General S-REITs Discussion Thread

[DevilPlate]

Wah lau ar…. i wait till neck long long for new HDB bond and today issue 5y at 3.1% nia

 

[d5dude]

Wah lau ar…. i wait till neck long long for new HDB bond and today issue 5y at 3.1% nia

HDB is quasi sovereign, 5 yr SGS yield is only 2.95%, HDB bond yield will not be significantly higher than that.

 

[DevilPlate]

HDB is quasi sovereign, 5 yr SGS yield is only 2.95%, HDB bond yield will not be significantly higher than that.

Earlier this yr was 3.9% when 1y sgs 3.4%

Also timing....they prolly waited till this week to announce so save 0.5 to 1% hahaha

 

[d5dude]

Earlier this yr was 3.9% when 1y sgs 3.4%

Also timing....they prolly waited till this week to announce so save 0.5 to 1% hahaha

You mean last year? There was a 7 year issue in Nov.

Yea that particular bond issuance had particularly high yield, I guess it had something to do with the tight liquidity during that period, I recall some banks offering over 6% for short term deposits. I think that was an outlier, if you go thru HDB's past bond issuance you will not find many bonds issued at a substantial yield gap to SGS.

 

[TehSi99]

I recently reminded myself that I had set a rule that any stock that I want to hold long term, I should have enough conviction to accumulate at least $50k of it.

If I cannot press 'buy' on the counter to accumulate $50k, then I should sell it since I don't have the conviction to buy.

So yesterday I bought 7,000 Frasers Logistics Trust @1.05 to bring my holding above 50k. Luckily I did that yesterday. Of course having said that, prices will crash below 1.00 shortly

I think you shouldn't set monetary terms but % of allocation against your portfolio. Example each stock max 10% or something.

 

[foo9883]

what are the S-reits in your portfolio? i need some inspiration what to buy

 

[demoforce1]

what are the S-reits in your portfolio? i need some inspiration what to buy

Ascendas
Ascott
MIT
MLT

 

[stanlawj]

https://www.businesstimes.com.sg/opinion-features/s-reits-q3-dpu-decline-mostly-line-expectations

S-Reits’ Q3 DPU decline mostly in line with expectations​

 

[Iyarash11]

has the time come for Sreits to chiong up ?

 

[Dividends Warrior]

has the time come for Sreits to chiong up ?

Dun say out loud. Quietly huat in one corner.

 

[lunafan]

https://www.businesstimes.com.sg/co...-reit-sector-overweight-peak-rate-cycle-nears


RHB calling it end of rate cycle

 

[stanlawj]

Countertrend bounce to a lower high should not be mistaken as end of REIT correction cycle.
Sell-side analyst is vested to push narrative "end of rate cycle = end of REITS correction cycle".

Fed funds rate only affects short-term interest rates.
Inflation affects the long-term interest rates.
Biden admin is overspending in attempt to win the 2024 election cycle. Eg. US$127B of student loan has been forgiven up to date. Long term interest rate is on an uptrend due to bond oversupply.

I love REITS, if they have zero gearing in current market. Same as fully paid up (unencumbered) property, fantastic to own today.

https://www.theedgesingapore.com/ca...ullerton-disposes-906400-units-cict-1798-each

Temasek’s Fullerton disposes of 906,400 units in CICT at $1.798 each​

Fullerton, an investment manager that is an indirect subsidiary of Temasek Holdings, has disposed of 906,400 units of CapitaLand Integrated Commercial Trust C38U -0.53% (CICT) C38U -0.53% for a total sum of $1,629,707.20 or $1.798 each.
The disposal was done on Nov 20 via the market.

Following the disposal, Fullerton’s stake in the REIT is now at 0.4982%.

 

[limster]

https://theunnecessaryjob.blogspot.com/2023/11/as-dividend-investor-i-am-having-fun.html

Came across this in thefinance.sg. I think one has to be careful about thinking in black and white that you are either a REIT investor or a BABA investor, dividend vs growth etc.

To me, there is nothing wrong with holding BOTH REITs and growth stocks (my proxy for growth stock is S&P500 as holding individual US stocks has estate duty implications).

The question is the entry price. When REITs are overvalued compared to say the S&P500, then buy more S&P500. If REITs look undervalued, then its time to add REITs.

 

[Mephist0pheLes]

Came across this in thefinance.sg. I think one has to be careful about thinking in black and white that you are either a REIT investor or a BABA investor, dividend vs growth etc.

To me, there is nothing wrong with holding BOTH REITs and growth stocks (my proxy for growth stock is S&P500 as holding individual US stocks has estate duty implications).

The question is the entry price. When REITs are overvalued compared to say the S&P500, then buy more S&P500. If REITs look undervalued, then its time to add REITs.

when u buy S&P500, u are already buying both REITs and growth stocks. so it is really jus whether u wan to overweight the real estate sector.

 

[kickass22]

Came across this in thefinance.sg. I think one has to be careful about thinking in black and white that you are either a REIT investor or a BABA investor, dividend vs growth etc.

To me, there is nothing wrong with holding BOTH REITs and growth stocks (my proxy for growth stock is S&P500 as holding individual US stocks has estate duty implications).

The question is the entry price. When REITs are overvalued compared to say the S&P500, then buy more S&P500. If REITs look undervalued, then its time to add REITs.

I just want to add on that having a clear idea of your asset allocation and the purpose of each asset as part of your allocation is key. Also, diversity in your asset allocation is important but you must be clear why you add that particular asset to your allocation.

Just my 2 cents.

 

[stanlawj]

Came across this in thefinance.sg. I think one has to be careful about thinking in black and white that you are either a REIT investor or a BABA investor, dividend vs growth etc.

To me, there is nothing wrong with holding BOTH REITs and growth stocks (my proxy for growth stock is S&P500 as holding individual US stocks has estate duty implications).

The question is the entry price. When REITs are overvalued compared to say the S&P500, then buy more S&P500. If REITs look undervalued, then its time to add REITs.

As someone who trades alot, I can easily spot the problem with his logic.
"All i know is that the high interest rate environment cannot and will not last indefinitely. "
I thought this would be over by H1 2023, but apparently, not!

Cashflow and liquidity is the issue. In the midst of drawdown, the problem is anyone who can be caught suddenly with liquidity or cashflow crisis that necessitates partial liquidation of portfolio, for example:

1. lawsuit,
2. partner fraud (especially hitting businesses) causing capital calls
3. divorce,
4. health emergency (not even yours, can be your beloved family),
5. major house renovation for damage,
6. job loss

That is why, prudent financial planning is necessary. Only those with large enough cash buffer for liquidity crisis can afford to say "high interest rate environment cannot and will not last indefinitely." These ppl are not ordinary working class Singaporeans whose net worth is primarily tied up in their illiquid homes, while their investment portfolio is fraction of it.

Can you survive 1 to 6 without liquidating your portfolio? If yes, then great, one can hold and wait for the low interest rate to return.

 

[zeroX26]

Came across this in thefinance.sg. I think one has to be careful about thinking in black and white that you are either a REIT investor or a BABA investor, dividend vs growth etc.

To me, there is nothing wrong with holding BOTH REITs and growth stocks (my proxy for growth stock is S&P500 as holding individual US stocks has estate duty implications).

The question is the entry price. When REITs are overvalued compared to say the S&P500, then buy more S&P500. If REITs look undervalued, then its time to add REITs.

Portfolio rebalancing & asset type allocation loh, which unfortunately many don't seem to get it. Just spent some time just now explaining to a friend who wanted to kill her golden goose (good quality reits paying reasonably good dividends) to go all in into US ETFs coz "her money grows faster in there".

 

[sohguanh]

Portfolio rebalancing & asset type allocation loh, which unfortunately many don't seem to get it. Just spent some time just now explaining to a friend who wanted to kill her golden goose (good quality reits paying reasonably good dividends) to go all in into US ETFs coz "her money grows faster in there".

You should tell her the quickest way to grow money faster is play big small in casino tables isn't it? Or place on the total number of the dice thrown for e.g etc etc

 

[zeroX26]

You should tell her the quickest way to grow money faster is play big small in casino tables isn't it? Or place on the total number of the dice thrown for e.g etc etc

That's not being a helpful friend leh.

 

[elvintay07]

Nobody knows lah….next mth oil price went up and then US CPI will bounce up again like roller coaster haha

What talking you? Core CPI don’t exclude energy?