General S-REITs Discussion Thread
- Thread starter Dividends Warrior
- Start date
For me diversify a bit. Hold cash and take some of them to buy REITS to get their dividends. But REIT stock also can get merged or delisted just like any other stock listed in SGX. But their mandate to always give dividends is their selling point.
You need to answer the question;
1) Is this a good company?
2) Why you brought it?
3) Fundamental still good?
If the above answer is positive, why not.
Example if FLCT drop to 1.36 or below, will you buy?
Below statement is from a retail investor invest heavily in REITs.
10) The biggest rock: Why Reits will shine when interest rates rise?
A lot of investors fear that rising interest rates will cause REITs to underperform.
This fear stems from a misconception. Historically, REITs have been some of the strongest performers during times of rising interest rates.
There are 3 main factors that contribute to a REIT’s success: Quality of assets, strong sponsor support and a pipeline of properties. REITs are passive investment vehicles. A strong sponsor can support the REIT financially, provide a pipeline and the opportunity to acquire the pipeline, and provide the REIT support to close deals, which are key to the growth of the REIT. Since REITs are a yield product, rents, rental outlook, occupancy and cash flow are key to the valuation of their assets. Operationally, for most REITs, more than 70% of their debt cost is hedged. So interest rate movements are only likely to impact new loans and refinancing.
I will add another 3 reasons why REITs outperform during times of rising interest rates.
#1: Rising Rates Are Commonly The Result of An Improving Economy
Generally, interest rates rise as a result of an improving economy.
All else held equal, rising interest rates hurt all equities, including REITs.
A stronger economy is generally a good thing for Reits.
It results in higher demand for real estate, faster rent growth, and rising occupancy rates.
It more than outweighs the negative impact of slightly higher borrowing costs.
On Feb 9, 2021, CapitaSpring, the 280m tall landmark in Singapore’s CBD was topped out at a ceremony, only 38% of its premium office space was committed.
One year on, the office space which totals 661,000 sq ft in net lettable area (NLA) is 93% leased. Think for yourself: if you owned an office building, would you rather have a strong and growing economy or would you prefer a recession?
#2: Inflation Benefits REITs
The other reason why interest rates may rise is that the rate of inflation is accelerating. REITs provide natural protection against inflation. A growing economy increases the value of REITs because the value of their underlying real estate assets increases. Real estate rents and values tend to increase when prices do.
Remember all investors like to use P/B < 1, now your value of your Reits assets go up, the real value of your debt goes down. The debt is fixed and there is no adjustment for inflation.
Therefore, the value of your equity grows even faster than your asset.
#3: REITs Can Directly Benefit from Higher Rates
Higher interest rates also make real estate less affordable for businesses.
Instead of buying your own office, you are more likely to rent one, which again, leads to rising rents and occupancy rates.
Better business sentiment could imply more rental upside. Segments such as industrial, hotels and offices could benefit more from the improved economic conditions. The same is true for most property sectors.
endlssorrow
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US to set interest hike liao
Gg to all Reits
Gg to all Reits
last year div 12cents quite not bad
Price not moving much. But at least see some movement today.
Seemd so gd as they alwys put it
S-REITs OVERWEIGHT
S-REITs Bi-Weekly Updates
(1-15 Mar 22)
S-REITs remain resilient despite the market upheaval. The FSTREI gained marginally by 0.5%, compared to a slight decline of 0.2% for the FSSTI.
Top outperformer: PREIT, a defensive healthcare REIT, gained 4%. Office REITs KREIT, CICT and SUN gained 5.2%, 1.9% and 1.4% respectively. ELITE rebounded 3.3% after investors realised that its properties are all located in the UK.
Top underperformer: CERT and IREIT dropped 7.2% and 6.2% respectively as their properties are all located in Europe. US REITs MUST, DCREIT, UHU and PRIME declined 4.6%, 4.5%, 4.0% and 3.9% respectively. Retail REITs with exposure to downtown malls are LREIT, SGREIT and SPH, and they declined 4.2%, 4.2% and 1.6% respectively.
Reveal our recommended call & target price: https://bit.ly/3MVPx5m
S-REITs OVERWEIGHTS-REITs Bi-Weekly Updates
(1-15 Mar 22)
S-REITs remain resilient despite the market upheaval. The FSTREI gained marginally by 0.5%, compared to a slight decline of 0.2% for the FSSTI.Top outperformer: PREIT, a defensive healthcare REIT, gained 4%. Office REITs KREIT, CICT and SUN gained 5.2%, 1.9% and 1.4% respectively. ELITE rebounded 3.3% after investors realised that its properties are all located in the UK.Top underperformer: CERT and IREIT dropped 7.2% and 6.2% respectively as their properties are all located in Europe. US REITs MUST, DCREIT, UHU and PRIME declined 4.6%, 4.5%, 4.0% and 3.9% respectively. Retail REITs with exposure to downtown malls are LREIT, SGREIT and SPH, and they declined 4.2%, 4.2% and 1.6% respectively.Reveal our recommended call & target price: https://bit.ly/3MVPx5m
tasslehoffs
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- Dec 1, 2006
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Why you want the price to go up?? The dividend yield is better when its low. I really do not understand people like you. I want to accumulate more... goal to reach 30k shares, nearly there. Sucks price going up now, been dca everytime it goes under $2.3
That's the way for dividend income investors. After you add enough, you will still wish for the price to goes up.
actually i don't plan to sell, so price up or down doesn't matter to me.That's the way for dividend income investors. After you add enough, you will still wish for the price to goes up.
companies pay dividends from their profits/cash flow, not their share price
Yea, but sometimes we need the price to goes up to improve our moods. If not everyday also sian, right?actually i don't plan to sell, so price up or down doesn't matter to me.
companies pay dividends from their profits/cash flow, not their share price
That's the way for dividend income investors. After you add enough, you will still wish for the price to goes up.
Yes, when no more money to buy, want the price to go up.
When want to buy, hope the price can come down.
This is dividend investing mindset.
True. Now I want Lendlease and FLCT to go down
Good stock, add more. Lousy stock divest.
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