General S-REITs Discussion Thread

[limster]

All the reits under STI components in red and STI in slight red but our 3 banks in green holding up STI.
Unbelievable.

I thought its expected - if rates rise, SREIT profit will drop because of higher interest payments, and Banks will earn more from interest payments?

 

[weekaykee]

there's a limit to how much u can put inside CPF, so i dun think what he has inside his cpf is most of his money. i think he mentioned his 1 mil in CPF-OA is less than 20% of his investible wealth or something. and i also dun think he didnt invest in S&P between GFC and 2022.

and he dont buy property dosnt mean he left his money sitting around. he used the money to buy businesses.

I think to criticize a person, u need to first know what he did.

Well, he is desperately trying to make a Youtube career, for himself, at the age of 51, producing an ever increasing number of videos with cheesy clickbait titles/pictures on topics he has no clue about. Tells a lot of about how "wealthy" he really is. He is best ignored. He is relevant only to the ignorant.

 

[OngHuatHuat]

First reit dropped to new low. Now don’t even have money to treat shareholders NTUC vouchers anymore.

 

[zeroX26]

First reit dropped to new low. Now don’t even have money to treat shareholders NTUC vouchers anymore.

This isn't its lowest. Just 2+ yrs back I recall it was 0.205 - 0.21 for quite some time loh.

 

[xoxozone]

First reit dropped to new low. Now don’t even have money to treat shareholders NTUC vouchers anymore.

CICT is even worse!

 

[avviicc]

OUE comm reit something wrong leh.. everyday drop and drop with ENDLESS selling going on . And is not from substantial shareholders becos no annoucement.

same sponsor as First reit and Lippo. Something not quite right with the endless selling

 

[stanlawj]

OUE comm reit something wrong leh.. everyday drop and drop with ENDLESS selling going on . And is not from substantial shareholders becos no annoucement.

same sponsor as First reit and Lippo. Something not quite right with the endless selling

Shanghai Lippo asset, rental still dropping, revaluation downwards coming?
Pursuing growth strategies = more share dilution coming?

Investing $22m in Crowne Plaza enhancement?

All translating to DPU will be trending down while share count still rising?

The problem is the management refuse to buy back shares as they crash but keep issuing new units and diluting the shareholders while simultaneously reducing the DPU. We have may an issue with a generation of REIT managers that have not lived through high interest rates era, and swinging it as it goes with "growth strategies" etc.

 

[yumsang]

flct why like that

 

[stanlawj]

I was wondering, what if UST 10 year yield reach 5% in 2024? How is this going to affect SG REITS?
Normal yield curve is lower yield at shorter duration, higher yield for longer duration.
If shorter duration normalise to 4.5%, longer duration normalise to 5%???

Can they still give dividend out 5% yield? Can they still refinance debt at 4% rate?
For example Keppel DC Reit dividend yield is sub 5% now (10cents or 11cents per share $2.12), it must be pricing in rate cut in 2024. Others include FCT too (11cents at $2.12 = 5.2% but DPU is dropping).

Will REITS crash? Or will the UST be ignored?

Either REIT is a value trap now or UST won't affect SG REIT.

(Same can be said with all the SG condos bought in 2020 - 2022. Mortgage rates will skyrocket in year 3 to year 5 upwards so 2025 is when it starts to bite.)

 

[DevilPlate]

I was wondering, what if UST 10 year yield reach 5% in 2024? How is this going to affect SG REITS?
Normal yield curve is lower yield at shorter duration, higher yield for longer duration.
If shorter duration normalise to 4.5%, longer duration normalise to 5%???

Can they still give dividend out 5% yield? Can they still refinance debt at 4% rate?
For example Keppel DC Reit dividend yield is sub 5% now (10cents or 11cents per share $2.12), it must be pricing in rate cut in 2024. Others include FCT too (11cents at $2.12 = 5.2% but DPU is dropping).

Will REITS crash? Or will the UST be ignored?

Either REIT is a value trap now or UST won't affect SG REIT.

(Same can be said with all the SG condos bought in 2020 - 2022. Mortgage rates will skyrocket in year 3 to year 5 upwards so 2025 is when it starts to bite.)

Just DCA into reits etf.

CFA hit a new low

Right now, banks are offering 2yr fixed mortgage rates at 3.2% which is very low and weird imo.
Even if mortgage rates stay high at 3.5-4%, there will be vy little impact as our stress test is already at 3.5% before rates shot up. We need to see mortgage rates go >5% for an extended period of time to see a meaningful correction of >10% imo OR unemployment rate >5%

*It is increasingly difficult to see a big crash of >10% especially in OCR region where most people buy for ownstay and after soooooo many rounds of CMs.

However, prices can stay stagnant for 5-10 years before another run up again.

 

[OngHuatHuat]

Just DCA into reits etf.

CFA hit a new low

Right now, banks are offering 2yr fixed mortgage rates at 3.2% which is very low and weird imo.
Even if mortgage rates stay high at 3.5-4%, there will be vy little impact as our stress test is already at 3.5% before rates shot up. We need to see mortgage rates go >5% for an extended period of time to see a meaningful correction of >10% imo OR unemployment rate >5%

*It is increasingly difficult to see a big crash of >10% especially in OCR region where most people buy for ownstay and after soooooo many rounds of CMs.

However, prices can stay stagnant for 5-10 years before another run up again.

Can check with you which bank offers 3.2 %?

 

[DevilPlate]

Can check with you which bank offers 3.2 %?

Goto homeseeker subforum and ask the friendly mortgage broker

 

[elvintay07]

Investing in dividend company is like marry a lazy spouse. They just contented to give u what they have and pray nothing happens in the next 10 years. I invest in companies that innovate. Part of my investment is also in REITs (dividend generating due to the nature of REITs). So far no invest to invest in dividend paying companies especially SG ones

 

[revhappy]

Just DCA into reits etf.

CFA hit a new low

Right now, banks are offering 2yr fixed mortgage rates at 3.2% which is very low and weird imo.
Even if mortgage rates stay high at 3.5-4%, there will be vy little impact as our stress test is already at 3.5% before rates shot up. We need to see mortgage rates go >5% for an extended period of time to see a meaningful correction of >10% imo OR unemployment rate >5%

*It is increasingly difficult to see a big crash of >10% especially in OCR region where most people buy for ownstay and after soooooo many rounds of CMs.

However, prices can stay stagnant for 5-10 years before another run up again.

Singapore is enjoying higher rental rate revisions for commercial real estate, kind of opposite of Hong Kong. It seems Singapore is a big beneficiary from all the turmoil and problems in China and Hong Kong. Hence SG REITs are relatively okay compared to global REITs. I think Singapore REIT investors have been lucky in this round. Pity HK and China investors.

 

[DevilPlate]

Singapore is enjoying higher rental rate revisions for commercial real estate, kind of opposite of Hong Kong. It seems Singapore is a big beneficiary from all the turmoil and problems in China and Hong Kong. Hence SG REITs are relatively okay compared to global REITs. I think Singapore REIT investors have been lucky in this round. Pity HK and China investors.

Not sure what u mean by relatively OK when im seeing CLR etf (without Link reit) has been dropping since i started buying earlier this year LOL

 

[revhappy]

Not sure what u mean by relatively OK when im seeing CLR etf (without Link reit) has been dropping since i started buying earlier this year LOL

Yeah, it dont make any sense to me, Singapore has pretty much full occupancy and real estate sector is booming. In the US the Offices are still empty and it is reflected in VNQ price was $111 and now $75.

 

[Mephist0pheLes]

Yeah, it dont make any sense to me, Singapore has pretty much full occupancy and real estate sector is booming. In the US the Offices are still empty and it is reflected in VNQ price was $111 and now $75.

why it dosnt make sense?

interest rate goes up, dividend yield has to go up to maintain the same risk premium, so prices has to go down.

another way to look at it is the discounted value. higher interst rate = lower present value = lower stock price.

 

[DevilPlate]

why it dosnt make sense?

interest rate goes up, dividend yield has to go up to maintain the same risk premium, so prices has to go down.

another way to look at it is the discounted value. higher interst rate = lower present value = lower stock price.

But other dividend stock like ST eng, SGX still remain unscathed

 

[Mephist0pheLes]

But other dividend stock like ST eng, SGX still remain unscathed

Their biz improved and were able to pay higher div yield? St eng used to pay 3+% yield, and is paying 5+% now thru higher div distribution without the share price tanking.

 

[churnmaster]

Their biz improved and were able to pay higher div yield? St eng used to pay 3+% yield, and is paying 5+% now thru higher div distribution without the share price tanking.

SGX’s bottom line has been increasing almost every year (thanks to its derivatives market) and with that it’s DPS. Its valuation though has come off compared to last few years, which is good for dividend investors.