General S-REITs Discussion Thread

[soneat]

Out of these 3, I like Keppel Pacific Oak more. Prime is own by private equity and I not comfortable with the sponsor. Manulife I think their gearing is 49% off my head. This is crazily high. Prime reit also at 49%. Keppel at 37.5%. I think likely I will take a small stake in Keppel.

Prime's gearing at 49%? When and where did you see this? It's gearing as of 3Q22 was 38.7%.
Manulife's gearing as of 3Q22 was 42.5% and it rose up to 49% as of 4Q22.

Manulife has always got the the worst track record (Do dilutive actions etc) out of these US office reits. Unless there's a buyout, it's going to be a tough ride for their existing shareholders.

Prime has got a couple of problematic properties - else its actually OK. Its share price plunged recently due to the scare from Manulife but it has recovered strongly during the past week.

KPO is doing OK, probably the better one among the 3.

 

[elvintay07]

Prime's gearing at 49%? When and where did you see this? It's gearing as of 3Q22 was 38.7%.
Manulife's gearing as of 3Q22 was 42.5% and it rose up to 49% as of 4Q22.

Manulife has always got the the worst track record (Do dilutive actions etc) out of these US office reits. Unless there's a buyout, it's going to be a tough ride for their existing shareholders.

Prime has got a couple of problematic properties - else its actually OK. Its share price plunged recently due to the scare from Manulife but it has recovered strongly during the past week.

KPO is doing OK, probably the better one among the 3.

https://www.businesstimes.com.sg/co...aring-limit-even-us-office-assets-face-waning

 

[soneat]

https://www.businesstimes.com.sg/co...aring-limit-even-us-office-assets-face-waning

I read the article before.
Where in the article did it confirm/suspect/deduce/state Prime's gearing hit 49%?

 

[elvintay07]

I read the article before.
Where in the article did it confirm/suspect/deduce/state Prime's gearing hit 49%?

Misread. Apologies.

 

[elvintay07]

Personally I think US reit will be ok unless recession is very very bad.

 

[direbmem]

Out of these 3, I like Keppel Pacific Oak more. Prime is own by private equity and I not comfortable with the sponsor. Manulife I think their gearing is 49% off my head. This is crazily high. Prime reit also at 49%. Keppel at 37.5%. I think likely I will take a small stake in Keppel.

Prime manager is linked to Keppel and SPH as well.

 

[DevilPlate]

I am currently studying both Keppel Pacific Oak and Manulife. Freaking > 10% dividend. This one huge fear. !

Their future DPU will fall. So maybe 7-8% yield based on current price for KPO

 

[direbmem]

Their future DPU will fall. So maybe 7-8% yield based on current price for KPO

Why will fall? In 2023?

 

[DevilPlate]

https://www.businessinsider.com/rem...wntowns-office-real-estate-apocalypse-2022-12https://www.nytimes.com/2022/11/17/business/office-buildings-real-estate-vacancy.html
Office reits outlook (US, EU, UK, Oz) in general is bleak. Perhaps SG offices still Ok.

Really need to deep dive into those US office reits to determine their office locations etc and study their demand/supply.

 

[elvintay07]

https://www.businessinsider.com/rem...wntowns-office-real-estate-apocalypse-2022-12https://www.nytimes.com/2022/11/17/business/office-buildings-real-estate-vacancy.html
Office reits outlook (US, EU, UK, Oz) in general is bleak. Perhaps SG offices still Ok.

Really need to deep dive into those US office reits to determine their office locations etc and study their demand/supply.

Why Singapore not affected? Our leadership not secured? Need to see every face in office?

 

[elvintay07]

Why Singapore not affected? Our leadership not secured? Need to see every face in office?

To be honest, today a lot of occupations can wfh or hybrid. Only few that cannot is pilot, surgeons. Police also can wfh these days if MFA allows

 

[TehSi99]

I am currently studying both Keppel Pacific Oak and Manulife. Freaking > 10% dividend. This one huge fear. !

I wonder how they manage to pay so much dividend.

Doesn't seems right. A red flag?

 

[limster]

To be honest, today a lot of occupations can wfh or hybrid. Only few that cannot is pilot, surgeons. Police also can wfh these days if MFA allows

Thats why I wonder why people so anxious to FIRE. If your job cannot WFH, just change to a job that can.

WFH days to me is what I imagine FIRE is like except I get paid a salary and maybe have to bring my laptop with me when I go to coffeeshop for morning breakfast kaya toast, and then to Starbucks.

 

[soneat]

I wonder how they manage to pay so much dividend.

Doesn't seems right. A red flag?

Red flag or not depends on what you know about the counter. What you know about the counter should not be based on "I feel", "I thought" or "I heard".

All I can say is people who are serious in investing would have done their homework and decide if its a counter worth getting (and at what price) and if so, the outlook. Out of the 3 US Office reits, the only one which I have 0 exposure is Manulife as it has not been properly managed (in my opinion) right from the beginning.

As shared earlier in one of the post earlier, I accumulated 3 counters last year while no one is touching (or dare to touch), one of which is Prime.

 

[soneat]

Thats why I wonder why people so anxious to FIRE. If your job cannot WFH, just change to a job that can.

WFH days to me is what I imagine FIRE is like except I get paid a salary and maybe have to bring my laptop with me when I go to coffeeshop for morning breakfast kaya toast, and then to Starbucks.

I feel FIRE is something that is elusive to most people and the thought of being able to have income while not having to work, is a dream.

For someone like me who has FIRE for 2+ years and re-entered the workforce (by choice), I find that work is not as stressful (despite having a far more stressful role) as I know I have a choice. Oh yes, WFH helps as well but don't have luxury to go for 2 hour lunches la....

 

[homer123]

 

[TehSi99]

Thats why I wonder why people so anxious to FIRE. If your job cannot WFH, just change to a job that can.

WFH days to me is what I imagine FIRE is like except I get paid a salary and maybe have to bring my laptop with me when I go to coffeeshop for morning breakfast kaya toast, and then to Starbucks.

Red flag or not depends on what you know about the counter. What you know about the counter should not be based on "I feel", "I thought" or "I heard".

All I can say is people who are serious in investing would have done their homework and decide if its a counter worth getting (and at what price) and if so, the outlook. Out of the 3 US Office reits, the only one which I have 0 exposure is Manulife as it has not been properly managed (in my opinion) right from the beginning.

As shared earlier in one of the post earlier, I accumulated 3 counters last year while no one is touching (or dare to touch), one of which is Prime.

I understand what you are saying.
The thing i do not really understand is why KPO can pay so high dividends when you look at their other metrics.

 

[TehSi99]

Sasseur has recovered quite abit.

Seems still no updates on their refinancing.

 

[direbmem]

I understand what you are saying.
The thing i do not really understand is why KPO can pay so high dividends when you look at their other metrics.

What other metrics? I just bought some KPO yesterday..

 

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