General S-REITs Discussion Thread

[sohguanh]

But each time u buy $100-$200... the rewards also won't be that big leh uncle.

So continue to buy lor as it goes up. This is then called DCA mah correct? My monies also go into SSB T-Bill bank FD so must expend a bit a bit cannot over-expend each time.

 

[Iyarash11]

keep till cloud open see moon bright

 

[sohguanh]

keep till cloud open see moon bright

You wait how long? Me some REIT is IPO until now leh never sell. I completed my non-blue chip REIT buy next is targeting blue chip REIT as they near 52 week low then some shoot up I never get a chance unless I buy up but I stingy investor so I search elsewhere dividend paying stocks.

 

[Sambuca78]

But it is ok besides individual REIT I also buy the CLR CFA SRT GRN all going up up and away. I start accumulating since Aug 2023 and posted a few times in this forum. 3 months of collecting will I be seeing the rewards soon? Hmmm....

Hmmm... I thinking if it is a good idea to use OA (eg: $100k) to buy CLR and keep for long term. Any comment ma?

 

[apriliasiao]

But each time u buy $100-$200... the rewards also won't be that big leh uncle.

u want reward big go play crypto loh.

 

[Mephist0pheLes]

Hmmm... I thinking if it is a good idea to use OA (eg: $100k) to buy CLR and keep for long term. Any comment ma?

nvr a good idea to bet on a single sector. but the ppl here will say got dividend can liao.

 

[sohguanh]

u want reward big go play crypto loh.

Wrong should be casino table play say big small be it physical or virtual in internet

 

[sohguanh]

Hmmm... I thinking if it is a good idea to use OA (eg: $100k) to buy CLR and keep for long term. Any comment ma?

I don't think I have the credentials to offer any comment. Some will say buy index lor. Some will say buy unit trust lor. Some will say buy SGX stock lor. Some will say buy TBill buy FD lor etc. You just need to know the investment must beat 2.5%

Just remember for stock, index aka etf listed in stock exchange and unit trust they can be delisted. This is the risk to take if one want higher returns over 2.5%

 

[snowcrabramyeon]

Hmmm... I thinking if it is a good idea to use OA (eg: $100k) to buy CLR and keep for long term. Any comment ma?

I'm not sure you can use OA to buy CLR leh?

 

[stanlawj]

H2 2024 may be the time when FCT REIT reports the worst DPU. Possibly also the same for the other REITS with major SGD loans.

Looking into the issue refinancing commercial loans, the rates from this website show 4%+.
https://www.mortgagewise.sg/mortgage-rates/?id=1&pw=62865#pw-tab2
SORA for Nov 2023 is 3.7%

But most REITS still report average borrowing costs for SGD loans below this.

Taking FCT as example: average borrowing cost is 3.8%, average loan duration is 2yrs.
Looking at SORA chart, the last cheap loans (sub 1% 3M SORA) was around Jun 2022 (0.86%).
https://housingloansg.com/hl/charts/sibor-sor-historical-chart

So add 2 years = Jun 2024.

 

[stanlawj]

However, what if SORA keeps going up and up throughout 2024 instead of flattening out at current 3.8% throughout 2024?
In addition, expenses and managements fees will continue to go up in 2024. This one is certain.

Then SREITS will have to refinance loans in 2024 at rates higher than what is visible now.
The uncertainty requires a discount of share price fair value to compensate for the event this risk manifests.

Don't judge current share price on today's fundamentals, but on tomorrow's fundamentals!

 

[stanlawj]

Jamie Dimon is selling his JPM shares. Like it or not, he said correctly in 2022 that Fed (J Powell) will raise rates many times, and also is saying rates can still go higher even after a pause.

Another first for JPMorgan CEO Jamie Dimon, selling shares of the bank he’s run for nearly 2 decades​

https://apnews.com/article/jpmorgan-dimon-bank-stock-8bf2366793488eed0c0b5327a7ad19a3#:~:text=Jamie Dimon will do something,a regulatory filing this week.

Jamie Dimon Warns Of Potential 6.25% Rate Hike From Fed Amid Sticky Inflation​

https://www.msn.com/en-us/money/new...ightening-will-rattle-the-markets/ar-AA1jga0K

 

[Sambuca78]

I'm not sure you can use OA to buy CLR leh?

Thanks, u r right, only 5 ETFs can be purchased by OA.

 

[DevilPlate]

Thanks, u r right, only 5 ETFs can be purchased by OA.

CFA can

 

[Iyarash11]

You wait how long? Me some REIT is IPO until now leh never sell. I completed my non-blue chip REIT buy next is targeting blue chip REIT as they near 52 week low then some shoot up I never get a chance unless I buy up but I stingy investor so I search elsewhere dividend paying stocks.

longest is since market crash because of covid19

 

[revhappy]

However, what if SORA keeps going up and up throughout 2024 instead of flattening out at current 3.8% throughout 2024?
In addition, expenses and managements fees will continue to go up in 2024. This one is certain.

Then SREITS will have to refinance loans in 2024 at rates higher than what is visible now.
The uncertainty requires a discount of share price fair value to compensate for the event this risk manifests.

Don't judge current share price on today's fundamentals, but on tomorrow's fundamentals!

I believe in stock markets 1st order analysis often doesn't work. So interest rates going up so REIT costs go up and REIT prices fall, is 1st order analysis.

As per this investopedia article there is positive correlation between interest rates and REIT performance

https://www.investopedia.com/articl...-reits-beneficial-during-highinterest-era.asp

 

[stanlawj]

I believe in stock markets 1st order analysis often doesn't work. So interest rates going up so REIT costs go up and REIT prices fall, is 1st order analysis.

As per this investopedia article there is positive correlation between interest rates and REIT performance

https://www.investopedia.com/articl...-reits-beneficial-during-highinterest-era.asp

So far, the 1st order effects are still true for the REITS price and the positive correlation has not manifested.

But when the share price doesn't fall much more given that the 1st order effects are supposed to be true, is the point in time we buy REITS because it means the bad future has been fully discounted. I'm watching for this (i.e. the negative correlation to break and turn positive).

Currently this is not true yet. And the UST yield curve hasn't un-invert yet (i.e. normalise or fully steepen)

 

[TehSi99]

A number of people think the bottom is not here yet and interest rate which has impact on DPU, will continue to stay high.

However, I think this could be the best time to buy in terms of DCA. Because you DCA when price is on possibly downtrend and not uptrend. Reits etf could be in fact a good choice now.

Everyone is entitled to his/ her views.

DYDD !!

 

[stanlawj]

A number of people think the bottom is not here yet and interest rate which has impact on DPU, will continue to stay high.

However, I think this could be the best time to buy in terms of DCA. Because you DCA when price is on possibly downtrend and not uptrend. Reits etf could be in fact a good choice now.

Everyone is entitled to his/ her views.

DYDD !!

It is also necessary to restrict to the best REITS. Not all actually will rebound the same amount. Some like China-related REITS just keep going down and down.

 

[sohguanh]

However, I think this could be the best time to buy in terms of DCA. Because you DCA when price is on possibly downtrend and not uptrend. Reits etf could be in fact a good choice now.

Everyone is entitled to his/ her views.

DYDD !!

Actually such view is generic not only apply to S-Reit. It apply equally well to normal stock,ETF be it listed on SGX or US etc stock exchange.

The key difference is REIT are mandated to give out monies up to 90% whereas for normal stock,ETF it is entirely optional. This key difference is again why REIT found favour for some investors like me.