General S-REITs Discussion Thread

[vsvs24]

https://www.businesstimes.com.sg/co...for-dasin-retail-trust-as-it-posts-s564m-loss

Stock price fell like crazy for the past few days, looks like many other reits with China exposure will similarly be affected

Should sell off before it goes under.

 

[Andrew833]

https://www.businesstimes.com.sg/co...for-dasin-retail-trust-as-it-posts-s564m-loss

Stock price fell like crazy for the past few days, looks like many other reits with China exposure will similarly be affected

Should sell off before it goes under.

There is no point still holding Dasin, this trust is having a bad debts problem, don't expect to turn around soon.
Other China exposure REIT like EC World is also having similar problem, Sasseur REIT is slightly better (debts problem still in the hiding) and CLCT has no financial issue.

 

[Andrew833]

$Dasin Retail Tr(CEDU.SI) $EC World Reit(BWCU.SI) $Sasseur Reit(CRPU.SI) $CapLand China T(AU8U.SI) $BHG Retail Reit(BMGU.SI)

Sasseur REIT is the first outlet mall REIT to be listed in SGX, with an Initial Portfolio comprising four retail outlet malls located in the China, offering investors the opportunity to invest in the country's fast-growing retail outlet mall sector.

When we buy REIT, many people only look at the Gearing Ratio and DPU (dividend). Many information provided to us during the REIT financial report but we overlook it. We trust the management will handle well the REIT, so that we can relax and collect our dividend yearly. They are the experts in the market. No! We need to check and assess them during their quarterly or semi-annually financial report. We need to check if the REIT is still healthy or debt ridden or badly manage or any other issue. Don’t forget it’s our hard earn money.
Please DYODD, this is for my own case study only.
https://dividendnewb.blogspot.com/2022/08/s-reit-with-100-exposure-to-china.html

 

[lunafan]

I believe those REITs with debt in RMB might be holding off their loan refinancing previously as they were expecting China govt to cut rates (which they did recently)

 

[Andrew833]

I believe those REITs with debt in RMB might be holding off their loan refinancing previously as they were expecting China govt to cut rates (which they did recently)

Not all debts are in RMB and risking it for unsuccessful refinancing, I don't think it's a good management.

 

[prophetjul]

Why is Capland China Trust share price so poor? The performance of this stock has been tanking from $1.448 Jan 2021 to the present price of $1.14 ish.
Financial performance looks reasonable but the share price has behaved so poorly.

Any thoughts?

 

[Andrew833]

Why is Capland China Trust share price so poor? The performance of this stock has been tanking from $1.448 Jan 2021 to the present price of $1.14 ish.
Financial performance looks reasonable but the share price has behaved so poorly.

Any thoughts?

China political risk, not easy to went back 1.2x. Unless BB is pushing up.

 

[Shion]

Latest S-Reit acquisitions in industrial and hospitality sectors​

https://www.businesstimes.com.sg/co...sitions-in-industrial-and-hospitality-sectors
S-REIT acquisitions have started to pick up in the year to date despite rising rates, with over 18 deals announced exceeding S$4 billion in total purchase consideration. A number of acquisitions announced were in sectors such as industrial/logistics, office properties, data centres, and hospitality sectors.

Cromwell European Reit (CEReit) in July announced the proposed acquisition of its third logistics asset in the United Kingdom. The freehold logistics property is situated within the Whitehouse Industrial Estate in Preston Brook, south-east of Runcorn, and well-positioned in a distribution location for UK logistics and industrial occupiers including neighbouring operations such as Diageo, YKK, DHL and Phoenix medical supplies. The property is fully occupied on a 10-year triple net lease and the tenancy includes a retail price index-linked rent review at year 5 subject to terms.

CEReit notes that the UK’s logistics sector’s Q1 2022 vacancy is at 3.1 per cent and average rents continued to grow 11.4 per cent in the year-to-March 2022. In terms of industrial investment values, Q1 2022 was at £3.3 billion (S$5.4 billion) and is the second highest first quarter on record just after Q1 2021’s £3.7 billion. CEReit’s portfolio currently has 44 per cent exposure to light industrial/logistics, advancing its strategy of pivoting towards this sector.

Ascendas India Trust also announced in July that it is investing in 2 industrial facilities, part of Casa Grande Phase 2, at Mahindra World City in Chennai. This acquisition is in addition to the earlier forward purchase transaction of an industrial facility, Casa Grande Phase 1, which was completed in May 2022. The trust will fund the development of the Phase 2 project, and upon completion and meeting key conditions, will acquire the entity developing the project.

Ascendas India Trust believes that the acquisition will improve earnings and distributions for unitholders with the pro forma impact on FY21 distribution per unit (DPU) expected to be an additional 0.01 Singapore cent.

In the August month-to-date, Ascendas Reit and Ascott Residence Trust both announced proposed acquisitions.

Ascendas Reit announced that it will be acquiring the Philips Apac Center in Singapore from Philips Electronics which will enter a multi-year leaseback of more than two-thirds of the existing space to become the anchor tenant. The property is leased to a total of 4 tenants and has an occupancy rate of 95.7 per cent and a long weighted average lease to expiry of 4.5 years.

The pro forma impact on the DPU for the financial year ending Dec 31, 2021 is expected to be an accretive 0.045 Singapore cent assuming the proposed acquisition was completed on Jan 1, 2021.

Ascott Residence Trust (ART) announced the proposed acquisition of 9 properties from its sponsor, The Ascott, which includes serviced residences, rental housing and student accommodation across Australia, Japan, Vietnam, France and the United States. The acquisition is expected to grow the trust’s pro forma FY21 distribution per stapled security by 2.8 per cent and its total assets to S$8.3 billion. To fund the acquisition, ART launched a private placement last week raising S$170 million.

ART notes that the addition of the 5 rental housing properties in Japan and a student accommodation in the US will increase its longer-stay portfolio proportion from 17 per cent to 19 per cent, bringing it closer to its target of 25 per cent to 30 per cent. Three of the assets to be acquired are expected to be certified green by 2023, bringing its proportion of green properties to 38 per cent, in line with its target to reach 50 per cent of its portfolio by 2025. SGX RESEARCH

 

[Raynon]

Ireit can buy? Been hitting new lows

 

[prophetjul]

Ireit can buy? Been hitting new lows

Seems to be affected by the very weak Euro.

 

[blackvice]

With QT, expect REITs to further taking the hit.

 

[TehSi99]

Reits coming down again.

Roller coaster ride.

 

[TehSi99]

He is saying investing in Reits is dangerous now.

 

[Shion]

Some office and retail S-REITs could rebound, but expect a 'fear of recession' ahead: DBS​

https://www.theedgesingapore.com/ca...could-rebound-expect-fear-recession-ahead-dbs

 

[revhappy]

Residential rents in Singapore are up by 50 to 70% in the last one year. 2 bedroom condo is going for 4.5 to 5k. It is like raining gold if you are property owner renting out right now.

However, REITs are not going up, it seems it better to convert malls and office building to condos, lol. Does anybody know how all this is going to end? @Dividends Warrior @BBCWatcher

 

[Shion]

Five S-Reits with the lowest gearing ratios​

https://www.businesstimes.com.sg/companies-markets/five-s-reits-with-the-lowest-gearing-ratios
ON average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August 2022. The 5 S-Reits with the lowest gearing ratios reported are Digital Core Reit, Sasseur Reit, Frasers Logistics & Commercial Trust, SPH Reit and IReit Global.

Based on the sector’s average gearing ratio of 36.8 per cent and regulatory limit of 50 per cent, this translates into approximately S$22.6 billion (based on Bloomberg data for total assets multiplied by company-reported gearing ratio) of potential debt headroom for the sector, to fund capital-intensive acquisitions.

• Digital Core Reit reported 25.7 per cent aggregated leverage as of Jun 30, 2022 and estimates a debt headroom of US$194 million at 35 per cent aggregated leverage. The Reit expects to make its first distribution of 2.37 US cents to unitholders on Sep 28 and is prepared to embark on its maiden acquisition of data centres in Frankfurt, Dallas, and Chicago. The acquisition is expected to be DPU-accretive and may be funded with debt. An EGM is expected to be scheduled in the third quarter.
• Sasseur Reit has consistently maintained one of lowest gearing ratios among S-Reits at 26.5 per cent aggregated leverage as of Jun 30, 2022 and estimates a debt headroom of S$904.7 million based on the regulatory limit of 50 per cent. With onshore and offshore debts of approximately S$510.9 million maturing in March 2023, the Reit aims to complete its debt refinancing exercise by end 2022.
• Frasers Logistics & Commercial Trust reported aggregate leverage of 29.2 per cent as of Jun 30, 2022, down 3.9 percentage points from a quarter ago. Based on the regulatory limit of 50 per cent, the Reit has an estimated debt headroom of S$2,877 million. The Reit’s logistics and industrial portfolio maintained full occupancy with no expiries in Q4FY22 while the commercial portfolio reported occupancy rate of 91.3 per cent. The Reit expects the overall operating environment to further improve with strong tenant activity observed, as countries progressively return to normalcy.
• SPH Reit reported 30.1 per cent gearing as of May 31, 2022 and updated that this provides debt headroom flexibility with access to additional liquidity from S$225 million of undrawn revolving credit facility lines. The Reit maintained a high occupancy rate of 97.6 per cent. The Reit’s year-to-date Q3 gross revenue registered an increase of 0.9 per cent year on year to S$211.6 million and declared Q3FY22 DPU of 1.45 cents, increasing 5.1 per cent year on year.
• IReit Global’s aggregate leverage improved from 32.1 per cent as of Dec 31, 2021 to 30.8 per cent as of Jun 30, 2022. This was mainly driven by the 6-year lease extension for 100 per cent of Bonn Campus and a 12-year major new lease for approximately 5,300 sqm data centre space at Sant Cugat Green in Q2 2022. This in turn contributed to the increase in the Reit’s portfolio valuation to surpass the 1.0 billion euro mark.

Gearing ratio, also known as aggregated leverage, is the ratio of a Reit’s total debt to its total assets. This is a metric closely monitored by investors and is often used to assess a Reit’s financial leverage.

A lower gearing ratio could point to greater capacity to undertake more debt when needed for future acquisitions while a higher gearing ratio could lead to credit concerns, especially during economic downturns.

S-Reits have a regulatory leverage limit of 50 per cent, imposed by the Monetary Authority of Singapore (MAS). This limit was increased from 45 per cent in April 2020, to provide S-Reits with more flexibility to manage their capital structure amid the challenging environment from the Covid-19 pandemic. SGX RESEARCH

 

[dappermen]

Sasseur Reit has consistently maintained one of lowest gearing ratios among S-Reits at 26.5 per cent aggregated leverage as of Jun 30, 2022 and estimates a debt headroom of S$904.7 million based on the regulatory limit of 50 per cent. With onshore and offshore debts of approximately S$510.9 million

Wow! gd to know such a gem!!!!!!!!!!!!!!
Tks for sharing clubbie


not down enough leh
jus abit not helpful:

Reits coming down again.

Roller coaster ride.

 

[snowcrabramyeon]

Wow! gd to know such a gem!!!!!!!!!!!!!!
Tks for sharing clubbie

Just hope they quickly settle the refinancing soon.

 

[prophetjul]

SREITs still coming down. Especially Euro REITs

 

[endlssorrow]

Why is Capland China Trust share price so poor? The performance of this stock has been tanking from $1.448 Jan 2021 to the present price of $1.14 ish.
Financial performance looks reasonable but the share price has behaved so poorly.

Any thoughts?

Don’t worry about ur paper lost
Dividends still gao gao