General S-REITs Discussion Thread

soneat

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cambridge reit dpu fell 11%

industrial reits seems very bad now?
Lack of capital (divestment) distribution. Else I think the distribution QoQ is flat.

All these smaller reits (e.g. cache, sabana, cambridge) typically suffers as their master leases (esp those triple net types) get converted to multi-tenanted. For larger industrial reits like A reit, they have a lot of properties so if a handful gets converted to multi tenanted, the impact is hardly felt.

=)
 

Genosis

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CMT’s 1H 2016 distributable income up 3.7% year-on-year

Power of blue chip reit~

The 3D blueprint for the new Funan looks good......Net Lettable Area will double after development is completed!!!:s12: A mixture of retail, office and serviced residence...
 

micromousez

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CMT’s 1H 2016 distributable income up 3.7% year-on-year

Power of blue chip reit~

1.7% positive rental reversion caught my eye...
This seem to be abit on the low side + w/o Funan revenue now, CMT look pricey at this moment..
 

Genosis

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1.7% positive rental reversion caught my eye...
This seem to be abit on the low side + w/o Funan revenue now, CMT look pricey at this moment..

Ya.......only worth a look below $2

The Funan redevelopment is short-term pain but long-term gain...:D
 

bjornng

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hi all, i've been reading about reits and im looking to add my first in my portfolio, but to be honest, sometimes i still feel damn lost as to what should i look out for, even after reading.. but for starters, im looking at soilbuildbiz as a potential first.

any advice and suggestions to share for a newbie? :o
 

Wood41

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Time is not right to start investing when you see
many of us here are smiling with our earlier buys &
some believe the good time is here and STI has a long way to go . :o
 

Aventad0r

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hi all, i've been reading about reits and im looking to add my first in my portfolio, but to be honest, sometimes i still feel damn lost as to what should i look out for, even after reading.. but for starters, im looking at soilbuildbiz as a potential first.

any advice and suggestions to share for a newbie? :o

FCT, cmt, mct, Suntec, parkway, ascendas
 

Dyhalt

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any advice and suggestions to share for a newbie? :o

There are 5 major types of REITs :
Healthcare/Residential, Retail, Business Office, Hospitality, Industrial ranked in ascending risk/reward ratio. Latter is more cyclical and fluctuate according to economic situation. REITs could be a mix of 1, 2 or even 3 of above components.

Locations could be local or foreign, local sREITs eliminates your currency risk since its valued in SGD, foreign you have to consider FX fluctuations as well.

REITs investors usually look at yield/risk, debt leverage, price/NAV, growth potential, term of lease and most importantly the management team. REITs that frequently use rights issue for funding is usually a nono. REITs without good tenants or locations is also nono. REITs that's highly leveraged (like mortage REITs) is also nono.
 

Dyhalt

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There is another question often asked by many new investors.

Why Industrial REITs usually pay higher yield? Why usually old birds recommend none of these but instead recommend Mapletree, Frasers or Capital related REITs?

1. Industrial REITs usually has a yield of over 8%, but that may not justify the risk you are taking. The biggest risk you'll have is most industrial compounds only have a lease term of 30 years compare to the 99 years which is typical for most other commercial buildings. This means Industrial REITs will have higher replacement cost down the road. Finding the right tenant can also be troublesome due to storage space, location, price limitations. There are well managed Industrial REITs around, just that you'll have to understand their operations.

2. Why big name REITs, simply put they have good long term track records and have proven to add investor values for the past few years. They also have better management governance and transparency overall.

Cheers
 

IAmZTX

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Good sharing from Dyhalt. However, not all right issues are consider bad, must find the main reason why the company issue a right issue.

Correct me if I'm wrong.
 

Dyhalt

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Good sharing from Dyhalt. However, not all right issues are consider bad, must find the main reason why the company issue a right issue.

Correct me if I'm wrong.

Rights issues is good if management finds a good opportunity that adds investor value. A good example is to acquire a property or AEI over existing property that will boost yield after rights despite the dilution with the new shares, like the FIRST REITs rights issue in 2010.

However since such opportunity rarely comes by, the more selfish reason for rights issue is just to inflate REITs portfolio under management by buying more assets. This only benefit the management since they get transaction bonus for buying/selling, and charge management fee as a % of total asset under management. That is not a good rights issue and will cause overall weaker REITs price due to poor reputation.
 
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