General S-REITs Discussion Thread

[d5dude]

Agreed
behave more like stocks
so if rate cut
REITs will go up
not because of lower cost of financing

But rates are already down big in SG. How low must it go in order for Sreits to rise? Zero?

 

[thretiredDad]

But rates are already down big in SG. How low must it go in order for Sreits to rise? Zero?

The lower the US rate = the better the sentiment
let’s see

 

[d5dude]

The lower the US rate = the better the sentiment
let’s see

But this is not Sreit specific... ceteris paribus *nearly* all stocks will do better when the discount rate is lower since it increases the value of future cash flows.

 

[ask_yip]

SREITs want to fly liao?

or another fake fire?

 

[DevilPlate]

But this is not Sreit specific... ceteris paribus *nearly* all stocks will do better when the discount rate is lower since it increases the value of future cash flows.

Consolation Sreits pays u during good or bad times

 

[DevilPlate]

SREITs want to fly liao?

or another fake fire?

Gradual increase like now shd be sustainable

 

[weng0202]

Gradual increase like now shd be sustainable

Hope it holds, but recent rise may be due to news that fed might cut rates soon.

 

[highsulphur]

Hope it holds, but recent rise may be due to news that fed might cut rates soon.

I didn't add but I'm hopeful it will rally next year

 

[TehSi99]

Reits seems to be waking up.

 

[thretiredDad]

I didn't add but I'm hopeful it will rally next year

Last few market days
Sold half of my REITs holding
regretted
fomo led me to buying lion sreits and cfa now

 

[highsulphur]

Reits seems to be waking up.

I think it's a combo of stronger sgd and lower sg interest rates

 

[DevilPlate]

Even some sampan reits are climbing lol

 

[d5dude]

Consolation Sreits pays u during good or bad times

But they can cut dividends if and when the business deteriorates and DPU falls, which makes them similar to "defensive stocks" with a dividend policy.

Sreits are not fixed income and they should not replace bonds in one's portfolio, they function just like any other stock i.e long term returns are highly correlated to business performance.

 

[TehSi99]

But they can cut dividends if and when the business deteriorates and DPU falls, which makes them similar to "defensive stocks" with a dividend policy.

Sreits are not fixed income and they should not replace bonds in one's portfolio, they function just like any other stock i.e long term returns are highly correlated to business performance.

Reits is still a equity regardless how defensive or what.
Bond is bond. Not James Bond though.

 

[TehSi99]

Even some sampan reits are climbing lol

That could mean real rally for reits and inflow of funds.

Good opportunities to load up if not invested. But choose good ones.
Good opportunities to offload if long term bag holders.

 

[AST781]

Even some sampan reits are climbing lol

All anticipating July rate cut.

 

[TehSi99]

All anticipating July rate cut.

The impact of tariffs not fully felt yet.

 

[thretiredDad]

That could mean real rally for reits and inflow of funds.

Good opportunities to load up if not invested. But choose good ones.
Good opportunities to offload if long term bag holders.

from uobkayh this morning

• Every dog has its day. Singapore is a safe haven as it benefits from having the lowest reciprocal tariff of 10%. The flight to quality has led to three-month compounded SORA easing by a massive 98bp to 2.09% in 1H25. Surprisingly, the steep drop in 3M SORA has not triggered any positive unit price movements for S-REITs. We argue that a broader recovery in liquidity triggered by potential Fed rate cuts in 4Q25 could eventually lift unit prices for S-RElTs.
• Lowering assumptions for risk-free rate. The 10-year Singapore government bond yield eased 60bp to 2.26% in 1H25. We have raised our target prices for S-REITs by an average of 10.5% after adjusting risk-free rate lower by 50bp from 3.0% to 2.5%.

Noted : s-REITs target price raised
an average of 10.5%

 

[DevilPlate]

from uobkayh this morning

• Every dog has its day. Singapore is a safe haven as it benefits from having the lowest reciprocal tariff of 10%. The flight to quality has led to three-month compounded SORA easing by a massive 98bp to 2.09% in 1H25. Surprisingly, the steep drop in 3M SORA has not triggered any positive unit price movements for S-REITs. We argue that a broader recovery in liquidity triggered by potential Fed rate cuts in 4Q25 could eventually lift unit prices for S-RElTs.
• Lowering assumptions for risk-free rate. The 10-year Singapore government bond yield eased 60bp to 2.26% in 1H25. We have raised our target prices for S-REITs by an average of 10.5% after adjusting risk-free rate lower by 50bp from 3.0% to 2.5%.

Noted : s-REITs target price raised
an average of 10.5%

Super bullish target that can never hit lol

Maybe their old target got chance
*Suntec reit sibei cui

 

[TehSi99]

from uobkayh this morning

• Every dog has its day. Singapore is a safe haven as it benefits from having the lowest reciprocal tariff of 10%. The flight to quality has led to three-month compounded SORA easing by a massive 98bp to 2.09% in 1H25. Surprisingly, the steep drop in 3M SORA has not triggered any positive unit price movements for S-REITs. We argue that a broader recovery in liquidity triggered by potential Fed rate cuts in 4Q25 could eventually lift unit prices for S-RElTs.
• Lowering assumptions for risk-free rate. The 10-year Singapore government bond yield eased 60bp to 2.26% in 1H25. We have raised our target prices for S-REITs by an average of 10.5% after adjusting risk-free rate lower by 50bp from 3.0% to 2.5%.

Noted : s-REITs target price raised
an average of 10.5%

The new target is like upside of 20-40%.

If that happens, then time to sell my long time bag holding reits.