General S-REITs Discussion Thread

[sohguanh]

I think it is not over for S-REIT yet. Still thought boat have moved and today all back down again. I think I will start to also use broker custodian acct in moomoo for S-REIT as paying CDP broker fees of 10-25 per trade very chor on the pocket despite I know I am holding it for long term and unlikely to sell once I bought it.

 

[zeroX26]

I think it is not over for S-REIT yet. Still thought boat have moved and today all back down again. I think I will start to also use broker custodian acct in moomoo for S-REIT as paying CDP broker fees of 10-25 per trade very chor on the pocket despite I know I am holding it for long term and unlikely to sell once I bought it.

WHat you buying uncle? share share your picks...

 

[sohguanh]

WHat you buying uncle? share share your picks...

Now so low basically see one whack one close to their 52 week low as long as they not so jialat. If scared smaller REIT will close shop then wait a while to get the blue chip S-REIT but they still some distance away from all time 52 week low.

 

[stanlawj]

Keppel DC Reit now dropping. Sub $2.00 is possible.

 

[sohguanh]

Keppel DC Reit now dropping. Sub $2.00 is possible.

Follow oldbird that teach me go for 52 week low and this REIT is 52 week low is $1.60 still got lots to go before reach that even if go below $2

 

[zeroX26]

Keppel DC Reit now dropping. Sub $2.00 is possible.

Still VERY far from their 52-wk low.

 

[sohguanh]

Still VERY far from their 52-wk low.

Can try their cousin Keppel Reit now 52 week low $0.83

 

[zeroX26]

Can try their cousin Keppel Reit now 52 week low $0.83

Bought 4000 units last week liao at same lelong price.

 

[stanlawj]

I still think the time to buy SREITS is not here yet. I prefer to wait longer maybe closer to 2026 when J Powell steps down as FOMC chair. In the meantime, SREITS may just go sideways in a shallow downtrending channel, and dividends for some better ones may be able to compensate sufficiently for any capital loss (eg. FCT)

 

[DevilPlate]

I still think the time to buy SREITS is not here yet. I prefer to wait longer maybe closer to 2026 when J Powell steps down as FOMC chair. In the meantime, SREITS may just go sideways in a shallow downtrending channel, and dividends for some better ones may be able to compensate sufficiently for any capital loss (eg. FCT)

Maybe divide yr bullet by 5 shots.
every 5-10% drop fire another shot.

Very unlikely for blue chip reits to drop 50% from here tho

 

[stanlawj]

Keppel DC REIT reports lower 3QFY2023 DPU of 2.492 cents​

https://www.theedgesingapore.com/ca...dc-reit-reports-lower-3qfy2023-dpu-2492-cents

The manager of Keppel DC REIT has reported a lower distribution per unit (DPU) of 2.492 cents for the 3QFY2023 ended Sept 30, a 3.6% decrease from the same period a year ago.

This brings its DPU for the 9MFY2023 to 7.543 cents, 1.2% lower than the 9MFY2022 DPU of 7.634 cents.

For the three-month period, distributable income dropped by 6.5% y-o-y to $43.9 million. The REIT says that this is mainly due to higher finance costs and less favorable forex hedges, which were partially offset by higher finance income and tax savings. Its 9MFY2023 distributable income stands at $135 million, 2.1% lower y-o-y.

Gross revenue for the 3QFY2023 rose by a slight 0.5% y-o-y, to $70.7 million while gross revenue for the 9MFY2023 rose by 2.6% y-o-y to $211.1 million.

Net property income (NPI) rose slightly by 0.8% y-o-y to $64.6 million for the 3QFY2023, and rose by 2.5% y-o-y for the 9MFY2023 to $191.9 million.

The REIT says its increase in its 3QFY2023 gross revenue and NPI were due to contributions from acquisitions and overall positive income reversions and income escalations.

As at Sept 30, the REIT’s portfolio occupancy stood at 98.3% while its weighted average lease expiry (WALE) stood at 7.8 years by lettable area.

The REIT secured new and renewal contracts in Singapore, Australia, Ireland and the Netherlands, with overall positive reversions.

Its aggregate leverage stood at 37.2%, and its available debt headroom stands at $182 million. The REIT has no further refinancing for 2023, with the bulk of debt expiring from 2026 and after.

It has also obtained a multi-currency $120 million sustainability-linked and Islamic financing facility for six years.

Units in Keppel DC REIT closed 2 cents lower or 0.99% down at $2.01 on Oct 16.

As expected, SREITS getting slaughtered after earnings report.
Starting with Keppel DC REIT.

Will Parkway Life REIT with its measly 4% dividend yield survive this round? Reporting only in Jan 2024.

 

[stanlawj]

MUFG plans to sell first dollar AT1 bonds in first for Japanese banks​

MITSUBISHI UFJ Financial Group (MUFG) has mandated banks to sell dollar-denominated Additional Tier-1 (AT1) bonds, in what looks set to be the first such offering in the US currency by any Japanese lender.

The nation’s banks have long issued AT1 notes in yen because of lower borrowing costs. But they may consider selling such debt in US dollars to help mitigate foreign-currency risk in their capital ratios, given they can get squeezed when the yen depreciates, Bloomberg Intelligence credit analysts including Pri De Silva wrote in September.

https://www.businesstimes.com.sg/co...l-first-dollar-at1-bonds-first-japanese-banks

Bond yields are kryptonite to leveraged REITS.
MUFG is telegraphing the world: JGB bond yields are going to (permanently?) rise a lot more %-wise compared to US bonds yields.

(AT1 bonds have no maturity date, so the long-term interest matters)

 

[DevilPlate]

As expected, SREITS getting slaughtered after earnings report.
Starting with Keppel DC REIT.

Will Parkway Life REIT with its measly 4% dividend yield survive this round? Reporting only in Jan 2024.

There is a local Ytuber that cut loss on his Suntec reit and pump into Keppel DC quite recently

 

[stanlawj]

There is a local Ytuber that cut loss on his Suntec reit and pump into Keppel DC quite recently

Josh Tan or Heah Min Ah?
I wonder if the Kep DC REIT bought above $2.00.

Majority of current REITS investor/ytuber are product of ZIRP era. Probably Gabriel Yap is the only credible one.

 

[direbmem]

There is a local Ytuber that cut loss on his Suntec reit and pump into Keppel DC quite recently

Which one?

 

[direbmem]

Seems like the higher interest rates are not priced in, REITs are now starting to fall due to actual impact of higher interest cost..?

 

[DevilPlate]

Which one?

Josh Tan

 

[DevilPlate]

Josh Tan or Heah Min Ah?
I wonder if the Kep DC REIT bought above $2.00.

Majority of current REITS investor/ytuber are product of ZIRP era. Probably Gabriel Yap is the only credible one.

Wah lau that GYap vid kns one….i watch once and sooooo painful to watch…keep selling his course

 

[d5dude]

MUFG plans to sell first dollar AT1 bonds in first for Japanese banks​

MITSUBISHI UFJ Financial Group (MUFG) has mandated banks to sell dollar-denominated Additional Tier-1 (AT1) bonds, in what looks set to be the first such offering in the US currency by any Japanese lender.

The nation’s banks have long issued AT1 notes in yen because of lower borrowing costs. But they may consider selling such debt in US dollars to help mitigate foreign-currency risk in their capital ratios, given they can get squeezed when the yen depreciates, Bloomberg Intelligence credit analysts including Pri De Silva wrote in September.

https://www.businesstimes.com.sg/co...l-first-dollar-at1-bonds-first-japanese-banks

Bond yields are kryptonite to leveraged REITS.
MUFG is telegraphing the world: JGB bond yields are going to (permanently?) rise a lot more %-wise compared to US bonds yields.

(AT1 bonds have no maturity date, so the long-term interest matters)

I dun think this is about JGB yields going up, in fact I think its the opposite. MUFG is worried about the persistent Yen weakness (due to the BOJ's QQE and NIRP), they are worried about the dollar liabilities on their balance sheet, this is why they are trying to borrow dollars to shore up their balance sheet even though it costs a crap ton more than borrowing in Yen.

 

[stanlawj]

I dun think this is about JGB yields going up, in fact I think its the opposite. MUFG is worried about the persistent Yen weakness (due to the BOJ's QQE and NIRP), they are worried about the dollar liabilities on their balance sheet, this is why they are trying to borrow dollars to shore up their balance sheet even though it costs a crap ton more than borrowing in Yen.

There is this thing called hedging to address forex woes.

MUFG had no problems with the 30% USDJPY appreciation from 2022.

Sell-side exists for a reason.