General S-REITs Discussion Thread

[TehSi99]

Not just CICT
DBS also buys CLAR, MIT, MLT, etc

These are institutions top sellers.

https://view.officeapps.live.com/op...04%20Nov%202024%29_0.xlsx&wdOrigin=BROWSELINK

 

[sky1978]

Interesting that banks want to invest in REITS. Invest in US stocks better? Or REITS income is better for a bank?

When banks hold positions in certain stocks, they may be buying them for risk management purposes against structured products sold to their HNW clients. For example, if they sell certain call products against certain counters, they will need a certain number of shares to cover those risks and legally, those shares belong to the bank because they exercise full voting rights.

We get to see DBS disclosure because Temasek was affected, and they have to make that disclosure. DBS at the entity level never crossed that 5% mark to become a substantial shareholder but Temasek via a few groups below them has a consolidated position of more than 20%, so whenever any of their entities under them (controlled or deemed controlled) buys or sells, they are obliged to disclose.

 

[stanlawj]

Gabriel Yap tooting his own horn.
TLDR: SREITS are still a buy, except Parkway Life REIT.
(that's what I get from listening everything).

CICT is mentioned (buy below $2).

 

[TehSi99]

CICT still looks weak.

 

[ctan84]

CICT still looks weak.

But refusing to go below 1.96 leh...

 

[stanlawj]

Bought FCT and CFA this morning.
I still think UST 10yr bond yield is near the top or already topped.

 

[Jirachi]

Bought FCT and CFA this morning.
I still think UST 10yr bond yield is near the top or already topped.

What is FCT? Or is it FLCT?

 

[stanlawj]

What is FCT? Or is it FLCT?

Not the same. FCT = Frasers Centrepoint Trust

 

[TehSi99]

But refusing to go below 1.96 leh...

Patience.

Sentiments on reits is negative now. I have stopped buying reits for now as seems always will have something to worry about and cause the share price to come down eventually.
From red to green and now red again for me. Riding the up and down.

 

[ctan84]

Patience.

Sentiments on reits is negative now. I have stopped buying reits for now as seems always will have something to worry about and cause the share price to come down eventually.
From red to green and now red again for me. Riding the up and down.

Only added some more Fraser log yesterday at 0.965 for my 2nd trench. Can slowly slowly buy in at a few hundred units each time.

 

[DevilPlate]

Nobody add Capland Ascendas today?

 

[TehSi99]

https://www.businesstimes.com.sg/in...l-says-no-need-hurry-rate-cuts-economy-strong

 

[DevilPlate]

Most reits like drop back to June/July prices liao and that time Fed haven’t started cutting rates

In June/July, Sora rate about 3.5% and now 2.9%

 

[Jirachi]

Is the recent US yields. Spiked over Trump

 

[DevilPlate]

Is the recent US yields. Spiked over Trump

Doesn't matter as long bluechip Sreits can refinance their debts at <3.5% moving forward

Cannot say the same for scammy foreign reits and sampan reits.

 

[lunafan]

Most reits like drop back to June/July prices liao and that time Fed haven’t started cutting rates

In June/July, Sora rate about 3.5% and now 2.9%

Most reits have large amount of fixed rate loans, so they won’t immediately benefit from rate cuts. As their older loans get renewed, they still have some way to go before their overall rates plateau. Those with more floating rate, that were initially negatively affected by rate hike, will be the first to benefit from rate cuts

 

[stanlawj]

Singapore’s office market: A temporary pause or a prelude to a structural decline?​

Expansions and new openings by tech companies have dried up; ample supply likely to keep rents under pressure

The Singapore office market performed well after the Covid-19 pandemic. According to CBRE Research, Core CBD (Grade A) office rents rose by 14.9 per cent over 12 consecutive quarters since Q1 2021.

This has come about as Asia-Pacific markets, including Singapore, saw a faster return to office compared to Europe and US, amid tight supply and new project delays.

However, the positive rent growth has paused since Q2 2024, with prime rents remaining flat for two consecutive quarters.


The latest URA data has also shown that the office rental index (Central Region) registered a 0.5 per cent quarter-on-quarter decline, and median rents of Category 1, a proxy for the best office spaces in the city centre (based on contracts signed), declined by 0.8 per cent quarter on quarter in Q3 2024.

Lack of large demand drivers​

The slowdown can be attributed to the vacancy spike to 7.8 per cent, following the completion of IOI Central Boulevard Towers, which added 1.2 million square feet of office space in the last few months.

The high vacancy has shone a spotlight on the noticeable lack of large demand drivers since late 2022. The expansions and new set-ups from tech firms, which previously occupied large chunks of space in excess of 30,000 square feet, have dried up.

While there have been incremental space requirements from private wealth, family offices, asset managers, as well as professional services firms in 2023 and 2024, these typically involve smaller spaces and have not compensated for the reduction in demand from the tech sector.

Ample immediate supply​

In addition, the rise of flexible working arrangements, coupled with escalating interest rates and real estate costs amid economic uncertainty, have prompted many occupiers to downsize or seek more affordable alternatives.

While shadow space (excess space on an existing lease obligation that a tenant would like to give up) in the market has stabilised, there are some 0.6 million sq ft of secondary spaces or lease expiries that will not be renewed, which are coming up in 2025. News of fresh layoffs, including the most recent round at Dyson, has also raised concerns of more consolidations in the market.

As a result, on a rolling basis, the five-year average annual net demand declined to 0.31 million sq ft over 2019-2023, a stark contrast to the historical 10-year average of 0.72 million sq ft. Is this the prelude to a structural decline of the Singapore office sector?

To read the rest, go to: https://www.businesstimes.com.sg/pr...temporary-pause-or-prelude-structural-decline

 

[stanlawj]

The previous news about office space supply is bearish.
But what about this? Better business coming from 2030 onwards. Construction activity in the mean time expands the money supply through the construction loans. This fresh money supply will travel through the biz sector.

RWS waterfront development set to open by 2030; to feature 88m-tall sculpture, 'mountain' trail​

RWS first announced that it would be upgrading its waterfront in 2019 as part of its "RWS 2.0" expansion. At the time, they said it would cost S$4.5 billion (US$3.3 billion) but the figure was later revised to S$6.8 billion, which would be invested over eight years.

RWS's gross floor area is expected to expand by 50 per cent, with more than 164,000 sqm to be added. The resort said then there were plans to build a Super Nintendo World in Universal Studios Singapore (USS), although no updates were given on this front.

The world's first Super Nintendo World opened in Universal Studios Japan in Osaka in 2021.

The RWS 2.0 expansion includes a soft opening for Minion Land in the USS and a luxury all-suite hotel replacing Hard Rock Hotel Singapore in the first quarter of next year.

The SEA Aquarium will be rebranded as the Singapore Oceanarium - which is three times larger. Its soft opening will take place in the first half of 2025.

https://www.channelnewsasia.com/singapore/sentosa-rws-uss-tourism-attraction-sea-aquarium-4748201

 

[stanlawj]

CFA is going in the wrong direction today!

 

[sky1978]

The previous news about office space supply is bearish.
But what about this? Better business coming from 2030 onwards. Construction activity in the mean time expands the money supply through the construction loans. This fresh money supply will travel through the biz sector.

RWS waterfront development set to open by 2030; to feature 88m-tall sculpture, 'mountain' trail​

RWS first announced that it would be upgrading its waterfront in 2019 as part of its "RWS 2.0" expansion. At the time, they said it would cost S$4.5 billion (US$3.3 billion) but the figure was later revised to S$6.8 billion, which would be invested over eight years.

RWS's gross floor area is expected to expand by 50 per cent, with more than 164,000 sqm to be added. The resort said then there were plans to build a Super Nintendo World in Universal Studios Singapore (USS), although no updates were given on this front.

The world's first Super Nintendo World opened in Universal Studios Japan in Osaka in 2021.

The RWS 2.0 expansion includes a soft opening for Minion Land in the USS and a luxury all-suite hotel replacing Hard Rock Hotel Singapore in the first quarter of next year.

The SEA Aquarium will be rebranded as the Singapore Oceanarium - which is three times larger. Its soft opening will take place in the first half of 2025.

https://www.channelnewsasia.com/singapore/sentosa-rws-uss-tourism-attraction-sea-aquarium-4748201

This will be 6.8b over the next 8 years in construction spending correct?

Singapore's construction spending averaged around 30b over the past few years. The value for this year is expected to be around 35b. This increase in comparison to the size of SG GDP doesn't seem to be a lot, but there are already talks about the few mega projects driving up construction costs.

https://www.statista.com/statistics...opment-contracts-awarded-by-sector-singapore/

https://www1.bca.gov.sg/about-us/ne...or-the-construction-sector-projected-for-2024

https://www.theedgesingapore.com/ne...ould-drive-construction-costs-spore-next-year

You might want to add in MBS 10b expansion too.

https://www.channelnewsasia.com/sin...8-billion-completion-pushed-back-2030-4699586