General S-REITs Discussion Thread

[Andrew833]

I think @Dividends Warrior is one of the best REIT pickers and his portfolio also has similar returns and coincidenly over similar period. I think in the years following the GFC, HK and Australia REITs did better than SG, because SG did various cooling measures and restrictions. But last 2 years HK REITs were hit badly so SG might have done better than the Asia REIT index. I personally think Asia REIT index is safer as it is more diversified.

Yes, @Dividends Warrior pick mostly all the top REITs and he already venture out to growth stocks. This show us that, DIY is not that difficult. It's our emotion that keep us doing the wrong thing.

I just check Asia REIT index, the performance is not that great, 3yr negative, 2yr negative, 1 yr negative. From launch price $1 drop to 0.9xx. You still need to pay them management fee.
Personally don't think this is a good fund to put your money.

 

[Andrew833]

早报 said fund running away from reits

Don't listen to those noise, their news are outdated.

 

[soneat]

May not be bad entirely?? Wat do u think ?

EC World Real Estate Investment Trust (EC World Reit) : The Reit's potential purchasers have backed out of talks to potentially buy all of its properties, it's manager announced in a bourse filing on Tuesday night.

https://www.businesstimes.com.sg/st...orld-reit-sgx-comfortdelgro-cdl-digilife-tech

I used to own EC World but has divested fully.
EC World has too many "news" for my liking, some of which includes:
i) It's parent entity was leading a consortium to explore a buyout but yesterday just announced they are backing out.
ii) (last year) CIO was interviewed by CAD. The REIT itself seems not to be implicated.
iii) (last year) An interest payable by the tenant was waived off by the REITs manager. The amount was not small.
iv) Much of the leases are master-leased to the Sponsor. To me, there's a significant conflict of interest.


There are many REITs out there and money can be made in any counter as long as the entry price is correct. However, I personally prefer to stick with either REITs with strong sponsor or REITs that have proven themselves over a long period of time and buy them when the price is right.

 

[soneat]

早报 said fund running away from reits

Well, many people can say many things.

There's people who say rising i/r will cause share price to fall.
There's people who say buying "dividend stock" is not good and one should "DCA" long-term into the various US/Global/S&P ETFs.

Bottom-line is to "win" in the strategy one chooses (be it REITs, S&P, "Growth stock", Tesla etc) to adopt:
i) we must be realistic with the target returns
ii) know the subject matter well
iii) manage risk (e.g. divest away from airline and hospitality around Feb/Mar 2020)
iv) capture opportunity (e.g. add stakes in logistics and industrials around Mar/Apr 2020)

Understand your own personality well. Treat "news from articles" and "expert advices from social media/forums" as sources of information - Extract the facts, discard the opinions/biasedness.

 

[Andrew833]

I used to own EC World but has divested fully.
EC World has too many "news" for my liking, some of which includes:
i) It's parent entity was leading a consortium to explore a buyout but yesterday just announced they are backing out.
ii) (last year) CIO was interviewed by CAD. The REIT itself seems not to be implicated.
iii) (last year) An interest payable by the tenant was waived off by the REITs manager. The amount was not small.
iv) Much of the leases are master-leased to the Sponsor. To me, there's a significant conflict of interest.


There are many REITs out there and money can be made in any counter as long as the entry price is correct. However, I personally prefer to stick with either REITs with strong sponsor or REITs that have proven themselves over a long period of time and buy them when the price is right.

EC World debts handling very lousy, so take note for those vested.

 

[dappermen]

早报 said fund running away from reits

post here pls

 

[dappermen]

tks all Reit-师兄！ Ec pr is rather stable

I used to own EC World but has divested fully.
EC World has too many "news" for my liking, some of which includes:
i) It's parent entity was leading a consortium to explore a buyout but yesterday just announced they are backing out.
ii) (last year) CIO was interviewed by CAD. The REIT itself seems not to be implicated.
iii) (last year) An interest payable by the tenant was waived off by the REITs manager. The amount was not small.
iv) Much of the leases are master-leased to the Sponsor. To me, there's a significant conflict of interest.


There are many REITs out there and money can be made in any counter as long as the entry price is correct. However, I personally prefer to stick with either REITs with strong sponsor or REITs that have proven themselves over a long period of time and buy them when the price is right.

EC World debts handling very lousy, so take note for those vested.

Well, many people can say many things.

There's people who say rising i/r will cause share price to fall.
There's people who say buying "dividend stock" is not good and one should "DCA" long-term into the various US/Global/S&P ETFs.

Bottom-line is to "win" in the strategy one chooses (be it REITs, S&P, "Growth stock", Tesla etc) to adopt:
i) we must be realistic with the target returns
ii) know the subject matter well
iii) manage risk (e.g. divest away from airline and hospitality around Feb/Mar 2020)
iv) capture opportunity (e.g. add stakes in logistics and industrials around Mar/Apr 2020)

Understand your own personality well. Treat "news from articles" and "expert advices from social media/forums" as sources of information - Extract the facts, discard the opinions/biasedness.

 

[revhappy]

Yes, @Dividends Warrior pick mostly all the top REITs and he already venture out to growth stocks. This show us that, DIY is not that difficult. It's our emotion that keep us doing the wrong thing.

I just check Asia REIT index, the performance is not that great, 3yr negative, 2yr negative, 1 yr negative. From launch price $1 drop to 0.9xx. You still need to pay them management fee.
Personally don't think this is a good fund to put your money.

There are various Asia REIT indices one by FTSE and one by MSCI.
The MSCI says 3yr is 6.49% annualized, YTD is 5.8% and 5 yr is 7.16%

https://www.msci.com/documents/10199/4a3c23f7-5e7c-4389-a7fd-92da1c496db6

 

[limster]

I prefer to select pick my own REITs than to use REIT ETF. there are some REITs that I will never touch, and with individual counters, I can apply for excess rights which is free money.

 

[revhappy]

I prefer to select pick my own REITs than to use REIT ETF. there are some REITs that I will never touch, and with individual counters, I can apply for excess rights which is free money.

How about actively managed REIT funds? For people who are not good with evaluating REITs, can good fund manager pick good REITs and also subscribe to the rights?

 

[Andrew833]

I prefer to select pick my own REITs than to use REIT ETF. there are some REITs that I will never touch, and with individual counters, I can apply for excess rights which is free money.

Very true. REITs ETF also got very low volume as compare to individual REIT.

 

[Andrew833]

How about actively managed REIT funds? For people who are not good with evaluating REITs, can good fund manager pick good REITs and also subscribe to the rights?

I think the way the ETF and funds work differently as compare to owning the REIT itself.
If you invest in REIT, you can choose to subscribe or not for the Rights issue.
If you invest in ETF and Funds, you can't choose to subscribe or not for the Rights issue. ETF and Funds managers will decide for you. There will be no change for your cost price. ETF track index, so shouldn't change much of the portfolio. Funds managers may subscribe for the Rights issue to reduce their cost price (not yours), that's depend on the available cash and management decision.

 

[soneat]

I prefer to select pick my own REITs than to use REIT ETF. there are some REITs that I will never touch, and with individual counters, I can apply for excess rights which is free money.

I think we share similar philosophy. =D

These are some things I do to enhance my yield from time to time.

1. Opportunities from merger.
Example 1: During 2020 crisis, when FCOT was acquired by FLCT.
I had stake in both counters. However, due to the pricing discrepancies between the 2 counters, I had many chances to sell FLCT and buy FCOT and in the process, I know I would end up with the same amount of FLCT at a cheaper price.
Example 2: FLCT range bound trading between 1.4 to 1.5.
As I have a significant stake in FLCT, I sell it when it reaches above 1.5 and buy it again when it is near 1.4. Nett effect is book the profit and hence lower the cost.
My effective FLCT price is currently around 0.92 and hence the current yield on cost is 8.43% (based on 7.76c dpu, annualized) and capital gain above cost is around 65% (based on current closing price of 1.52).

2. Opportunities from equity fund raising
For REITs that I am holding and the outlook is bright, I will oversubscribe by many times and try to get as much as possible.

Key thing is to identify the "correct" counter and buy/sell at the "correct" time. Also, having capital and time will allow one to reap the rewards over the long run. This is also precisely why I try not to touch counters such as ECWorld as I do not know if they will exist long enough. Coincidentally, one of the REITs that I have been accumulating quite aggressively in Q4 was MNACT. Sold off 20% of my MNACT holdings on Monday (26th Dec) when the price hit the limit sell order that I have placed on 1st Dec. In any case, I have booked in the profit and hence lowered my MNACT cost even lower.

The beauty of being a REIT player is you do not have to move or react quickly. Also, you don't have to keep staring at the counters every day.

 

[dappermen]

Coincidentally, one of the REITs that I have been accumulating quite aggressively in Q4 was MNACT. Sold off 20% of my MNACT holdings on Monday

yes ie one of the Confirmed lousy yet Popular Maple!

but isnt ur decision TOo Short Term??

 

[soneat]

yes ie one of the Confirmed lousy yet Popular Maple!

but isnt ur decision TOo Short Term??

Confirmed lousy by who?

I have my own portfolio strategy and allocation. Q4 did an overdrive to over-allocate and did a partial divestment to normalise and book in the profit.

 

[dappermen]

by who?

by investors! Nt every stk is well-loved

青菜萝卜各有所爱

 

[soneat]

by investors! Nt every stk is well-loved

OK but I don't think all investors have confirmed its lousy.

If one chooses to buy a "well loved" stock blindly at any price, it can also have poor returns.

 

[dappermen]

yes
Not all but there r a majority believe in the “name” is a promise/guarantee of good support

 

[soneat]

yes
Not all but there r a majority believe in the “name” is a promise/guarantee of good support

MNACT has indeed underperformed in the past 2 years due to many circumstances beyond their control.

The manager has undertaken to waive off their performance fee till DPU recovers and the sponsor has injected a number of Japanese properties to stabilise the portfolio.

While it's performance is mediocre, I feel that the manager and sponsor have been proactive enough.

Personally, I don't bother about what the "majority" thinks, I get the facts and figures objectively, so as to shape my allocation and portfolio accordingly.

 

[soneat]

yes ie one of the Confirmed lousy yet Popular Maple!

but isnt ur decision TOo Short Term??

Regarding the 'short term' comment, take a look at post 4577 again, where I shared the strategy I took for FLCT. What I did for MNACT is similar to what I did for FLCT as well as some of the other counters I held, when opportunities arises.