General S-REITs Discussion Thread

[Shion]

Healthcare S-Reits see stable growth and resilience​

https://www.businesstimes.com.sg/co...care-s-reits-see-stable-growth-and-resilience
SINGAPORE lists 2 actively traded Healthcare related S-Reits – ParkwayLife Reit and First Reit. Healthcare Reits invest in income-producing real estate primarily used for healthcare related purposes including but not limited to hospitals, medical offices, outpatient facilities and nursing facilities. As such, these Reits may be regarded as an option for investors to gain exposure to the growing and resilient healthcare sector.

ParkwayLife Reit is one of the largest listed healthcare Reits in Asia with a portfolio of 56 properties at S$2.29 billion in size. It has 64.6 per cent of its portfolio in hospitals and medical centres, and 35.4 per cent in nursing homes, across Singapore (64.3 per cent), Japan (35.4 per cent), and Malaysia (0.3 per cent).

ParkwayLife Reit reported 2.3 per cent year-on-year higher gross revenue for Q1 2022, arising from the3 properties it acquired last year and higher rent received from Singapore hospitals. The Reit noted that its distribution per unit (DPU) has grown steadily at a rate of 122.8 per cent since its listing.

In its Singapore portfolio (hospitals include Mouth Elizabeth Hospital, Parkway East Hospital, and Gleneagles Hospital), its master lessee Parkway Hospitals Singapore, is a wholly owned subsidiary of IHH Health which is one of the world’s largest healthcare networks with 80 hospitals in 10 countries. Its latest renewal term of 20.4 years runs from Aug 23, 2022 to Dec 31, 2042, with an option to renew for a further 10 years. It has a triple net lease arrangement which means that the Reit does not bear property taxes, property insurance, property operating expenses and is unaffected by inflated-related escalating expenses.

In its Japan portfolio, it owns 52 nursing home properties with a weighted average lease term to expiry of 11.79 years and a diversified tenant base across 28 nursing home operators. Based on its existing lease arrangements, about 95.2 per cent of its Japan portfolio is downside-protected.

First Reit has a portfolio of 31 properties comprising 16 in Indonesia, 3 in Singapore and 12 in Japan with a combined size exceeding S$1.2 billion. Its Reit manager is 60 per cent owned by OUE Limited and 40 per cent owned by OUE Lippo Healthcare (OUELH). As such, the Reit has rights-of-first refusal to a pipeline of properties from PT Lippo Karawaci Tbk and OUELH.

First Reit in its Q1 2022 business update reported 34.9 per cent year-on-year growth in net property and other income and 1.5 per cent growth in DPU paid (0.66 Singapore cents for Q1 2022). Following its maiden entry into Japan with the acquisition of 12 nursing homes, First Reit noted that it has successfully taken the first step of its First Reit 2.0 Growth Strategy to expand into developed markets and diversify geographical risk.

First Reit’s Indonesia hospital operator, PT Siloam International Hospitals Tbk reported stable quarter-on-quarter performance for Q1 2022 despite the impact of the Omicron variant. First Reit’s nursing homes in Japan and Singapore also noted high occupancy rates and the Reit remains confident of the resilient healthcare market in its operating markets.

 

[vsvs24]

https://www.businesstimes.com.sg/co...to-privatise-fht-at-s070-per-stapled-security
Offer price seems not bad.

***

FRASERS Property Hospitality Trust Holdings, a wholly-owned subsidiary of Frasers Property : TQ5 0%, is proposing to privatise Frasers Hospitality Trust : ACV 0% (FHT) through a trust scheme of arrangement.

The offeror is proposing to acquire all of FHT’s stapled securities – other than those held by TCC Group Investments and Frasers Property and its subsidiaries – at a scheme consideration of S$0.70 each in cash, it said in a bourse filing on Monday (Jun 13).

The scheme consideration represents a premium of 43.8 per cent over the 12-month volume-weighted average price per stapled security up to and including Apr 7, the last full trading day prior to the announcement of its strategic review, and a premium of 16.7 per cent over recent analyst consensus of the counter’s target price in 2022.

 

[prophetjul]

Prime US Reit
The share price fo this Reit has been awful, dropped from 88 cents in late 2021 to the present 68 cents.
Earnings looks decent. Why the huge drop?

 

[Shion]

Singapore hospitality Reits seen as ripe for more take-private deals​

https://www.straitstimes.com/busine...eits-seen-as-ripe-for-more-take-private-deals

 

[TehSi99]

Prime US Reit
The share price fo this Reit has been awful, dropped from 88 cents in late 2021 to the present 68 cents.
Earnings looks decent. Why the huge drop?

This is one reits that is dropping for reasons I unknow too. Have cut loss few weeks ago when I see prices dropping non-stop.

IIRC, one bro here mentioned the locations of the offices are not good. But again, if the locations are cui, why built in the first place?

Maybe other bro has something to share?

 

[prophetjul]

This is one reits that is dropping for reasons I unknow too. Have cut loss few weeks ago when I see prices dropping non-stop.

IIRC, one bro here mentioned the locations of the offices are not good. But again, if the locations are cui, why built in the first place?

Maybe other bro has something to share?

Hi. i am just looking into it. If the properties are no good, why are the earnings looking so good?
It is yielding 10% at present price.

 

[cesc88]

Hi. i am just looking into it. If the properties are no good, why are the earnings looking so good?
It is yielding 10% at present price.

It’s in my watchlist too and I have the same queries as you

 

[Shion]

Merger of MCT and MNACT creates pathway for growth​

https://www.businesstimes.com.sg/co...r-of-mct-and-mnact-creates-pathway-for-growth
THE ongoing merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) is on track to create one of top 10 largest Reits in Asia.

The merged entity, Mapletree Pan Asia Commercial Trust (MPACT) will have an estimated market capitalisation of over S$10 billion and will hold a diversified portfolio of 18 commercial assets across Singapore, China, Hong Kong, Japan and South Korea, with assets under management (AUM) of approximately S$17.1 billion.

The Reit managers believe that the merger will provide a pathway for growth by merging MCT, a Singapore-focused Reit, with MNACT, a ready and established platform that has scale and reach in North Asia.

MCT cited that this will in turn bring about immediate financial benefits and access to attractive footholds into North Asia supported by established local operating teams with extensive experience and a strong track record.

Other key benefits cited by the Reits include enhanced financial flexibility to pursue more growth opportunities such as larger acquisitions and capital recycling opportunities, increased liquidity and index representation, enhanced geographic diversification, reduced single asset concentration and improved tenant diversification as well as immediate financial benefits in terms of distribution per unit (DPU) and net asset value (NAV) accretion on a historical pro forma basis.

Post-merger, MPACT will hold best-in-class assets such as Festival Walk in Hong Kong, Mapletree Business City and VivoCity in Singapore.

The Reit managers believe that together, these will improve overall cash flow stability and resilience through market cycles.

MPACT will host major tenants with global businesses such as Google, BMW, Seiko, HP Japan and NTT UD.

Together, the top 10 tenants by gross rental income (GRI) will contribute 23 per cent of its GRI post-merger. This is down from MCT’s 27.7 per cent and MNACT’s 37.7 per cent, reducing income concentration.

Unitholders of MCT and MNACT have voted in favour of the merger last month.

The merger will be effected through the acquisition by MCT of all the issued and paid-up units of MNACT by way of a trust scheme of arrangement.

During the election period, each MNACT unitholder is entitled to choose only one form of scheme consideration: scrip-only, cash-and-scrip or cash-only options. The cash-only consideration will be the default form of the scheme consideration.

Based on indicative dates announced by the Reit managers, the election period is expected to run from Jun 15 to 29 while the merged entity is expected to begin trading on Jul 29.

MNACT’s estimated date of delisting will be on Aug 3.

 

[Shion]

 

[endlssorrow]

Wow
Suntec drop all e way back $1.59 liao

 

[snowcrabramyeon]

https://www.theedgesingapore.com/ca...eit-sell-due-unattractive-risk-reward-profile

 

[weng0202]

Most reits prices are lower than their ipo prices except those from mapletree and fraser. Jialat leh.

 

[limster]

Most reits prices are lower than their ipo prices except those from mapletree and fraser. Jialat leh.

quality of management and the talent pipeline is important. this is a neglected factor and market doesn't seem to be able to price this in that effectively. this is the sort of info you can gain by networking. apart from asking about the rental situation, whether it is the landlord or tenants market, can ask about management quality.

if you read the biographies of famous value investors like Anthony Bolton, you can see how much importance they place on management quality in their decision whether to invest.

 

[weng0202]

quality of management and the talent pipeline is important. this is a neglected factor and market doesn't seem to be able to price this in that effectively. this is the sort of info you can gain by networking. apart from asking about the rental situation, whether it is the landlord or tenants market, can ask about management quality.

if you read the biographies of famous value investors like Anthony Bolton, you can see how much importance they place on management quality in their decision whether to invest.

Yeah, thankfully I did not buy those "junk" reits or already sold off most liao. Only kept mostly those from mapletree and capitaland.

 

[Andrew833]

S-REIT with 100% exposure to China Market Part 1
Dasin Retail Trust
When we buy REIT, many people only look at the Gearing Ratio and DPU (dividend). Many information provided to us during the REIT earning report and annual report but we overlook it. We trust the management will handle well the REIT, so that we can relax and collect our dividend yearly. They are the experts in the property market. No! We need to check and assess them during their quarterly or semi- annually earning report. We need to check if the REIT is still healthy or debt ridden or badly manage or any other issue. Don’t forget it’s our hard earn money.

Below is my blog on how the Dasin Retail Trust management handle their debts and loan renewal.
https://dividendnewb.blogspot.com/2022/06/s-reit-with-100-exposure-to-china.html

 

[Andrew833]

S-REIT with 100% exposure to China Market Part 2
EC World REIT
EC World REIT is the first Chinese specialised logistics and e-commerce logistics real estate investment trust to be listed on the SGX. IPO with 6 properties in 2016. Brought Wuhan Meiluote in December 2018 and Fuzhou E-Commerce in August 2019.

Below is my blog on how the EC World REIT management handle their debts and loan renewal.
https://dividendnewb.blogspot.com/2022/06/s-reit-with-100-exposure-to-china_23.html
The Facilities were used to refinance all of EC World REIT’s existing onshore and offshore term loans due in 2019, and partially fund the acquisitions of Fuzhou E-Commerce (please refer to the announcement released by EC World REIT dated 10 May 2019) and to finance EC World REIT’s working capital and other general corporate purposes as stated in the announcement titled “Drawdown on loan facilities” which was released on 29 July 2019 and the announcement titled “Further Drawdown On Loan Facilities And Completion Of Acquisitions Of Fuzhou eCommerce” which was released on 8 August 2019. (1st red flag)

 

[audiovideo]

MINT go go go

 

[snowcrabramyeon]

MINT go go go

This morning is MLT go go go

 

[yumsang]

both same same go go go

 

[Shion]

Five S-Reits drawing net institutional inflows in 2022 year to date​

https://www.businesstimes.com.sg/co...et-institutional-inflows-in-2022-year-to-date
IN Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE Developed Index declined 16 per cent. The iEdge S-Reit Index maintained resilience with a 2 per cent decline in total returns, while the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) declined 15 per cent.

For the quarter-to-date, Singapore stocks have seen S$1.05 billion of net institutional outflows, reducing the 2022 year-to-date (YTD) net institutional inflow to S$74 million.

The technology sector has continued to weigh on global stocks, with hospitality and real estate also lagging. Banks, technology, and Reits have now booked the most net institutional outflows across the sectors in 2022 YTD. In the YTD, STI’s total returns have maintained at 1 per cent and iEdge S-Reit Index has declined 0.8 per cent. The FTSE EPRA Nareit Developed Index declined 18 per cent in the YTD.

From an SGX Research market update last week, the 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the YTD proportionate to their current market capitalisation included 5 S-Reits. These 20 stocks averaged 22 per cent total returns in the YTD. The 5 S-Reits were Ascott Residence Trust, Suntec Reit, CapitaLand Integrated Commercial Trust, Frasers Hospitality Trust, and Keppel Reit. These 5 S-Reits averaged 18 per cent total returns in the YTD and saw combined net institutional inflows exceeding S$300 million.

Over the past 5 trading sessions through to Jun 23, institutional investors were net buyers of Singapore stocks with S$116 million of net inflows, following S$166 million in net outflows for the preceding 5 sessions. The top 5 stocks with the highest net institutional inflows were DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land.

Digital Core Reit in its Q1 2022 business update reported a 2 per cent increase in distributable income versus its IPO forecast. In April 2022, Digital Core Reit’s fifth-largest customer, a privately held IT service provider in Toronto, filed for bankruptcy protection. The Reit manager expects to be able to back-fill this capacity, given the tight market conditions in Toronto and updated that the customer event is not expected to impact distribution per unit.

In terms of director acquisitions over the past week, United Hampshire US Reit (UHReit) Managemen’s non-independent non-executive director David Tuvia Goss on Jun 20 and 22 acquired 500,000 units of UHReit at an average price of 60.9 US cents per unit.

UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.