General S-REITs Discussion Thread
- Thread starter Dividends Warrior
- Start date
REITs have served me well for the past 15 years, with DPU increasing and despite economic downturn, they remained viable, providing good dividends and appreciation over time. The REITs down and up in the past 2 years have reinforced that diversification is important in ensuring that our portfolio don't get badly hit by economic situations. The year end rally has papered over the cracks with my portfolio's value beefed up significantly in recent weeks. One mistake I made is that I was complacent that the low interest environment that we have had for the past decades will continue. Going forward, my new goal is to rebalance my portfolio to ensure that REITs will form a more sensible proportion and I am better prepared in different economic environment. This will be selling some of my REITs (may this mini rally continue to allow me to sell my over priced REITs :=)) and reinvest them to other industries. New funds earmarked for investment (from my dividends and salary) will also need to direct to other stocks in other industries. I may have to accept a lower DPU and growth but in return, at least a more balanced portfolio that hopefully will weather future economic changes better. My stock portfolio is very much entrenched in Real Estate (45%). Other significant classification breakdown of my individual stock portfolio: Financials (30%), Technology (12%), Energy, Utilities & Communication Services (11%). Remaining Healthcare, Consumer Staples, Consumer Discretionary, Industrial, Material in total formed less than 2%. My biggest challenge next year will be to find good stocks in other industries to reinvest. Lots of reading to shortlist these stocks at the mean time.
Just whack the blue chip SReit. When the downturn starts they are last to go down and first to move up which I miss landing some as was waiting for their 52 week low
DevilPlate
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i noticed some sampan reits like ESR and Lendlease also recovered fast and furious.
RIGHTS ISSUE, SHARE PLACEMENTS!!!
After Elite Commercial REIT, next is Parkway Life REIT.
https://www.businesstimes.com.sg/co...e-mount-elizabeth-novena-hospital-sac-capital
Time for Parkway Life Reit to acquire Mount Elizabeth Novena Hospital: SAC Capital
THE time has come for Parkway Life Real Estate Investment Trust (Reit) : C2PU -1.08% to proceed with the much-touted acquisition of Mount Elizabeth Novena Hospital, said SAC Capital on Friday (Jan 12).The hospital has established itself as a stable asset with consistent cash flow, so it has become “an ideal target for capital recycling” for its sponsor IHH Healthcare, said SAC analyst Matthias Chan.
“As IHH focuses on its growth strategy, to maximise balance sheet efficiency, the asset-light or capital-recycling model is likely to be brought to the fore,” he said. He added that the heartland hospital stands out in IHH’s portfolio for the way it synergises best with Parkway Life Reit’s assets.
In addition, Parkway Life Reit, whose major shareholder Parkway Holdings is an IHH unit, has the right of first refusal (ROFR) on the acquisition of Mount Elizabeth Novena Hospital.
As the estimated deal size of S$2.0 billion is comparable to Parkway Life Reit’s market capitalisation of S$2.2 billion, Chan expects the Reit to acquire a one-third stake of the hospital at a time over a five to six-year period, or at about S$650 million to S$700 million for each tranche.
He noted that the Reit will have a debt headroom of about S$370 million upon raising its gearing to 45 per cent from 36 per cent as at the end of last September.
He highlighted that the current capitalisation rate of Singapore hospitals, at around 5 per cent, compares favourably with the Reit’s annualised distribution yield of 4 per cent, based on its FY2023 H1 financials.
Given the new annual rent-review formula based on either adjusted hospital revenue or consumer price index (CPI) – to be applied from FY2026 – Chan sees favourable earnings growth from the Reit’s Singapore properties.
Parkway Life Reit stands to benefit from an annual rental upside of more than 3 per cent, based on the CPI formula and Singapore’s average 10-year CPI of 2.5 per cent. If the hospital’s revenue formula produces higher rent, the Reit’s earnings would get an even bigger boost. “In the meantime, till FY2026, rental increase has been locked in at 2 to 3 per cent per annum,” he added.
DevilPlate
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Below $3, i will buy some lor haha
Got meh? Those in my monitoring list chao chao still 15% higher than the average lows in Oct last yr leh...
dontwastetime
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Tiagong even 3% fed rate too high for S-Reits to sustain when their lock in rates expire ?
Anyone can confirm why ?
Anyone can confirm why ?
DevilPlate
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Sampan reits surely cannot tahan because they got beg to borrow at 5-6% (or even higher)
Whereas bluechip reits can still borrow at 3.5%
If cannot borrow, then have to issue Rights to raise money.
https://www.businesstimes.com.sg/co...ust-reports-999-retail-portfolio-occupancy-q1
I was in Nex recently (ate the chicken rice
- its better than their Vivo branch) and it was pretty busy!
I was in Nex recently (ate the chicken rice
- its better than their Vivo branch) and it was pretty busy!After losing money and bag holder since fed increase interest rates, i only get to learn not try investing in those smaller reits unless you knows clearly what you are investing in.
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I still waiting for the boats you mentioned to return leh....
The boats returned but didnt reach the jetty, then gostan today.
audiovideo
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Gona take advantage of the boat's forward backward pattern
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