General S-REITs Discussion Thread

Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,752
Reaction score
122,138
S-REITs picking up steam again by diversifying income streams: OCBC

S-REITs picking up steam again by diversifying income streams: OCBC

https://www.theedgesingapore.com/ca...-steam-again-diversifying-income-streams-ocbc

Despite few acquisitions by S-REITs this year owing to the Covid-19 pandemic, some players here are diversifying their income streams, a sign of gradual pickup in activity, say OCBC analysts in an Oct 15 note. OCBC Investment Research is maintaining its ‘overweight’ stance on the S-REITs sector.

“We continue to recommend investors to adopt a balanced approach towards investing in the sector. This entails sticking with selective winners exposed to the data centre, logistics and business parks sub-sectors and REITs which have positioned themselves defensively in anticipation of a weaker outlook, but complement these with REITs in beaten down sub-sectors with deep value and supported by strong sponsors,” note OCBC.

Given the ongoing widespread impact of the Covid-19 pandemic, OCBC states it is not surprising that the pace of acquisitions by S-REITs has been slow this year, given the difficulties in carrying out physical due diligence.

“However, we note that there has some pick-up in activities, with Mapletree North Asia Commercial Trust (MNACT) and CapitaLand Retail China Trust (CRCT) recently announcing an expansion of their investment mandates.”

MNACT announced its maiden penetration into the South Korean commercial market with a proposed acquisition of a 50.0% stake in a freehold 20-storey Grade A office building located in the Gangnam Business District. This is expected to be DPU accretive and OCBC believes there is room for further upside if MNACT is able to ramp up the occupancy at the property.

CRCT’s expanded investment strategy now includes office and industrial (including business parks, logistics facilities, data centres and integrated developments) real estate in China, Hong Kong and Macau besides just retail.

“We expect CRCT to tap on its sponsor CapitaLand’s pipeline, which includes 25 retail, 27 commercial and 10 business park, logistics and industrial assets in China,” notes OCBC.

Suntec REIT became the latest S-REIT to tap into a new market. On 8 Oct, it announced a proposed acquisition of a 50% interest in two Grade A office buildings with ancillary retail (collectively known as Nova Properties) located in the heart of Victoria, West End, London, UK for an agreed value of GBP430.6 million (about $766.5 million). This marks Suntec REIT’s maiden entry into the London and UK commercial market. Equity Research 15 Oct.

Government support

Singapore’s Deputy Prime Minister Heng Swee Keat highlighted in early October that the Monetary Authority of Singapore (MAS) estimates the fiscal stimulus rolled out will prevent Singapore’s economy from contracting by a further 5.6% in 2020 and 4.8% in 2021, while the rise in resident unemployment rate will be offset by some 1.7 percentage points this year.

The Temporary Bridging Loan Programme (TBLP) will be extended for six months till Sep 2021, albeit at reduced levels, while the MAS Singapore Dollar Facility for Enterprise Singapore Loans will also be extended till Sep 2021, highlights OCBC.

SMEs in more affected sectors such as tourism, hospitality, conventions and exhibitions and qualifying retail outlets will be given the option to defer 80% of principal payments on their secured loans granted by banks or finance companies, as well as loans granted under Enterprise Singapore’s Enhanced Working Capital Loan Scheme and TBLP till Jun 30, 2021.

“We believe this is a positive for industrial and retail REITs, which are likely to see a bigger proportion of SME tenants in their portfolios,” note OCBC.

“Following our upgrade of Keppel DC REIT (KDCREIT SP) with a fair value (FV) of $3.32] to a ‘buy’, we add the stock to our preferred picks list,” note OCBC.

Its other top ‘buy’ picks are: Ascendas REIT (AREIT SP) [BUY; FV: $3.92], Frasers Logistics & Commercial Trust (FLT SP) [BUY; FV: $1.59], Manulife US REIT (MUST SP) [BUY; FV: US$0.84], Mapletree North Asia Commercial Trust (MAGIC SP) [BUY; FV: $1.09], CapitaLand Mall Trust (CT SP) [BUY; FV: $2.39], and ESR-REIT (EREIT SP) [BUY; FV: $0.45].
 
ashethen

ashethen

Arch-Supremacy Member
Joined
Jul 24, 2005
Messages
19,543
Reaction score
10,520
My IREITS rights units are still available/free in my CDP despite subscribing it via ATM already. means what ar?

did i subscribe to excess rights instead? or is it normal to have the rights still show in CDP?
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,752
Reaction score
122,138
Singapore office rents fall 4.5% in Q3: URA

Singapore office rents fall 4.5% in Q3: URA

https://www.businesstimes.com.sg/real-estate/singapore-office-rents-fall-45-in-q3-ura

RENTALS of office space in the central region of Singapore fell 4.5 per cent quarter on quarter in the third quarter of 2020 after remaining flat in the previous quarter.

Figures released by the Urban Redevelopment Authority (URA) on Friday also showed that prices of office space in the central region went up 0.2 per cent in Q3 after declining 4.3 per cent in the previous quarter.

Islandwide, as at the end of the third quarter of 2020, there was a total supply of about 767,000 square metres (sq m) gross floor area (GFA) of office space in the pipeline, compared with 668,000 sq m GFA at the end of the previous quarter.

The amount of occupied office space decreased by 19,000 sq m of net lettable area (NLA) in Q3, versus a bigger drop of 55,000 sq m in Q2. The stock of office space declined by 33,000 sq m NLA in Q3, compared with an increase of 43,000 sq m in the previous quarter. As a result, the islandwide vacancy rate of office space edged down to 12 per cent at the end of Q3, from 12.1 per cent at the end of Q2.
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,752
Reaction score
122,138
Singapore retail rents down 4.5% in Q3, vacancy flat at 9.6%: URA

Singapore retail rents down 4.5% in Q3, vacancy flat at 9.6%: URA

https://www.businesstimes.com.sg/re...il-rents-down-45-in-q3-vacancy-flat-at-96-ura

RENTALS of retail space in Singapore's central region dropped 4.5 per cent quarter on quarter in the third quarter of 2020, after declining 3.5 per cent in the previous quarter.

However, the latest data released by the Urban Redevelopment Authority (URA) on Friday also showed that prices of retail space in the central region rose by 2.2 per cent in Q3 2020, after chalking up a 1.5 per cent decrease in the previous quarter.

Islandwide, as at the end of the third quarter, there was a total supply of 428,000 square metres (sq m) gross floor area (GFA) of retail space from projects in the pipeline, up from 364,000 sq m GFA in the previous quarter.

The amount of occupied retail space contracted by 50,000 sq m net lettable area (NLA) in Q3, less than the 93,000 sq m drop in the previous quarter.

Meanwhile, the stock of retail space fell by 53,000 sq m NLA in Q3, compared with the increase of 4,000 sq m in Q2.

As a result, the islandwide vacancy rate was flat at 9.6 per cent at the end of Q3.

Christine Li, Cushman & Wakefield’s head of research (Singapore and South-east Asia), reckons that the retail rental market will continue to face a tough operating environment, since social distancing and crowd-management measures translate to lower capacity and reduced footfalls. She said: “The gloomy economic outlook will impact discretionary spending by consumers, resulting in weaker retailers downsizing or exiting the market.”

Ongoing border closures also mean that retailers - in particular those on Singapore’s iconic shopping belt Orchard Road - continue to lose out on the tourist dollar.

Leonard Tay, head of research at Knight Frank Singapore, pointed out that suburban malls are expected to recover faster than those on Orchard Road, given that employees are still working from home. “The rental gap between suburban malls and those in Orchard continues to narrow,” he said.

Mr Tay expects overall retail rents will fall 10-15 per cent for this year, while the decline for rents in the suburbs could be capped at 7.5 per cent. He believes the bottom for retail rents could come by year-end or early 2021 as shopper activity picks up.
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,752
Reaction score
122,138
Singapore Reits' exposure to Robinsons owner in spotlight as fashion retailers struggle

Singapore Reits' exposure to Robinsons owner in spotlight as fashion retailers struggle

https://www.straitstimes.com/busine...re-to-robinsons-owner-in-spotlight-as-fashion

SINGAPORE (THE BUSINESS TIMES) - The fortunes of retail-focused Singapore-listed real estate investment trusts (S-Reits) are "closely tied" with that of beleaguered Robinsons Singapore's owner, DBS Group Research said in a note on Monday.

More brands under Dubai-based conglomerate Al-Futtaim, which owns the department-store operator that's now in liquidation, may also follow suit with closures, the research team noted.

The Al-Futtaim group's brands in the city-state include household names such as Marks & Spencer, Zara and Mango.

Across its 23 brands in Singapore, Al-Futtaim has 111 retail outlets, and about half (56) of these stores are located in S-Reits' malls, DBS analysts Geraldine Wong, Derek Tan and Rachel Tan said in a note on Monday.

The exit of Robinsons may not be a one-off occurrence among Al-Futtaim's portfolio of brands, given the ongoing pressures due to capacity and travel limits, the analysts added.

Retail S-Reits with the largest exposure to the group by store count are CapitaLand Mall Trust (CMT) with 15 outlets, and Frasers Centrepoint Trust (FCT) with 11, according to DBS.

CapitaLand also rents to nine Al-Futtaim brands in total, at its Jewel Changi Airport and Ion Orchard.

Likewise, owners of malls in the Orchard shopping belt - such as Starhill Global Reit with nine stores, Lendlease Global Commercial Reit with seven and Mapletree Commercial Trust's (MCT) VivoCity with eight - have close landlord-retailer relationships with the group, said DBS.

This comes as fashion retailers remain in consolidation mode. The shift to work-from-home practices amid the coronavirus pandemic has led to plunges in portfolio retail sales in fashion.

DBS thus believes most retail brands may look to rationalise their footprint in 2021, and will likely carefully review any shop closures on a store-by-store and brand-by-brand basis to maximise profitability.

"Over time, we believe that the dominant malls across Singapore will continue to attract tenants to maintain their occupancies in the longer term," the research team wrote.

It favours CMT, FCT and Lendlease Reit, which hold "dominant" malls with characteristics that allow them to attract tenants, keep occupancies higher than the rest of the industry, and thus navigate well past the evolving retail landscape.

Robinsons last Friday confirmed it is shuttering for good after more than a century in the business, weighed down by losses in recent years. Some 175 employees will be affected by the closure.

"While the timing came as a surprise to many, we note that department-store formats have been struggling for years, and the inability to establish an omni-channel presence has resulted in department stores rationalising their footprint over time," DBS wrote.

Putting further pressure on their revenues is the Covid-19 pandemic, which has led to restrictions on department stores from holding "atrium sales".

Following Robinsons' collapse, the spotlight is now also on S-Reits' department-store exposure, which ranges between 7 per cent and 21 per cent of gross revenues for Singapore.

Robinsons' department stores contributed about 7 per cent of revenues for CMT, although the Reit's merger with CapitaLand Commercial Trust is estimated to bring this exposure down to less than 2 per cent, DBS said.

Other department-store operators in the Republic include CK Tang Limited's Tangs, which is a tenant of MCT, and mainboard-listed Metro Holdings, which is a tenant of FCT and SPH Reit. Isetan Singapore has no exposure among S-Reits, although it is itself listed on the Singapore bourse.

Department stores usually stand as anchor tenants within malls, given the large percentage of net lettable area they lease. The exit of such anchor tenants may thus result in a "black hole" in shopping centres, DBS noted.

"Landlords may have to get creative with the extra plot of space with the option to either find another anchor tenant to take up the entire space, or divide the retail plot into smaller ones with rental upside potential and consider the overall positioning of the asset going forward," the analysts said.
 
Shion

Shion

Senior Mentor
Joined
Oct 24, 2008
Messages
375,752
Reaction score
122,138
Singapore Reits going global again after US$340 billion blow

Singapore Reits going global again after US$340 billion blow

https://www.straitstimes.com/busine...s-going-global-again-after-us340-billion-blow

SINGAPORE (BLOOMBERG) - Singapore has established itself as a hub for real estate investment trusts (Reits) over the past two decades. Now, following the initial blow from the Covid-19 outbreak, its Reits are slowly coming back to the market with a mission: resume their global expansion.

Mr Gordon Tang and his wife Celine, who have one of the biggest Reit stakes in Singapore, are among those leading the charge. Suntec Real Estate Investment Trust, of which they own about one-tenth, completed the acquisition of a 50 per cent holding in a London property last month, finalising a £430.6 million (S$758 million) deal that had been put on hold with the pandemic.

Lippo Malls Indonesia Retail Trust and IReit Global, in which Chinese tycoon Tong Jinquan owns stakes of more than 4.8 per cent, are raising money to fund acquisitions in Indonesia and Spain.

Keppel Reit and Ascendas Reit both bought office properties in Australia in September.

Like many other industries, Reits have been hit hard during the pandemic. More than US$340 billion (S$465 billion) of value has been wiped out this year from an index tracking them globally as employees emptied out offices in major cities and shoppers turned to e-commerce.

For retail and office properties in financial centres from New York to London and Paris, the future remains grim as companies order employees to stay home and restrictions on movement are reintroduced to prevent a winter surge in cases.

Only 15 per cent of office workers in New York are projected to return by the end of 2020.

Keep Improving

But even with Covid-19 resurging in most of Europe and the US, some Reits are already betting that prime properties around the world will eventually rebound and are looking for distressed opportunities.

For trusts in Singapore, which houses the most Reits in Asia excluding Japan, transactions are slowly picking up, boosted in part by lower financing costs. Most of the $3 billion in deals announced since January happened in the third quarter, DBS Group Holdings Ltd. said in a note on Sept 29.

It added that the market should keep improving through the rest of the year and start of 2021, and analyst Derek Tan expects more acquisitions as the coronavirus crisis dissipates over time.

"Pandemic-related distress sales mean some good opportunities for Asian money accessing the overseas market," said Patrick Wong, a senior analyst at Bloomberg Intelligence. "More transactions are expected to come in."

Mapletree Logistics Trust is among those that have recently restarted their overseas push. It's spending $1.09 billion for real estate in China, Malaysia and Vietnam. Frasers Logistics & Commercial Trust, controlled by Thailand's richest person, Charoen Sirivadhanabhakdi, said in August it will acquire properties in Australia and the UK for about $90 million. He's looking for purchases even as his fortune has dropped more than US$9 billion this year to US$10.4 billion, according to the Bloomberg Billionaires Index.

Millions lost

The Tangs' wealth has also suffered, with the the combined value of their holdings in three Reits currently traded down US$234 million for 2020 to US$519 million. That's even despite a US$40 million rebound since the end of March, according to data compiled by Bloomberg.

In addition to the stake in Suntec Reit, the Tangs control SingHaiyi Group, a developer that has expanded to the US and Australia, and have holdings in OUE Commercial Reit, which owns properties across Singapore and Shanghai, and Cromwell European Reit. Eagle Hospitality Trust, another of their investments, has been suspended since March as its manager defaulted on a US$341 million loan.

Frasers Logistics declined to comment for this story. "Notwithstanding Covid-19, we believe that London will continue to be a key global market where good quality assets are well sought-after," said Chong Kee Hiong, chief executive officer of ARA Trust Management (Suntec), the manager of Suntec Reit, when referring to the recent purchase of London's Nova development.

"Yield accretive, well-located, high-quality assets in key cities were our acquisition criteria. The Nova Properties satisfied these requirements fully. We are confident that these assets are well placed to enhance the income stability of our Reit."

Since the first Singapore listing of a trust in 2002, the market has grown exponentially. The city-state has 44 Reits and property trusts with a combined market value of $101 billion, according to a Singapore Exchange report in October.

Last year, almost 45 per cent of the world's Reit initial public offerings debuted there, surpassing places such as the US, Australia and Japan, the bourse said.

The city-state's tax incentives, regulatory support and increasing appetite from investors due to their high dividend yield - 6.8 per cent as per the Singapore Exchange report - have made it a powerhouse for Reits, Bloomberg Intelligence's Wong said.

"Singapore has attracted a number of Reits with global assets over the past few years," he said. "This creates a critical mass to further attract more similar Reits to get listed in Singapore instead of other Asian markets like Hong Kong and Japan."

Due to the scarcity of land in the island, the trusts have long turned to overseas for growth. More than 80 per cent of Singapore's Reits and property trusts have invested in assets abroad, the exchange's report showed. Australia is a key market, with the number of transactions to the country climbing 72 per cent in the first half of the year even as their amounts remained low, according to real estate consulting firm Knight Frank LLP.

That said, it's not just about expanding abroad. The domestic market is also looking promising as Singapore Reits are poised to benefit from Chinese companies setting up their base in the island. ByteDance, the owner of video app TikTok, is moving to One Raffles Quay, owned by Suntec Reit, while Alibaba Group Holding Ltd acquired a 50 per cent stake in AXA Tower in May and will be an anchor tenant of the building located in the city's financial district.

"The interest in the acquisition, as well as the occupation of commercial properties by technology firms, is anticipated to increase in the year ahead," Knight Frank noted in its third-quarter research report.
 
5408854088

5408854088

High Supremacy Member
Joined
Apr 3, 2007
Messages
32,039
Reaction score
29
exposures.JPG


https://www.businesstimes.com.sg/co...binsons-owner-in-spotlight-as-more-brands-may
 
5408854088

5408854088

High Supremacy Member
Joined
Apr 3, 2007
Messages
32,039
Reaction score
29
M

MangoTuna65

Senior Member
Joined
Aug 24, 2020
Messages
1,609
Reaction score
38
5408854088 said:
SINGAPORE retail sales fell 10.8 per cent year on year in September, reversing the previous two months' trend of lessening declines, according to the Singapore Department of Statistics (Singstat) on Thursday. Separately, food and beverage services also saw a small deepening in year-on-year declines.

https://www.businesstimes.com.sg/go...september-dragged-by-lower-mobile-phone-sales
Click to expand...

Everyone put money in stocks to chase the bulls, where got time and money to do shopping?
 
You must log in or register to reply here.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top