Which reits? Lendlease?
General S-REITs Discussion Thread
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Which reits? Lendlease?
Sarutobix
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Actually the last 15mins was recovering a few cents up. But after closing at 5pm, the pre-closing suddenly got a huge dump. Not sure if this is the work of institutions and there is something we don't know
Anyway, i got my bid at a much lower price so by right I should be happy with it. Only worry is what constitute to the dump. Maybe Monday gna crash more jialat.
Actually the last 15mins was recovering a few cents up. But after closing at 5pm, the pre-closing suddenly got a huge dump. Not sure if this is the work of institutions and there is something we don't know
Anyway, i got my bid at a much lower price so by right I should be happy with it. Only worry is what constitute to the dump. Maybe Monday gna crash more jialat.
Pre closing sell off.
I saw my SATS and MCT drop, the rest are fine.
Sarutobix
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Oh well. Time to enjoy this weekend. Fight another war next week
After going through one round of weekend on phase 2, can review the reactions and impact.
Shion
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RHB forecasts 5-10% decline in office rental fees, maintains 'overweight' call for office sector on
RHB forecasts 5-10% decline in office rental fees, maintains 'overweight' call for office sector on prolonged low-interest rate environment
https://www.theedgesingapore.com/ca...-rental-fees-maintains-overweight-call-office
SINGAPORE (June 19): RHB analyst Lock Mun Yee has maintained her “overweight” call on the office property sector.
In a report dated June 18, Lock says she has maintained the call on valuation grounds, and in view of the prolonged low-interest-rate environment.
Lock has also identified CapitaLand Commercial Trust (CCT) and Keppel REIT (KREIT) as her top picks, with “add” calls, and target prices of $1.98, and $1.20, respectively.
“For office landlords, we prefer the pure plays among REITs. Our strategy is to prefer landlords with minimal lease expiries in 2020F and high portfolio occupancies,” she writes.
“KREIT and CCT have low expiries of 6% and 10% of their Singapore portfolio net lettable asset (NLA) as at end-1Q20. We expect them to enjoy flat to slight positive reversion for the remainder of this year given the low average expiring rents,” she adds.
KREIT offers an FY20F yield of 4.9% while CCT offers an FY20F yield of 4.2%.
While office viewing activities are expected to resume during phase two of the lifting of the circuit breaker measures, Lock expects leasing momentum to slow down due to site viewings by appointment only, and a weaker macro backdrop.
Office tenants, Lock says, would also likely to remain cautious on expansion plans, as they assess the impact of Covid-19 on their businesses.
As a result, Lock has reduced her forecast for overall office rent to decline by 5-10% in 2020F, compared to her previous forecast of a 0-5% decrease.
“Given the slower leasing momentum, we anticipate lower annual net absorption rate of 500k-700k sq ft for 2020F, below the estimate of 1.7m sq ft net demand in 2019,” she says.
“With around 1.9m sq ft of new completions this year, slower leasing demand would translate into higher vacancy level of c.11.3% by end-2020F, in our estimate,” Lock adds.
Lock also believes that existing buildings should fare better than new buildings, as tenants are likely to renew their existing leases instead of renting a new premise in the near-term.
“The upside catalyst to our view is that delays in construction activities may push back completions in the near term, which may help mitigate some of the projected rental declines,” she says.
On the new normal in a post-Covid-19 environment, Lock observes that while there is an emerging trend to de-densify office spaces, she does not expect these changes to take place overnight.
Citing a report by property consultant Cushman and Wakefield released in May, companies could see their footprint increase 15-20% due to social distancing measures, if companies don’t make any changes in enabling flexible working arrangements.
“[A] faster-than-expected macro recovery could re-rate the sector while downside risk is prolonged slowdown in economic activity which would dampen the demand for office space,” she concludes.
Units in CapitaLand Commercial Trust closed 8 cents lower, or 4.4% down, at $1.73, while units in Keppel REIT closed 2 cents lower, or 1.8% down, at $1.11, on Friday.
RHB forecasts 5-10% decline in office rental fees, maintains 'overweight' call for office sector on prolonged low-interest rate environment
https://www.theedgesingapore.com/ca...-rental-fees-maintains-overweight-call-office
SINGAPORE (June 19): RHB analyst Lock Mun Yee has maintained her “overweight” call on the office property sector.
In a report dated June 18, Lock says she has maintained the call on valuation grounds, and in view of the prolonged low-interest-rate environment.
Lock has also identified CapitaLand Commercial Trust (CCT) and Keppel REIT (KREIT) as her top picks, with “add” calls, and target prices of $1.98, and $1.20, respectively.
“For office landlords, we prefer the pure plays among REITs. Our strategy is to prefer landlords with minimal lease expiries in 2020F and high portfolio occupancies,” she writes.
“KREIT and CCT have low expiries of 6% and 10% of their Singapore portfolio net lettable asset (NLA) as at end-1Q20. We expect them to enjoy flat to slight positive reversion for the remainder of this year given the low average expiring rents,” she adds.
KREIT offers an FY20F yield of 4.9% while CCT offers an FY20F yield of 4.2%.
While office viewing activities are expected to resume during phase two of the lifting of the circuit breaker measures, Lock expects leasing momentum to slow down due to site viewings by appointment only, and a weaker macro backdrop.
Office tenants, Lock says, would also likely to remain cautious on expansion plans, as they assess the impact of Covid-19 on their businesses.
As a result, Lock has reduced her forecast for overall office rent to decline by 5-10% in 2020F, compared to her previous forecast of a 0-5% decrease.
“Given the slower leasing momentum, we anticipate lower annual net absorption rate of 500k-700k sq ft for 2020F, below the estimate of 1.7m sq ft net demand in 2019,” she says.
“With around 1.9m sq ft of new completions this year, slower leasing demand would translate into higher vacancy level of c.11.3% by end-2020F, in our estimate,” Lock adds.
Lock also believes that existing buildings should fare better than new buildings, as tenants are likely to renew their existing leases instead of renting a new premise in the near-term.
“The upside catalyst to our view is that delays in construction activities may push back completions in the near term, which may help mitigate some of the projected rental declines,” she says.
On the new normal in a post-Covid-19 environment, Lock observes that while there is an emerging trend to de-densify office spaces, she does not expect these changes to take place overnight.
Citing a report by property consultant Cushman and Wakefield released in May, companies could see their footprint increase 15-20% due to social distancing measures, if companies don’t make any changes in enabling flexible working arrangements.
“[A] faster-than-expected macro recovery could re-rate the sector while downside risk is prolonged slowdown in economic activity which would dampen the demand for office space,” she concludes.
Units in CapitaLand Commercial Trust closed 8 cents lower, or 4.4% down, at $1.73, while units in Keppel REIT closed 2 cents lower, or 1.8% down, at $1.11, on Friday.
NewInvestor
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It is odd that Keppel DC REIT, my largest REIT, is surging and is almost at its ATH of $2.59. I m glad I added on to my position at $2.4x but didn't expect it to surge to $2.5x this fast. Its forward DPU yield is only 3.3%. What is driving the price?
Am glad to see MINT and MLT recently surging as well.
Am glad to see MINT and MLT recently surging as well.
wutawa
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Dc reits and tech seem to be hot fav these days. Being next in sti queue also looks promising
NewInvestor
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NewInvestor
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I am a fool to dump 4000 shares of mapletree ind tr @ $2.65
Look long term. MINT's dpu yield is still 5.x% while US interest has been falling....
I am a fool to dump 4000 shares of mapletree ind tr @ $2.65
I'm also a fool to dump 7000 shares of suntec at 1.45, cos philip analysis say it's going down. I check and check the chart, doesn't look like going down, but I sell on panic
...and suntec continue to go up till 1.6x (a lesson learn
)
Shion
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In terms of preference, how would you rank these 3 REITs ?
NewInvestor
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NewInvestor
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wutawa
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Mit can mean Manufacturing Integration Technology Ltd (M11.SI).
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