General S-REITs Discussion Thread

[demoforce1]

'Stars are aligned' for hospitality and office REITs, which will 'continue to shine': DBS​

https://www.theedgesingapore.com/ca...nd-office-reits-which-will-continue-shine-dbs
Singapore REITs (SREITs) are seen as a safe haven when the yield curve flattens in a rising interest rate environment. Even amid market volatility, “the stars are aligned” for hospitality and office sectors, say DBS Group Research analysts Rachel Tan and Dale Lai.

“While the SREITs are not spared by the rising interest rate environment, it can still outperform in instances when the yield curve flattens, which we will see in 2H2022-2023. As such, despite the reopening plays having already done well YTD at 10%, we believe that the hospitality and office sectors will continue to shine on the back of improving fundamentals,” write the analysts on May 20.

Tan and Lai’s top picks are CapitaLand Integrated Commercial Trust (CICT) and Keppel REIT (KREIT) for office plays, and Ascott Residence Trust (ART) and CDL Hospitality Trusts (CDLHT) for hospitality.

For retail and industrial, they prefer REITs with the “strongest growth profile”, namely Frasers Centrepoint Trust (FCT) and Lendlease Global Commercial REIT (LREIT) for the retail sector and Mapletree Industrial Trust (MINT) and Frasers Logistics & Commercial Trust (FLT) for the industrial sector.

Tan and Lai write: “For the rest of the year 2022, we believe the office and hospitality sectors will continue to shine, given expected tailwinds in the respective sectors. The office sector continues to see positive catalysts in both demand and supply.”

They add: “The office sector has seen strong demand from both tenant expansions and new demand from regional relocations to Singapore, which offset a potential downsizing due to the adoption of the hybrid working model. The lack of quality new supply in core CBD will drive rents up on the back of strong demand with vacancy likely to trend below 4%.”

SREITs square up with inflation

SREITs are stepping up to reduce inflationary pressures from utility costs and interest rates, say Tan and Lai.

In the 1QFY2022 results and updates, Tan and Lai saw SREITs starting to refinance their near-term debt expiries, reducing to 11% and 17% in FY2022 and FY2023 respectively, largely in the industrial and hospitality sectors.

The hedged ratio increased to 77% from 75% as at end-2021, which the analysts believe provides increased defence against rising interest costs. “While utility costs are on the rise, we remain comforted that most SREITs are locked in with contracts ending from the latter half of 2022 onwards. This will impact industrial the least while retail may experience a lag before higher costs could be passed through,” they add.

Acquisitions are likely to be selective and targeted moving forward, say DBS. “With cap rate spreads tightening as interest rates rise, we expect inorganic growth to turn challenging and acquisitions to be more selective and targeted moving forward.”

Most SREITs do not expect cap rates to widen in the near term, say Tan and Lai, and, if at all, will likely see it lagging interest rate movement. “As such, SREITs could potentially turn to higher yield commercial assets or development projects in search of value-accretive acquisitions. Industrial players’ SREIT acquisition momentum will slow the most, save for those with sponsor support and pipelines.”

nice, huat ah!

 

[TehSi99]

nice, huat ah!

But I see price dropping.

'Stars are aligned' for hospitality and office REITs, which will 'continue to shine': DBS​

https://www.theedgesingapore.com/ca...nd-office-reits-which-will-continue-shine-dbs
Singapore REITs (SREITs) are seen as a safe haven when the yield curve flattens in a rising interest rate environment. Even amid market volatility, “the stars are aligned” for hospitality and office sectors, say DBS Group Research analysts Rachel Tan and Dale Lai.

“While the SREITs are not spared by the rising interest rate environment, it can still outperform in instances when the yield curve flattens, which we will see in 2H2022-2023. As such, despite the reopening plays having already done well YTD at 10%, we believe that the hospitality and office sectors will continue to shine on the back of improving fundamentals,” write the analysts on May 20.

Tan and Lai’s top picks are CapitaLand Integrated Commercial Trust (CICT) and Keppel REIT (KREIT) for office plays, and Ascott Residence Trust (ART) and CDL Hospitality Trusts (CDLHT) for hospitality.

For retail and industrial, they prefer REITs with the “strongest growth profile”, namely Frasers Centrepoint Trust (FCT) and Lendlease Global Commercial REIT (LREIT) for the retail sector and Mapletree Industrial Trust (MINT) and Frasers Logistics & Commercial Trust (FLT) for the industrial sector.

Tan and Lai write: “For the rest of the year 2022, we believe the office and hospitality sectors will continue to shine, given expected tailwinds in the respective sectors. The office sector continues to see positive catalysts in both demand and supply.”

They add: “The office sector has seen strong demand from both tenant expansions and new demand from regional relocations to Singapore, which offset a potential downsizing due to the adoption of the hybrid working model. The lack of quality new supply in core CBD will drive rents up on the back of strong demand with vacancy likely to trend below 4%.”

SREITs square up with inflation

SREITs are stepping up to reduce inflationary pressures from utility costs and interest rates, say Tan and Lai.

In the 1QFY2022 results and updates, Tan and Lai saw SREITs starting to refinance their near-term debt expiries, reducing to 11% and 17% in FY2022 and FY2023 respectively, largely in the industrial and hospitality sectors.

The hedged ratio increased to 77% from 75% as at end-2021, which the analysts believe provides increased defence against rising interest costs. “While utility costs are on the rise, we remain comforted that most SREITs are locked in with contracts ending from the latter half of 2022 onwards. This will impact industrial the least while retail may experience a lag before higher costs could be passed through,” they add.

Acquisitions are likely to be selective and targeted moving forward, say DBS. “With cap rate spreads tightening as interest rates rise, we expect inorganic growth to turn challenging and acquisitions to be more selective and targeted moving forward.”

Most SREITs do not expect cap rates to widen in the near term, say Tan and Lai, and, if at all, will likely see it lagging interest rate movement. “As such, SREITs could potentially turn to higher yield commercial assets or development projects in search of value-accretive acquisitions. Industrial players’ SREIT acquisition momentum will slow the most, save for those with sponsor support and pipelines.”

Why reits prices dropping?

 

[Mephist0pheLes]

But I see price dropping.


Why reits prices dropping?

Cos of interest rate?

 

[dappermen]

they are being slapped left and right by Inflation and rentals! & centre too (if they get loans from banks to buy equipmt and to invest in their shops)
if they are out? we?
https://www.businesstimes.com.sg/re...utm_source=telegram&utm_medium=social-organic

Yes, affected by interest rate, it didnt happen just on this week



& https://www.businesstimes.com.sg/co...utm_source=telegram&utm_medium=social-organic

 

[audiovideo]

So buy or no buy

 

[Shion]

Signs of an inflection point for S-Reits with Europe, US office assets​

https://www.businesstimes.com.sg/co...oint-for-s-reits-with-europe-us-office-assets
DATA for office markets in Europe and United States (US) are indicating potential signs of recovery. European office occupier activity remains robust and rents resilient in Q1 2022, and Q4 2021 recorded the strongest quarterly leasing volume since Q4 2018 driven by pent-up demand (Knight Frank, Savills).

Meanwhile in the US, leasing activity rose 5.4 per cent over Q1 2022, marking the fifth consecutive quarter of improved tenant demand (JLL).

There are 6 S-Reits with pure Europe and US office properties: Cromwell European Reit, IReit Global, and Elite Commercial Reit have pure Europe office assets, while Manulife US Reit, Prime US Reit, and Keppel Pacific Oak US Reit have pure US office assets.

Cromwell European Reit reported 94.8 per cent in overall portfolio occupancy and 4.2 per cent positive rent reversion.

Its office portfolio registered positive rent reversion of 1.6 per cent, from several lease renewals and smaller new leases in Italy, France, and Finland. It noted preference in Europe trends towards shorter lease durations and flexible leases, while nascent recovery has been tempered by Ukraine-Russia developments which has reduced appetite for office expansions in Finland and Poland.

IReit Global reported an unchanged portfolio occupancy at 95.7 per cent as at Mar 31, 2022. It expects its portfolio to remain resilient, supported by a blue-chip tenant mix and diversified asset base.

IReit will continue to focus on asset management to maintain occupancy and long-term attractiveness through sustainability initiatives.

Elite Commercial Reit reported a 36.2 per cent year-on-year growth in Q1 2022 distributable income, driven by its maiden portfolio acquisition and tax savings as a UK Reit group. It achieved positive outcome from its major lease re-gearing exercise, removing lease break options from 109 assets (set to occur in March 2023).

It received notice to exercise break options for 8 of remaining 9 Department for Work and Pensions (DWP)-occupied assets and will actively manage these. The Reit’s portfolio remains fully occupied as of Mar 31, 2022.

Manulife US Reit reported 3.9 per cent positive rent reversion and portfolio occupancy of 91.7 per cent in Q1 2022, above US Class A average (83 per cent). It noted that employment in most office-using sectors are above pre-Covid-19 levels, led by professional services, information, and financial activities.

Prime US Reit continued to observe stronger leasing activity for Q1 2022, which more than doubled year on year, and positive rent reversion of 3.4 per cent.

Rent reversions over the last 7 quarters have consistently remained positive. It noted that portfolio rents are below asking rents by 6.0 per cent, reflecting the continued potential for rent reversion.

Parking revenue also increased by over 30 per cent as more return to offices in Q1 2022.

Keppel Pacific Oak US Reit reported 2.4 per cent positive rent reversion for Q1 2022 with zero rent deferment requests. It noted new leading demand and expansions from professional services, finance and insurance, TAMI (technology, advertising, media, information), and medical and healthcare. It noted tenants appear to have long-term confidence in the office market as more companies expand footprints. SGX RESEARCH

 

[Andrew833]

For those who still holding MNACT shares;
Last day of trading of the MNACT Units Wednesday, 8 June 2022
Suspension of trading of the MNACT Units Thursday, 9 June 2022 at 9.00 a.m.

Date for the payment of the Cash-Only Consideration and/or the cash component of the Cash-and-Scrip Consideration (as the case may be) to MNACT Unitholders Friday, 29 July 2022

Applicable period in respect of the odd lots trading arrangement put in place by the MNACT Manager for the trading of odd lots of MCT Units Friday, 29 July 2022 to Monday, 29 August 2022(8)
Date of delisting of MNACT Wednesday, 3 August 2022

In case you miss this information.

 

[Andrew833]

Date of announcement of the conditional Record Date for the Trust Scheme Date of announcement of the conditional record date for the clean-up distribution to MNACT Unitholders (“MNACT Clean-up Distribution”) Date of announcement of the conditional record date for the clean-up distribution to MCT Unitholders (“MCT Clean-up Distribution”)
Tuesday, 31 May 2022

In case you miss this information.

 

[Dividends Warrior]

Power of CD!

 

[audiovideo]

https://www.businesstimes.com.sg/co...ed-by-analysts-amid-growth-inflation-concerns

 

[limster]

Power of CD!

Power of CD!

I've always believed in REITs and I am still holding 9 counters (list keeps on shrinking due to delisting and consolidation) since GFC.

The only thing investors have to do is to make sure you buy them at the right price!

https://www.businesstimes.com.sg/co...ed-by-analysts-amid-growth-inflation-concerns

According to this article, its recommended to be a Dividend Tech Warrior!

 

[TehSi99]

Power of CD!

I've always believed in REITs and I am still holding 9 counters (list keeps on shrinking due to delisting and consolidation) since GFC.

The only thing investors have to do is to make sure you buy them at the right price!



According to this article, its recommended to be a Dividend Tech Warrior!

Just to add. Have to buy the right reits, not only at the right price. A lot of patience is required to buy at the right time.

 

[audiovideo]

Last week scratching warchest bottom for gold dust in order to jib

 

[dappermen]

To me , Reits is NOT

Properties co. then are REAL real Est., whenever there is a need to post something on Properties on a Reits thread/forum, i dont dare too, cos to me pp here dont see Properties REAL est, but see otherwise

Are Reits really real estate?
https://www.businesstimes.com.sg/wealth-investing/are-reits-really-real-estateAs we mark the 20th anniversary of S-Reits, it is timely for us to reflect upon this investment vehicle and see how far it has grown from its brick-and-mortar roots.

To conclude:
Why are some S-Reits’ assets priced at significant premiums, such as Parkway Life Reit* and Keppel DC Reit, where their PBs exceed one, whereas other S-Reits see their real estate assets significantly discounted?

The heterogeneity in PB ratios for S-Reits may imply that Reits are not perfect substitutes for physical real estate investments. However, we cannot invalidate that Reits are still an attractive vehicle that allows a broad band of investors to gain exposure to the physical real estate market.


* cos investors, (irrational or not) , will chase after it once they deeemed it good.......
been dropping since more than 1yr+ , nevertheless many still deemed Parkway Life reit a golden one! Golden goose somemore or i m blind to something else?
https://www.sgx.com/indices/products/sgxhc

 

[TehSi99]

To me , Reits is NOT

Properties co. then are REAL real Est., whenever there is a need to post something on Properties on a Reits thread/forum, i dont dare too, cos to me pp here dont see Properties REAL est, but see otherwise

Are Reits really real estate?
https://www.businesstimes.com.sg/wealth-investing/are-reits-really-real-estateAs we mark the 20th anniversary of S-Reits, it is timely for us to reflect upon this investment vehicle and see how far it has grown from its brick-and-mortar roots.

To conclude:
Why are some S-Reits’ assets priced at significant premiums, such as Parkway Life Reit* and Keppel DC Reit, where their PBs exceed one, whereas other S-Reits see their real estate assets significantly discounted?

The heterogeneity in PB ratios for S-Reits may imply that Reits are not perfect substitutes for physical real estate investments. However, we cannot invalidate that Reits are still an attractive vehicle that allows a broad band of investors to gain exposure to the physical real estate market.


* cos investors, (irrational or not) , will chase after it once they deeemed it good.......
been dropping since more than 1yr+ , nevertheless many still deemed Parkway Life reit a golden one! Golden goose somemore or i m blind to something else?
https://www.sgx.com/indices/products/sgxhc

Parkway reits and KDC are two reits i see often in reports. They are classified as BUY long before and with their prices continuing to drop, they are now classified as BUY & CHEAP.

 

[TehSi99]

Congrats to those who have average down the good reits 1-2 weeks ago.

With the recent price moving up abit, hope you are in a better position now.

 

[Dividends Warrior]

Power of CD!

I've always believed in REITs and I am still holding 9 counters (list keeps on shrinking due to delisting and consolidation) since GFC.

The only thing investors have to do is to make sure you buy them at the right price!

According to this article, its recommended to be a Dividend Tech Warrior!

Yup, banks + REITs + Tech

 

[dappermen]

finally it is a clearer segregation between Properties & others v Reits!

To me , Reits is NOT

Properties co. then are REAL real Est., whenever there is a need to post something on Properties on a Reits thread/forum, i dont dare too, cos to me pp here dont see Properties REAL est, but see otherwise

Are Reits really real estate?
https://www.businesstimes.com.sg/wealth-investing/are-reits-really-real-estateAs we mark the 20th anniversary of S-Reits, it is timely for us to reflect upon this investment vehicle and see how far it has grown from its brick-and-mortar roots.

To conclude:
Why are some S-Reits’ assets priced at significant premiums, such as Parkway Life Reit* and Keppel DC Reit, where their PBs exceed one, whereas other S-Reits see their real estate assets significantly discounted?

The heterogeneity in PB ratios for S-Reits may imply that Reits are not perfect substitutes for physical real estate investments. However, we cannot invalidate that Reits are still an attractive vehicle that allows a broad band of investors to gain exposure to the physical real estate market.


* cos investors, (irrational or not) , will chase after it once they deeemed it good.......
been dropping since more than 1yr+ , nevertheless many still deemed Parkway Life reit a golden one! Golden goose somemore or i m blind to something else?
https://www.sgx.com/indices/products/sgxhc

 

[Shion]

https://www.theedgesingapore.com/ca...nvested-hospitality-retail-and-office-s-reits
https://www.theedgesingapore.com/capital/brokers-calls/calm-may-return-s-reit-sector-june-dbs
https://www.theedgesingapore.com/ca...-higher-rates-and-costs-will-affect-dividends

 

[TehSi99]

Who is comtrollong the reits prices? For sure, it is not the retailers.