General S-REITs Discussion Thread

[marandaz]

Boost for S-reits

Reits are hoping for extensions on the tax incentives they currently enjoy, but which expire on March 31, 2015. And analysts believe that some, if not all, of the expiring incentives would probably be renewed, in line with the government's moves to keep Singapore's Reit market competitive alongside regional counterparts.

Reits: Time to end tax breaks?

 

[sharepoint2014]

bookmarked for later...

 

[felixleong]

Boost for S-reits

Reits are hoping for extensions on the tax incentives they currently enjoy, but which expire on March 31, 2015. And analysts believe that some, if not all, of the expiring incentives would probably be renewed, in line with the government's moves to keep Singapore's Reit market competitive alongside regional counterparts.

Reits: Time to end tax breaks?

die die they must renew
if not foreign reits holder will sell off and run away

i think the odds of renewing for another 5 year is high, 90% probably

but lucky I currently not vested in any reits

 

[barnabaskoh]

die die they must renew
if not foreign reits holder will sell off and run away

i think the odds of renewing for another 5 year is high, 90% probably

but lucky I currently not vested in any reits

so for those not yet invested in reits should wait for the confirmation of renewal or not before going in?

 

[Perisher]

so for those not yet invested in reits should wait for the confirmation of renewal or not before going in?

You decide yourself.

US rate hike, Reits would fall.
SG tax law change, Reits would fall.
SG tax law maintain, Reits would rise.

Those are just some of the considerations.

 

[marandaz]

Cache Logistics Trust to acquire three properties in Australia for A$70m

-> total acquisition cost of A$75.6 mil (S$79.3 mil)
-> All freehold
-> weighted average lease to expiry (WALE) of 9.7 years by lettable area
-> Rental growth via annual rent escalations 3.0% - 3.5%
-> Accretive to annualized yield by 0.13 cents

 

[Paul Lee]

You decide yourself.

US rate hike, Reits would fall.
SG tax law change, Reits would fall.
SG tax law maintain, Reits would rise.

Those are just some of the considerations.

Agree that its a consideration but like many things in life, not everything is so black and white.

The foreign income tax incentives will have a bigger impact on those REITs with a lot of properties overseas. If a REIT is largely sg-centric, then even if there's no extension, they will not be impacted.

As for interest rate hike, its been discussed to the death and I'm amused that 'anal-yst' is still trying to scare ignorant and lazy investors about the possible impact. Yes there will be impact but again you will need to look into the debt profile and debt servicing requirement of individual REITs.

A lot of REITs has already re-financed and locked in their rates for many years to come. Those who has not re-financed may be the vulnerable one. Again not so black and white. Not all REITs will be equally affected.

Of cos, there will be a contagion effect for the entire REIT universe and possibly all will be hit. So its actually excellent buying (or selling) opportunities for REITs unfairly penalised.

 

[Perisher]

Agree that its a consideration but like many things in life, not everything is so black and white.

The foreign income tax incentives will have a bigger impact on those REITs with a lot of properties overseas. If a REIT is largely sg-centric, then even if there's no extension, they will not be impacted.

As for interest rate hike, its been discussed to the death and I'm amused that 'anal-yst' is still trying to scare ignorant and lazy investors about the possible impact. Yes there will be impact but again you will need to look into the debt profile and debt servicing requirement of individual REITs.

A lot of REITs has already re-financed and locked in their rates for many years to come. Those who has not re-financed may be the vulnerable one. Again not so black and white. Not all REITs will be equally affected.

Of cos, there will be a contagion effect for the entire REIT universe and possibly all will be hit. So its actually excellent buying (or selling) opportunities for REITs unfairly penalised.

You got all the ticks in the box. That's why one should likely wait to buy in reits, as most of these news will likely impact all reits prices whether they are fundamentally impacted or not, exposure or not. These big sweeping sell down always provide opportunity to buy in the unfairly sell down counter. It's the same as the oil plunge which affected different counter differently but all sell down big if they are even slightly linked to oil.

 

[felixleong]

in short, there's a cloud of uncertainty in the reits sector
as a value investor, I would still be interested in reits if the valuations are attractive and I could get some margin of safety

the top reit that I'm eyeing on is CMT, its currently at 1.2 times book value

I wouldn't mind trying to get it if it comes down to 1 times book value, as I think for a blue chip company it will be the strongest to withstand the new interest rates environment as compared to smaller reits

also among the different industries, I'm bearish on industrial, neutral on office, hospitality and bullish on retail

just my 2 cents view

 

[felixleong]

Btw even dividend warrior has completely sold off all his reits.

So if die die want to stick to reits i think a few things to play safe would be picking those with low gearing of say 30% or under, a solid debt perfortlio with long maturity and fixed rates, good credit rating say bbb or better.

 

[simon_84]

seems like the amount of fear mongering spread by just 1 person is too obvious.

 

[simon_84]

so for those not yet invested in reits should wait for the confirmation of renewal or not before going in?

go in at a price you're comfortable in and don't over commit your funds purely just for reits.
keep some cash for corrections ahead.

 

[Perisher]

seems like the amount of fear mongering spread by just 1 person is too obvious.

Let me quote you on this, what I said would most likely come to pass.

If and when interest rate hike, reits would sell down, whether the general market would follow, not sure.
If sg gov decide to change the tax on reits, sell down too.
This is not fear mongering, baseless stuff, it's just how the market usually respond to these kind of news. US side already can see reits selling down and banks going up on that job growth report recently...

Reits slide news here
U.S. REITs Slide Most Since September After Jobs Report - Bloomberg Business
Banks rise news here
Bank Stocks Surge After Jobs Report - Bloomberg Business

 

[felixleong]

seems like the amount of fear mongering spread by just 1 person is too obvious.

bo bian, when the dividend master sell, the followers also scared and sell out too

 

[simon_84]

Let me quote you on this, what I said would most likely come to pass.

If and when interest rate hike, reits would sell down, whether the general market would follow, not sure.
If sg gov decide to change the tax on reits, sell down too.
This is not fear mongering, baseless stuff, it's just how the market usually respond to these kind of news. US side already can see reits selling down and banks going up on that job growth report recently...

i have reduced my exposure on reits since last month.
on the lookout for a good price to sell FCT.
first reits seems like on some growth momentum, so will keep it for the moment.

appreciate your warning but as i know both of us still have vested interest, i'm talking more about the non vested personal instead.

 

[simon_84]

bo bian, when the dividend master sell, the followers also scared and sell out too

DW sell, is his business.

he no longer has his blog already, you still cannot let go ?
now want to pinpoint him again ?

 

[Perisher]

Haha, don't worry, there will be re-bounce after the initial sell down. Can pick up more of your favourites. Reits would rise with economy. Especially the better ones.

 

[teerance85]

But i thought DW sold some of his holdings to raise liquidity for his tuition business, but not about the Reits issue?

 

[simon_84]

But i thought DW sold some of his holdings to raise liquidity for his tuition business, but not about the Reits issue?

yup, DW need funds for his business.

is just that somebody else is dishing all the pepper and salt then letting DW absorb the blame.
really have to question his so called amount of goodwill sharing.

 

[barnabaskoh]

go in at a price you're comfortable in and don't over commit your funds purely just for reits.
keep some cash for corrections ahead.

thanks for the advice, i was thinking of buying 1 lot(100 share)of Es3 ,A35 and 1 reitz per month.

just started this month, i bought 1 lot of ES3 and A35 already. This are using my spare cash , just thought of slowling growing my savings in the long run.I was thinking adding reitz to diversify by abit..