General S-REITs Discussion Thread

[Milo-Dino]

those still holding ireit, may wanna consider cash out n switch to other counters while the Euro weakens earnings

 

[bhalimking]

yup, they are the same.

again the common faces asked about why rent psf for changi city point is lower and compared to CWP and NP.
one even proposed the possibility of doing AEI for anchor point which don't really make sense considering the small area the place is in.

with all the questions being asked, i think i kinda forget asking about the taxation issue for hakka reit though it owned a portion of this reit, to as whether will they be taxed for their 37.1% holding of this reit.

Thanks for the update.

FCT price is playing catch up with CMT.

 

[spiritGate]

Thanks for the update.

FCT price is playing catch up with CMT.

yea dont know why these two chiong so fast sia, is it a normal pace for these two counters?

 

[simon_84]

FCT price is playing catch up with CMT.

yup, is a bit slower than CMT but planning to sell during XD.

 

[felixleong]

CMT down 3 %, why ah?

 

[Perisher]

CMT down 3 %, why ah?

It's just a general market movement. no reason. Like CD, cmt chiong up fast and furious, so down also abit fierce. Only singpost is acting weird now...

 

[felixleong]

at some acting very weird

so much volatility... blue chips moving 1-3% like so common nowdays

 

[teerance85]

Feels weird for CMT to drop 3% during CD period.

Feels weird too for Singpost to rush up so high.

 

[simon_84]

uob report:

Technically, Capitamall Trust (CMT) has retraced from the recent 52-week high of S$2.26 and the immediate support levels to watch for are, S$2.18 and S$2.12.

In our Regional Morning Notes dated 26 Jan 15, our institutional research downgraded the trust to SELL with an unchanged target price of S$2.14, based on DDM (required rate of return: 6.8%, terminal growth: 1.8%).

The retail environment is expected to remain challenging from the increased supply, rising costs and threats from alternative retail channels.
As we introduce 2017 earnings, risks include rising competition in Jurong East impacting malls in CMT's portfolio, foreign labour curbs affecting tenants and the rising threat from alternative retail channels.

 

[Bedokian]

As we introduce 2017 earnings, risks include rising competition in Jurong East impacting malls in CMT's portfolio, foreign labour curbs affecting tenants and the rising threat from alternative retail channels.

These are common risk features for retail REITs, in which the only main deciding factor would be the traditional "location, location, location".

 

[simon_84]

These are common risk features for retail REITs, in which the only main deciding factor would be the traditional "location, location, location".

i think CMT will do well in the west.

 

[Bedokian]

i think CMT will do well in the west.

That is their "territory", akin to the north side belonging to FCT.

 

[simon_84]

That is their "territory", akin to the north side belonging to FCT.

got 1 joker during FCT agm, request the board to explore the option of having a presence in the west, really *face palm* question.
might as well also request to complete in the south with MCT also.

 

[spiritGate]

got 1 joker during FCT agm, request the board to explore the option of having a presence in the west, really *face palm* question.
might as well also request to complete in the south with MCT also.

I would prefer FCT to go into east/north-east to build solid foundation Since FCT already have strong foundation in north.

Going to west = suicide, going to central = have to fight till survive, south = nothing much

 

[simon_84]

I would prefer FCT to go into east/north-east to build solid foundation Since FCT already have strong foundation in north.

Going to west = suicide, going to central = have to fight till survive, south = nothing much

i don't really need FCT to expand too much, they are not CMT.
the more they expand, they could end up going the same way as CMT with yield compressed because of high price.
the basic principle of every finance manager is to enhance every shareholder value, no point expanding if cannot find yield accretive buildings to buy over.

in north east, there are already some presence of CMT and SPH.

in the south, once PSA get out of the tanjong pagar area (prime estate area for residential), i expect MCT to build up their presence near vivo city.
or they can carry out AEI to transform vivo to an even larger shopping area.

 

[Bedokian]

i don't really need FCT to expand too much, they are not CMT.
the more they expand, they could end up going the same way as CMT with yield compressed because of high price.

in north east, there are already some presence of CMT and SPH.

in the south, once PSA get out of the tanjong pagar area (prime estate area for residential), i expect MCT to build up their presence near vivo city.
or they can carry out AEI to transform vivo to an even larger shopping area.

FCT has Centrepoint in its pipeline to be acquired, which means this would be their first foray into the prestigous Orchard shopping belt area.

At the moment I see 2 "hubs" emerging in Orchard - the Ngee Ann City-Wisma Atria-Paragon hub (owned by Starhill and SPH REIT), and the Orchard Central-313 Somerset-Orchard Gateway-Centrepoint hub (no REIT-owned properties here). These hubs are strategically centred around an MRT station, so Centrepoint would benefit (all along it has been). The only gripe is that Centrepoint need to go for further asset enhancement in order to benefit.

 

[simon_84]

FCT has Centrepoint in its pipeline to be acquired, which means this would be their first foray into the prestigous Orchard shopping belt area.

i believe ah paul has pointed out before this building won't be acquired by FCT.
even the shareholders have stop asking this question since last year.
though this year got 1 new guy asked about it (their typical answer is when the time is right, they will inject).
however, the CEO tend to stress that FCT emphasis will primarily be suburban malls.

same concept as to why capitamall asia won't let CMT acquire ION, cause is their golden goose.
last year during CMT agm, the CEO also pointed out their emphasis is also on suburban malls.

 

[Paul Lee]

FCT has Centrepoint in its pipeline to be acquired, which means this would be their first foray into the prestigous Orchard shopping belt area.

Alamak! I dare to say it wont happen for a long long long time. Ever since FCT was listed in 2006, Centerpoint has always being touted as being part of the acquisition pipeline.

Now after nearly 10 yrs later, they have bought Bedok Point, Yew Tee Point and Changi City Point but not Centerpoint.

Why? Why would Frasers (sponsor and mother company) sell the golden goose? If I were at the AGM, I would tell the Board to wake up their idea and not mislead unitholders if they are not serious in buying Centerpoint. Dun keep putting Centerpoint as a potential acquisition target in all your presentation when Frasers has no intention of selling.

 

[Bedokian]

Thanks for pointing out by simon_84 and Paul. I did not know about the goings and comings of the Centrepoint issue in FCT, but even at the 1Q15 presentation just a few days ago (here, slide #36), they still indicate it as in the pipeline.

Before I knew of these, I was hoping that they rather chose Compass Point than Centrepoint.

 

[Paul Lee]

Thanks for pointing out by simon_84 and Paul. I did not know about the goings and comings of the Centrepoint issue in FCT, but even at the 1Q15 presentation just a few days ago (here, slide #36), they still indicate it as in the pipeline.

Before I knew of these, I was hoping that they rather chose Compass Point than Centrepoint.

That why I say FCT management are not being honest. I now believe that they are dangling Centerpoint to entice potential investors to buy into the REITs. Frankly I think its stupid. FCT has a good track record and dun need to dangle such carrot cos their track record speaks for themselves.

Of cos I cant be pissed at management especially when I see the returns since IPO. Nearly 100% from IPO $1.03. Almost 75c DPU since IPO. How to be angry??

As for CompassPoint, I think its not so straightforward cos I think the mall is is strata-titled. Not sure how much of CompassPoint is owned by FrasersCenterpoint so injection into FCT may not be so straightforward.