion Thread

Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
377,205
Reaction score
123,026

Green shoots for retail and hospitality S-Reits amid new pandemic phase​


https://www.businesstimes.com.sg/co...d-hospitality-s-reits-amid-new-pandemic-phase
SINGAPORE has announced simplified safe management measures as well as new vaccinated travel lanes (VTL) and increased VTL quotas as the country enters a new phase of dealing with the pandemic and is streamlining border measures.

Alongside the calibrated re-opening of borders and economy in the region, Asean countries with relaxed border controls saw international flight bookings increase significantly in Jan 2022. Countries such as Indonesia, the Philippines, Singapore, and Thailand also saw return economy-class bookings from travellers in the United Kingdom, United States and Germany rise 19 per cent to 300 per cent month on month in January, according to data from Skyscanner. Skyscanner also expects airlines to announce new schedules and build capacity to facilitate the return of international travel at scale.

In Singapore, Changi Airport passenger movement data has also seen upticks over the past 3 months. More notably, passenger volumes in December 2021 grew over 120 per cent month on month, building on from the 55 per cent month-on-month increase seen in Nov 2021. Despite being just at 15.3 per cent of pre-Covid monthly levels of about 5.7 million (on average across 2017 to 2019), the implementation of VTLs locally have had a positive impact.


As Singapore's border progressively re-opens and the country moves into a new phase of the pandemic, investors' focus may shift towards stocks which potentially benefit from increased international travel, and retail and consumer spending.

Listed on the SGX are 12 S-Reits and property trusts which have significant exposure to Singapore related retail and hospitality assets.

All 12 trusts generated positive returns in the February month to date, averaging 6 per cent total returns.

In the month to date, the top 5 performing retail and hospitality related S-Reits averaged 9 per cent total returns (and 4.8 per cent average total returns on a year-to-date basis). They are CDL HT (10.7 per cent total returns), CICT (10 per cent), Far East HT (9 per cent), Suntec Reit (8.8 per cent) and Frasers HT (6.7 per cent).

The 5 saw a combined institutional net buy of S$67.5 million in the year to date.

Far East Hospitality Trust reported 28.8 per cent and 23.4 per cent quarter-on-quarter increases in revenue per available room/unit in their hotels and serviced residences respectively in Q42021, citing long-stay corporate sources and loosening of travel restrictions as providing a boost to the hospitality industry.

Frasers Centrepoint Trust noted that its portfolio tenants' sales exceeded pre-Covid levels in December 2021 and shopper traffic recovered following the easing of Covid restrictions.

Cessation of work from home (WFH) as the default mode from January 2022 is expected to gradually increase shopper traffic.

Suntec Reit reported higher occupancy rates for its retail properties and noted that tenant sales recovered faster than footfall and exceeded pre-Covid levels in December 2021.

Management expects recovery to be further driven by the return of office workers and easing of safe management measures extended to events. SGX RESEARCH
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
377,205
Reaction score
123,026

Delay in GST hike a short boost for retail REITs​


https://www.theedgesingapore.com/capital/budget-2022/delay-gst-hike-short-boost-retail-reits
Singapore REITs (S-REITs) with retail exposure are expected to see a short boost this year, thanks to the government announcing a delay in the goods and services tax (GST) hike.

In its latest Budget 2022 announcement on Feb 18, finance minister Lawrence Wong announced a happy surprise for Singaporeans. The inevitable increase in GST will once again be delayed. The current GST rate of 7% will increase to 8% from Jan 1, 2023 and again to 9% from Jan 1, 2024.

The government first mentioned to increase GST during Budget 2019, but this move has been delayed several times due to the Covid-19 pandemic. This will be the first time in 15 years that Singapore raises its GST.

To that end, DBS Group Research and RHB Group Research both believe that this will give a short-term boost to local retail REITs as consumers frontload their spending this year.

“The delay [in GST hike] to Jan 2023 is a pleasant surprise. Retail sales will benefit from front loading of purchases this year while an anticipated inflow of tourism receipts should see more traction from 2H2022. We remain positive on REITs with retail exposure such as Frasers Centrepoint Trust (FCT), CapitaLand Integrated Commercial Trust (CICT), Lendlease Global Commercial REIT (LREIT) and Suntec REIT,” say DBS analysts Yeo Kee Yan and Woon Bing Yong.

They also expect consumer staples such as Sheng Siong and Kimly to remain resilient amid the delay in GST hike, while benefiting from the enhancements to the Assurance Package and GST schemes.

Yeo and Woon note that retail sales registered positive y-o-y growth in three out of past four times that GST rates were adjusted up with 1994 the only exception when GST was first introduced. Likewise, median y-o-y growth in retail sales during GST hike years was also higher at +2.95% compared to 2.73% from 1990 to 2021.

“We might see a boost in bigger ticket items ahead of the first GST hike in 2023, which will likely benefit discretionary retail trade, luxury retail goods and jewellery & watches. These trade categories are generally concentrated within the prime Orchard retail stretch, which will come as a boost in retail sales for our Orchard landlords such as Starhill Global REIT,” say the analysts.

Meanwhile, RHB’s Shakhar Jaiswal says, “Retail REITs and consumer companies could benefit from continuing business support for small and medium enterprises (SME) in the F&B, retail, tourism and hospitality sectors, as well as from planned GST hikes driving consumer to bring forward their spending.”

On the overall S-REITs space, Jaiswal expects it to still “outperform”, despite the impending interest rates, due to stronger growth prospects as the economy reopens, and better demand and supply dynamics, which underpin healthy rental reversions.

“Although interest rate hikes are generally unfavourable to REITs, we think the impact is lesser for S-REITs given the expectation of a stronger economic rebound, as well as earnings growth for the sector,” he adds.

Jaiswal prefers industrial REITs for their resilience and growth and view office S-REITs as the best proxy for recovery play, as Singapore’s Grade-A office segment continues to see positive rental reversions.
 
D

dappermen

Banned
Joined
Mar 5, 2017
Messages
8,663
Reaction score
1,017
Hospitality and mice-related reits can see the lights of dawn now

https://research.uobkayhian.com/content_download.jsp?id=66589&h=a7ad143b7a9574e43e64576e610f4db2

🏨 S-REITs

Hospitality REITs - Resumption Of Reopening
🔸Bookings for hotels and serviced residences are expected to pick up as the overcast from the Omicron variant fades.
🔸Singapore has reinstated daily VTL (air) quota back to 15,000 and should benefit from a gradual pick-up in MICE events.

All time fav suntec???



Uob kh recommended target price & call!
 
R

RAKSL38

Senior Member
Joined
Aug 19, 2019
Messages
1,257
Reaction score
426
If i buy Cromwell Reit, is there a difference between buying the the EUR & SGD counter?
 
H

homer123

Arch-Supremacy Member
Joined
Sep 12, 2004
Messages
10,191
Reaction score
5,132
RAKSL38 said:
If i buy Cromwell Reit, is there a difference between buying the the EUR & SGD counter?
Click to expand...
Cromwell Reit used to be my largest holding but its DPU has only gone down since IPO despite all the acquisition. Do your own due diligence
 
T

TehSi99

Master Member
Joined
Oct 5, 2018
Messages
4,892
Reaction score
1,318
Buying opportunities.

Just that the stocks I want to get rid off have to wait from long to longer now.
 
You must log in or register to reply here.
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