General S-REITs Discussion Thread

[Jirachi]

If you don't know how to pick a stock or REIT, then just buy a ETF.
Individual stock or REIT price may grow faster or slower than a ETF.
ETF hold a basket of stocks or REITs.

Okay. As I thought. So it’s more of not sure which single REIT to pick.

 

[yslvlys]

Okay. As I thought. So it’s more of not sure which single REIT to pick.

Singapore Reit ETF min. Lot is 1 share. Easier for u to DCA compared to min. 100 shares for normal REITS. With Poems and SCB priority banking, there is no min charge so even better.

 

[1.koln]

Just curious. Under what circumstances or factor would someone buy a REIT ETF rather than picking individual REITs?

Would love to hear some opinions.

For me it's for diversification, I feel like less risky

Of course also depends on what are the REIT holdings in the ETF

 

[sohguanh]

Singapore Reit ETF min. Lot is 1 share. Easier for u to DCA compared to min. 100 shares for normal REITS. With Poems and SCB priority banking, there is no min charge so even better.

Side track a bit. Poems no min charge is for Cash Plus account type and they same as tiger broker if 3 months no single SGX trade charge you $15 which is a lot more than tiger broker. But if you frequent trader than poems no min really very good.

 

[Andrew833]

Oh nice to know that you added recently. Because I also added. Currently owned the 3 Mapletree names.

I own all 3 too.

 

[yslvlys]

Side track a bit. Poems no min charge is for Cash Plus account type and they same as tiger broker if 3 months no single SGX trade charge you $15 which is a lot more than tiger broker. But if you frequent trader than poems no min really very good.

Eh @sohguanh no leh, Cash Management account, not just Cash Plus also no min charge for SGX ETF leh. Where did u see the S$15 no SGX activity fee?
https://www.poems.com.sg/no-minimum-commission-sgx-listed-etfs/

 

[Jirachi]

Singapore Reit ETF min. Lot is 1 share. Easier for u to DCA compared to min. 100 shares for normal REITS. With Poems and SCB priority banking, there is no min charge so even better.

For me it's for diversification, I feel like less risky

Of course also depends on what are the REIT holdings in the ETF

Thanks guys for the response. Good to hear different people perspective. I actually already had a plan. Just curious why ETFs for some.

 

[TehSi99]

I own all 3 too.

I own 2 of the 3. Didnt have MLT cos still hesitant due to their China assets. But MLT is top on my watchchlist.

 

[TehSi99]

Thanks guys for the response. Good to hear different people perspective. I actually already had a plan. Just curious why ETFs for some.

Actually, if you dont have any reits now, its ETF could be a good start rather than reit stock picking.

Reit stocking picking need to do some reading, research, understanding and own preference and judgement. It takes some time to be comfortable to do own reit stock picking.

 

[TehSi99]

Youtube and blogger finance guru start talking about buying REITs again lol

They were around before the aggressive rate hike, then disappeared and now appeared again. If they are still not now out, it will be too late when Fed cut rates in Sept. One after another will be cut and paste of another.

 

[sohguanh]

Eh @sohguanh no leh, Cash Management account, not just Cash Plus also no min charge for SGX ETF leh. Where did u see the S$15 no SGX activity fee?
https://www.poems.com.sg/no-minimum-commission-sgx-listed-etfs/

Ok you refer to ETF yes that is correct. I am talking about non-ETF or direct S-Reit or SG stock.

 

[Jirachi]

Actually, if you dont have any reits now, its ETF could be a good start rather than reit stock picking.

Reit stocking picking need to do some reading, research, understanding and own preference and judgement. It takes some time to be comfortable to do own reit stock picking.

Oh. I am fine. I already have a plan with REITs.

 

[Jirachi]

They were around before the aggressive rate hike, then disappeared and now appeared again. If they are still not now out, it will be too late when Fed cut rates in Sept. One after another will be cut and paste of another.

Nothing new. And like I’ve said. A lot of them are selling their broker referrals. They need to be on some stocks “bandwagon”

 

[lunafan]

Since others already shared the reasons why they buy reits ETF, I’ll share some of my reasons for not buying reits ETF

• Additional 0.5-0.8% management fee overhead
• Unable to decide on DRP participation
• Cannot control weightage of individual reit and also sector - Eg, you prefer to have more retail reits and less office reits
• Reits ETF might include reits from certain geographical location which you do not like
• When you buy, you are force to buy the entire basket of reits, which means paying for some bluechip reits with very high PB ratio
• Likewise, when you sell you are selling the entire basket of reits, which means you will be selling some good reits but undervalued due to certain short term bad news
• ETF management may change the weightage of their reits component during their review and there is nothing you can do about it
• ETF tracking error, which might result in around 1-2% difference with underlying reits valuation

 

[sohguanh]

Since others already shared the reasons why they buy reits ETF, I’ll share some of my reasons for not buying reits ETF

• Additional 0.5-0.8% management fee overhead
• Unable to decide on DRP participation
• Cannot control weightage of individual reit and also sector - Eg, you prefer to have more retail reits and less office reits
• Reits ETF might include reits from certain geographical location which you do not like
• When you buy, you are force to buy the entire basket of reits, which means paying for some bluechip reits with very high PB ratio
• Likewise, when you sell you are selling the entire basket of reits, which means you will be selling some good reits but undervalued due to certain short term bad news
• ETF management may change the weightage of their reits component during their review and there is nothing you can do about it
• ETF tracking error, which might result in around 1-2% difference with underlying reits valuation

I get your points but your reasons are generic. It also apply to ppl who buy world index or S&P 500 ETF too. They cannot pick and choose they need to swallow wholesale and all or most of your points apply to them too.

 

[TerryPower]

any tips on choosing SREIT? seems like many are around 2.xx price range and are increasing.

personally I believe in data centres most since all the AI, cloud, IT stuffs are getting hotter.

 

[Dividends Warrior]

2 consecutive weeks of rally for REITs

3 consecutive weeks of REITs rally!

 

[lunafan]

I get your points but your reasons are generic. It also apply to ppl who buy world index or S&P 500 ETF too. They cannot pick and choose they need to swallow wholesale and all or most of your points apply to them too.

World index / SNP500 ETF got so many companies inside, their top 10 holdings only make up like 20-30% of the ETF
Whereas reits ETF top 10 holdings is easily like 60-70%? It's not that hard to DIY.....

 

[sohguanh]

World index / SNP500 ETF got so many companies inside, their top 10 holdings only make up like 20-30% of the ETF
Whereas reits ETF top 10 holdings is easily like 60-70%? It's not that hard to DIY.....

Agree on your S-Reit. But just to inform the world s&p 500 top holdings move the ETF price a lot. You may disagree of cuz but I observe as I have them. The others are like there for show.

 

[Jirachi]

Agree on your S-Reit. But just to inform the world s&p 500 top holdings move the ETF price a lot. You may disagree of cuz but I observe as I have them. The others are like there for show.

There is one ETF which do not have US Tech as top 10 in the holdings. Cannot remember which, but is something like a "World Index". Contains mostly the huge Europe companies ranging from LVMH, Nestle, Novo Nordisk, etc...