General S-REITs Discussion Thread

[sohguanh]

Got meh? Most of the REITS that cui the past few months are still about 10% above the lowest cui level leh..

That is true indeed especially the bluechip REIT.

 

[Shion]

MAS proposes relaxed leverage requirements for S-Reits​

https://www.straitstimes.com/business/mas-proposes-relaxed-leverage-requirements-for-s-reits

SINGAPORE – The Monetary Authority of Singapore (MAS) on July 24 published a consultation paper proposing to simplify leverage requirements for all real estate investment trusts (Reits).

Under the proposal, all Reits will be subject to a minimum interest coverage ratio (ICR) threshold of 1.5 times, and an aggregate leverage limit of 50 per cent.

Commenting on the proposed ICR, the regulator said: “This underscores the responsibility of Reit managers in ensuring that Reits can adequately meet their interest payments.”

Currently, the ICR requirement of 2.5 times is to be met only by Reits which intend to increase their aggregate leverage from 45 per cent to 50 per cent.

The ICR and aggregate leverage work complementarily to indicate a Reit’s financial strength, said MAS.

The ICR is a measure of how well a company can repay the interest on its debt, while the aggregate leverage refers to the ratio of a Reit’s total debt to total assets. The aggregate leverage, also known as gearing ratio, indicates a company’s ability to take on more debt.

To simplify the requirements, MAS is proposing that a single aggregate leverage limit of 50 per cent apply to all Reits going forward. Currently, Reits should not have an aggregate leverage exceeding 45 per cent of the funds’ deposited property.

“A leverage limit of 50 per cent, together with the ICR floor, will continue to foster prudent borrowing by Reits,” said the authority.

The proposals, which are available in a consultation paper published on MAS’ website, come as the high interest rate environment has been punishing for locally listed Reits amid rising finance costs and valuations coming under pressure.

MAS is also proposing that Reits perform and disclose sensitivity analyses on the impact of changes in earnings before interest, taxes, depreciation, and amortisation, as well as interest rates on their ICRs.

This disclosure should be made in their interim and financial results and annual reports to provide investors with information on how a Reit’s credit profile could be affected by changes in market conditions, said MAS.

The full consultation paper is available on MAS’ website. Interested parties can submit their views on the proposals online by Aug 23, 2024. THE BUSINESS TIMES

 

[addict951]

FCT’s latest qtr’s result rike good hor??
Occupancy up everything up!

 

[DevilPlate]

FCT’s latest qtr’s result rike good hor??
Occupancy up everything up!

But MLT total cui

 

[audiovideo]

MLT cui is it becos ccp cmi liao

 

[stanlawj]

JTC data shows the business park vacancy rate declining slightly to 21.7% in 2Q2024 from 22% the previous quarter. Tricia Song, CBRE head of research for Southeast Asia, highlights the "patchy" performance of business parks, with the one-north average vacancy rate at 9% in 2Q2024, about 30% at Changi Business Park in the east, and close to 40% at International Business Park in Jurong in the west.

https://www.edgeprop.sg/property-ne...ndustrial-rents-growth-slowing-1-q-o-q-2q2024

 

[TehSi99]

Those with HK and China assets are cui.

 

[d5dude]

Those with HK and China assets are cui.

https://forums.hardwarezone.com.sg/threads/general-s-reits-discussion-thread.4313167/post-152897506

Been going on for a while and it could get worse if the CCP doesnt do more to alleviate the real estate crisis in China.

 

[TehSi99]

CFA keeps dropping slowly after 2 days rally.
Hope this is ending .

 

[homer123]

S-REITs Mid-Year Outlook: Approaching A Turning Point?​

 

[TehSi99]

S-REITs Mid-Year Outlook: Approaching A Turning Point?​

Talks about a turning point long time liao.
High interest rates will continue to have an impact on DPU.

 

[sohguanh]

My own way of investing is if you keep seeing the overall trend is dropping for say continuous for 6 months, time to stop it maybe a bottomless pit. I did that to my China investment and will do same for SReit and focus my monies elsewhere.

 

[DevilPlate]

It could be the best years to DCA into reits etf for those accumulating wealth

Js remember your purpose of buying reits is to collect passive income.

 

[TehSi99]

It could be the best years to DCA into reits etf for those accumulating wealth

Js remember your purpose of buying reits is to collect passive income.

Yes, that could be the best strategy.
Two weeks of downtrend after 2 days big green candles is unbelievable.

 

[DevilPlate]

Yes, that could be the best strategy.
Two weeks of downtrend after 2 days big green candles is unbelievable.

good deal for buyers who are accumulating.

Remember SP500 also suffered few long term secular bear market which was an excellent period for those who DCA and accumulate.

However for those in their 50s or older, have to be very careful

 

[TehSi99]

good deal for buyers who are accumulating.

Remember SP500 also suffered few long term secular bear market which was an excellent period for those who DCA and accumulate.

However for those in their 50s or older, have to be very careful

There is always risk in investing.
I understand your point being careful but no one has crystal ball.
I foresee more investments in CFA and CLR when CPF SA accounts are closed for those hitting 55 next year.

 

[stanlawj]

CFA keeps dropping slowly after 2 days rally.
Hope this is ending .

0.25% rate cut priced in within the next 3 months by US bond market.
Frasers Centrepoint Trust now breaking out of consolidation wedge.

All signs pointing to a SREIT rally to continue!

 

[d5dude]

There is always risk in investing.
I understand your point being careful but no one has crystal ball.
I foresee more investments in CFA and CLR when CPF SA accounts are closed for those hitting 55 next year.

I'm not so sure that CLR and CFA are good vehicles for investing in reits. These ETFs are max weighted at 10% but the dispersion within reits is massive, the ETF manager has to sell the few winners to fund the many losers in the portfolio, this will likely result in sub-par performance over the long run.

 

[boliao123]

I'm not so sure that CLR and CFA are good vehicles for investing in reits. These ETFs are max weighted at 10% but the dispersion within reits is massive, the ETF manager has to sell the few winners to fund the many losers in the portfolio, this will likely result in sub-par performance over the long run.

Those are index etf and not actively-managed etfs u know right?

 

[limster]

I'm not so sure that CLR and CFA are good vehicles for investing in reits. These ETFs are max weighted at 10% but the dispersion within reits is massive, the ETF manager has to sell the few winners to fund the many losers in the portfolio, this will likely result in sub-par performance over the long run.

Its simple enough to buy my 10 favourite REITs.

REIT ETFs hold REITs that I have no interest in buying. Why pay the expense ratio for something I don't want?