General S-REITs Discussion Thread

[Raynon]

Reits in red today, who is brave to buy today?

 

[Jay6789]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

 

[Raynon]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

Lets see if it can hit below the previous covid low of 2400

 

[CaptainWu]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

STI still perform better than US and most of the other markets, seems like it is catching up....in particular Reits, even Reits with attractive yield also all going down. If you look around at Retail malls business are all okay but Stock market always ahead of 3-6 months so most investors expecting it will be getting worse.

 

[MrHighlander]

Reits in red today, who is brave to buy today?

I loaded up on some CLR today. Yes know it has .6% expense ratio but prefer due to diversification.
Any other drawbacks of CLR ? I have been buying CLR, not individual REITs, for some time.

 

[direbmem]

I bought more ESG today. Will buy more on the way down.

 

[revhappy]

@Dividends Warrior is this the toughest phase of your REITs investing lifetime or was 2015/16 worse?

 

[beta93]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

https://sg.finance.yahoo.com/quote/ME8U.SI/key-statistics?p=ME8U.SIp/b a bit high, p/e still ok. I think some of the mapletree and ascendas stocks p/e too high le, if average p/e of snp500 is 15.98, no way sg reits still rise if p/e higher than that.
fundamentally bad stocks are going to drop to where they belong

https://sg.finance.yahoo.com/quote/CY6U.SI/key-statistics?p=CY6U.SI
this is what i would buy instead, not financial advice

 

[stanlawj]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

Margin call! It hasn't bottomed yet. The worst will be in Q2 2023. That is when the rate hikes are kept at max for a few months, and the full effects flow through the entire global US dollar debt system. From now till Q2 2023, there will be rallies, but I'm not going to buy in because the upside is very limited for each rally.

 

[moonlighter_sg]

I feel so cheated by s-reits blue chips. Are these "legalized" scams at best? These reits are just like any other equities... can drop to few cents when there are continuous margin calls. The reits price is not tied to the their property price. Just a piece of stock which value is determined by market conditions. Every rallies are short-lived bull traps. The upside is an opportunity for shortists to make more money.

 

[zeroX26]

I feel so cheated by s-reits blue chips. Are these "legalized" scams at best? These reits are just like any other equities... can drop to few cents when there are continuous margin calls. The reits price is not tied to the their property price. Just a piece of stock which value is determined by market conditions. Every rallies are short-lived bull traps. The upside is an opportunity for shortists to make more money.

u rookie in the market that came in during the unrealistic bull calls of 2021?

 

[Mephist0pheLes]

why the so call blue chips of s-reits like ascendas and mapletree group falling like no bottom in sight.
SP500 is still above 3600 but our sgx is reaching new bottom.

Bcos of rising interest rate?

Risk free Interest rate go up by 2%, investors demand div yield to go up 2%. Reits unable to raise rent in pace so how? Price drop loh.

For a 6% div yield to increase to 8%, price has to adjust by 6/8 - 1 = -25%

 

[stanlawj]

Bcos of rising interest rate?

Risk free Interest rate go up by 2%, investors demand div yield to go up 2%. Reits unable to raise rent in pace so how? Price drop loh.

For a 6% div yield to increase to 8%, price has to adjust by 6/8 - 1 = -25%

Haven't added in the rising debt costs and management fee costs. (many REITS issue units to pay their property management company).

 

[prophetjul]

IMO the biggest caveat will be recession. If the high interest rates causes a long drawn recession, it will essentially affect the tenants, and therefore our income. There may be a reset of certain parameters like the rentals. Not sure if the managers are willing to reduce their fees?

 

[Jay6789]

looks like those holding on to s-reits are in for a period of lower div and capital loss....10 to 20%.
that includes me.

 

[weng0202]

looks like those holding on to s-reits are in for a period of lower div and capital loss....10 to 20%.
that includes me.

Another way to look at it is an opportunity to accumulate more good reits at better prices.

 

[Forestraintree]

Once we enter into a recession, fed will revise the rate hike which Singapore will follow closely in order to maintain sgd usd withina band.. the targeted interest rate of 4.5% is based on the assumption that inflation remains high. If we go into recession, high chance inflation rate will drop drastically and rate hike may even reverse.

IMO the biggest caveat will be recession. If the high interest rates causes a long drawn recession, it will essentially affect the tenants, and therefore our income. There may be a reset of certain parameters like the rentals. Not sure if the managers are willing to reduce their fees?

 

[TehSi99]

looks like those holding on to s-reits are in for a period of lower div and capital loss....10 to 20%.
that includes me.

15% to 20% on average now.

Few is 25%, even the good ones.

 

[TehSi99]

Once we enter into a recession, fed will revise the rate hike which Singapore will follow closely in order to maintain sgd usd withina band.. the targeted interest rate of 4.5% is based on the assumption that inflation remains high. If we go into recession, high chance inflation rate will drop drastically and rate hike may even reverse.

Question is how long will that be?

 

[mata_hippo]

buy in bit by bit for selected ones and fingers crossed