General S-REITs Discussion Thread

[TehSi99]

Wt. avg YTM for MBH already around 4.25% now . . If the selloff gathers pace should see closer to 5% by the end of the year.

If IG bond etf pays 5% with exposure to quasi sovereigns and bank perps, then why chase REITs for dividend income.

Ya. But already vested some in Reits. Maybe too late to run now.

 

[TehSi99]

Maybe the potential for capital gains is higher when interest rates drop back?

Interest rate will not drop back in near future. Not in 1-2 years time.

Anyone going to hold their Reits for long term?

 

[stanlawj]

Ya. But already vested some in Reits. Maybe too late to run now.

This is typical of a remark of a person not confident of timing the market. I used to be too scared to sell too.

In that case, you should just hold and keep buying REITS as it goes down by every 10%. Just don't buy in all one go, and make sure the REITS is the right one. Eventually it'll hit a floor because of the high dividend yield and stable positive cashflowing property collateral (yeah make sure it is not risky commercial/datacentre REIT in oversupplied markets like USA).

You gotta be consistent in your plan and not deviate halfway. Using this method, I still got out profitably of many strong fundamental stocks that dipped but recovered later on.

 

[homer123]

Reits prices keep dropping and bonds (risk free) interest rates going up.

The gaps between the dividends and interest are narrowing while reits portfolio getting redder.

Reits really badly hit. Not sure if to exit now with potential for more downside to come as interest hike continues.

With SSB hitting 3.21% and T-Bill probably hitting high 3+% soon, it is becoming more risky for reits with only 5+% yield .. As this inflation cannot be solved just by raising interest rate which the FED insist doing as the only tool. Interest rate could stay high for a while as long as inflation cannot be brought down by monetary tool.

 

[homer123]

An old article on S-Reit worth reading to remind SREIT investors..

https://theinvestquest.com/reits-can-also-be-risky-s-reits-fell-75-during-2008-crisis/

REITs can also be risky. S-REITs fell 75% during 2008 crisis.​

 

[churnmaster]

An old article on S-Reit worth reading to remind SREIT investors..

https://theinvestquest.com/reits-can-also-be-risky-s-reits-fell-75-during-2008-crisis/

REITs can also be risky. S-REITs fell 75% during 2008 crisis.​

And in Mar 2020, CLR dropped to 0.78 from a peak in the 1.20s . .

 

[churnmaster]

This is typical of a remark of a person not confident of timing the market. I used to be too scared to sell too.

In that case, you should just hold and keep buying REITS as it goes down by every 10%. Just don't buy in all one go, and make sure the REITS is the right one. Eventually it'll hit a floor because of the high dividend yield and stable positive cashflowing property collateral (yeah make sure it is not risky commercial/datacentre REIT in oversupplied markets like USA).

You gotta be consistent in your plan and not deviate halfway. Using this method, I still got out profitably of many strong fundamental stocks that dipped but recovered later on.

Good suggestion . . In addition to being in the right REITs / BTs, I also make it a point to regularly book some profits when the price moves higher by 5-6% (equivalent to the div yield) and then buy back the same, whenever it moves lower by 5-6%.

 

[1l92041H]

An old article on S-Reit worth reading to remind SREIT investors..

https://theinvestquest.com/reits-can-also-be-risky-s-reits-fell-75-during-2008-crisis/

REITs can also be risky. S-REITs fell 75% during 2008 crisis.​

if i can get CLR at 30 cents

 

[simon_84]

Maybe the potential for capital gains is higher when interest rates drop back?

Nah, to curb inflation, interest rates can only go up for now.

 

[simon_84]

Interest rate will not drop back in near future. Not in 1-2 years time.

Anyone going to hold their Reits for long term?

Probably holding for mid term only as REITs are expected to have sell down when US fed raise interest rates.
Need to manage risk subtly which managing career change.

 

[dappermen]

Interest rate will not drop back in near future. Not in 1-2 years time.

tehsi
Wow! so confident!

 

[stanlawj]

US Fed cannot hold the high interest rate for too long as they conduct QT simultaneously. After some time, they'll need to stop QT and lower interest rate. It's a temporary measure to quell inflation by demand destruction. Based on available public info, it's least 1.5 years more before all hell breaks loose within US. Fed's jurisdiction stops at the border, international dollar problems are not their concern. This is a game of who blinks first.
1. Japan (last month)
2. UK (a few days ago)
3. Australia (today, ** just blinked, reduced rate hike)

Singapore's MAS is not blinking and keeping up with the Fed. More pain for Singapore property (>20% drop for private property price incoming!)

 

[dappermen]

yes this is my point too!

Quoting from US Fed chairman , Powell, they will do ALL it take to let u feel the pain!!!!!!!! in order to lower inflation...........
they are trying to expedite and once all are steady , they will stop rising rates then...... i cannot imagine all these rate-rising will drag to 1yr later?




I dont mind, sg shd continue!!!!!!!! :

More pain for Singapore property.

 

[TehSi99]

tehsi
Wow! so confident!

Because i see interest rates will only continue to go up till Powell is satisfied the damage is enough. This could bring us to another few interest hikes only in different magnitude. Then plateau for a while before Fed decides to bring interest down to boost economy.

 

[dappermen]

will only continue to go up till Powell is satisfied the damage is enough.

yes but it cannt last for more than 1 yr or 2...........

i will fire him if endedup he can only play by raising rates mthly!!!!!!!!!!!!!!!!!!!!!!!!!!

it is so ez , just hire another a clown and then just increase i/rs will do, i can do it too (if he doesnt have any other methods )

 

[stanlawj]

Because i see interest rates will only continue to go up till Powell is satisfied the damage is enough. This could bring us to another few interest hikes only in different magnitude. Then plateau for a while before Fed decides to bring interest down to boost economy.

They are maintaining the rates high for longer, not cutting. The message is sent out now so that the market ought to tighten itself before the Fed does it to minimise market volatility.

The only way to reverse this is for US bond market to crash and go bid-less. i.e. nobody wants to finance the US Govt anymore. This obviously will not happen since everyone is more confident in US Govt & military than Russia or China or Japan. G7 is 100% dependent on US military and tech.

 

[dappermen]

@mrclubbie , got the full version?

Poor returns show expanding S-Reit market isn’t giving joy to investors​

In the next epoch, S-Reits went overseas to acquire some foreign assets. And it was still good.

Then came the wave of Reits with portfolios made up entirely of foreign assets landing in Singapore.

Soon, as Singapore made a name for itself as a regional Reits hub, some of the largest global sponsors started to list their assets here.
https://www.businesstimes.com.sg/op...utm_source=telegram&utm_medium=social-organic

the impact on most Singapore-listed real estate investment trusts (Reits) and companies is not expected to be severe due to their limited exposure to the UK economy and the building-up of hedges.
https://www.businesstimes.com.sg/co...mpact-on-singapore-firms-s-reits-mitigated-by

 

[endlssorrow]

Cannot always base on history tank 30-78%
if like that Reits will never go beyond like FCT $2.48, suntec $1.78, starhill $.54

coz everytjme crisis it will tank down to what? 2008 price meh? So funny

 

[revhappy]

How come REIT index down since 5 years ago, but property prices sky rocketing?

https://www.sgx.com/indices/products/sreit

 

[stanlawj]

How come REIT index down since 5 years ago, but property prices sky rocketing?

https://www.sgx.com/indices/products/sreit

REITS are publicly traded. So the valuations change much more rapidly than property. So they reach fair value (or peak) much earlier. Occasionally, REITS can exceed the book value (either to the upside or the downside) due to yield forecasts. In our current situation, REITS crash is signalling that Singapore property prices should downtrend for the next 18 months.