General S-REITs Discussion Thread

[stanlawj]

SREITS,.... RIP.

All those REITS aggressively buying more properties on loan... RIP.

UST 10-yr bond yields are ripping up!!!!

Let's see whether those managers can challenge the US Treasury bonds.

 

[ctan84]

SREITS,.... RIP.

All those REITS aggressively buying more properties on loan... RIP.

UST 10-yr bond yields are ripping up!!!!

Let's see whether those managers can challenge the US Treasury bonds.

Simi RIP.... from recent lows, SREITS now chao chao 10% up liao. You miss the boat dun salty lah...

 

[stanlawj]

Simi RIP.... from recent lows, SREITS now chao chao 10% up liao. You miss the boat dun salty lah...

I'm talking about the future.

Lower highs, and then lower lows?

 

[DevilPlate]

I'm talking about the future.

Bluechip Sreits still able to borrow at 3.5 to 3.8%

Relax relax....

 

[ctan84]

Bluechip Sreits still able to borrow at 3.5 to 3.8%

Relax relax....

That guy 4ever waiting for his Fraser reit to reach $1.90 then he will buy

 

[stanlawj]

The problem lies with managers. They keep stacking on new debt with higher interests rate and issuing more shares.

That's all they know. Making the AUM larger, increasing performance fees with inflation.

Zero discussion about the impact of US Treasury bonds on their REITS financing. Only rosy long-term outlooks.

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

 

[limster]

The problem lies with managers. They keep stacking on new debt with higher interests rate and issuing more shares.

That's all they know. Making the AUM larger, increasing performance fees with inflation.

Zero discussion about the impact of US Treasury bonds on their REITS financing. Only rosy long-term outlooks.

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

100% agree that management quality matters. This is rarely covered by analysts but if you read the annual reports you can get a sensing of the quality of the REIT senior management and board. You can also ask your network of contacts about these people as well.

 

[TehSi99]

100% agree that management quality matters. This is rarely covered by analysts but if you read the annual reports you can get a sensing of the quality of the REIT senior management and board. You can also ask your network of contacts about these people as well.

The other thing that is important now is the loan expiry profile. Need some digging to see this information.
Those reits with recent refinancing are hit harder on the DPU.

 

[TehSi99]

The problem lies with managers. They keep stacking on new debt with higher interests rate and issuing more shares.

That's all they know. Making the AUM larger, increasing performance fees with inflation.

Zero discussion about the impact of US Treasury bonds on their REITS financing. Only rosy long-term outlooks.

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

Managers are paid commission for selling and buying properties.

 

[ctan84]

The problem lies with managers. They keep stacking on new debt with higher interests rate and issuing more shares.

That's all they know. Making the AUM larger, increasing performance fees with inflation.

Zero discussion about the impact of US Treasury bonds on their REITS financing. Only rosy long-term outlooks.

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

Been hearing you kpkp since last yr on SGreits, so I'm still waiting to see when that 30-40% drop will happne ok

 

[DevilPlate]

Been hearing you kpkp since last yr on SGreits, so I'm still waiting to see when that 30-40% drop will happne ok

It may happen IF 2nd wave inflation strikes....imo 20% possibility.

 

[TehSi99]

It may happen IF 2nd wave inflation strikes....imo 20% possibility.

On paper, it could be the right time to buy reits as this could be the time of highest interest rate. However, they cant kill the inflation monster, interest rate may continue to remain high or less high for longer time. That would have an impact on DPU as the loans continue to be refinance.

 

[DevilPlate]

On paper, it could be the right time to buy reits as this could be the time of highest interest rate. However, they cant kill the inflation monster, interest rate may continue to remain high or less high for longer time. That would have an impact on DPU as the loans continue to be refinance.

js check bluechip reits ave interest cost…..if close to 4% liao, then shd stabilise liao….

sampan reits hard to say…. lol

 

[QinWei]

I'm talking about the future.

Lower highs, and then lower lows?

that i agree w Stan

a low at this point doesnt mean a low point forever

tmr shall be EVEN lower

esp for reits





that i dont know about the woes, but this is truly how i felt

Been hearing you kpkp since last yr on SGreits, so I'm still waiting to see when that 30-40% drop will happne ok

 

[ctan84]

that i agree w Stan

a low at this point doesnt mean a low point forever

tmr shall be EVEN lower

esp for reits





that i dont know about the woes, but this is truly how i felt

Yes, I waiting to buy Keppel Oak at 10 cents

 

[QinWei]

keppac ? indeed it is the best amongst all the USD-related

Yes, I waiting to buy Keppel Oak at 10 cents

not many see it !!!!!!!!!!!!! although it .....is down by alot and not paying divs

 

[snowcrabramyeon]

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

https://www.drwealth.com/these-6-reits-withheld-dividends-what-went-wrong/

 

[sohguanh]

Some reit manager opt for shares to get their due fees. So do you all see them as align with reit vision to be with it up and down? Wonder why they don't take cold hard cash for their fees.

 

[lunafan]

The problem lies with managers. They keep stacking on new debt with higher interests rate and issuing more shares.

That's all they know. Making the AUM larger, increasing performance fees with inflation.

Zero discussion about the impact of US Treasury bonds on their REITS financing. Only rosy long-term outlooks.

Tell me a manager who is willing to be honest to say: OUR FINANCE COSTS WILL KEEP RISING AND RISING. HENCE WE ARE CUTTING ALL DIVIDENDS TO PAY DOWN DEBT AS FAST AS POSSIBLE.

Not sure why you fear the financing cost so much.
Many reits already stated in their last few investor presentation slides, any further rate hike will only hit DPU like 10-20%
Very unlikely for fed to hike rate further..... so assuming fed maintain current rates for another 1-2 year, don't see any major issue as financing cost will stabilise
Cutting dividend to pay down the debt is not how reits function.
If they really need to reduce financing cost they will sell overvalued assets to reduce gearing

Keppel reit made the bold move to buy more assets instead of selling assets, which means their current financing cost is sustainable

 

[weng0202]

Not sure why you fear the financing cost so much.
Many reits already stated in their last few investor presentation slides, any further rate hike will only hit DPU like 10-20%
Very unlikely for fed to hike rate further..... so assuming fed maintain current rates for another 1-2 year, don't see any major issue as financing cost will stabilise
Cutting dividend to pay down the debt is not how reits function.
If they really need to reduce financing cost they will sell overvalued assets to reduce gearing

Keppel reit made the bold move to buy more assets instead of selling assets, which means their current financing cost is sustainable

And also depends on how much of the debt is on fixed rates. Not all the debt requires refinancing. Anyway now is just wait for the rate cuts to start, my guess probably towards end of the year.