General S-REITs Discussion Thread

[DriftKing]

gona be sustained rally or puncture again few days later lolol

Not sure man. Sold off before todays rally, thought there's another drop this week.

Any chance of recurrence of post 2020 prices?

 

[DevilPlate]

Yes most likely.
I checked, the individual reits have big volumes! FCT, CICT.
Looks like targeted buying in certain reits.

Usually blue chip reits up first followed by sampan lolol

 

[addict951]

Wah, bbs transferring from banks to reits riao

 

[thretiredDad]

Not sure man. Sold off before todays rally, thought there's another drop this week.

Any chance of recurrence of post 2020 prices?

I missed
cict, fct,

 

[d5dude]

Sampan reits like AIMS issued 5% bond
But its perp so still quite low

Yea its very low. For better quality issuers like Mapletree, Frasers etc the yield for a 5-7 yr bond is barely 3%.

 

[ask_yip]

finally bull run for REITs?

hope is not fake fire this time

 

[addict951]

Rook at Northpoint REIT & Capmall!!!

 

[TehSi99]

Yes most likely.
I checked, the individual reits have big volumes! FCT, CICT.
Looks like targeted buying in certain reits.

Only few certain reits have high volume.

 

[Nofear40]

‘Disappointing’: Smaller S-Reits could lose out due to exclusion from GIP application criteria
https://www.businesstimes.com.sg/co...the “family,exclude Reits and business trusts.

 

[Dividends Warrior]

Rook at Northpoint REIT & Capmall!!!

Rook at Keppel DC & PLife!!!

 

[TehSi99]

Yes most likely.
I checked, the individual reits have big volumes! FCT, CICT.
Looks like targeted buying in certain reits.

Yes. Only certain reits.

 

[thretiredDad]

from DBS

Window to jump back in

Rally in the S-REITs could continue on the back of more “defensive” positioning given a subdued macro backdrop, weak inflation print in the US
> Current valuations at 0.83x P/B still attractive and historical observations yielded generally positive returns when compared to forward 1-year returns
> S-REITs have quietly outperformed SG-Banks, yield differential at +1 SD, suggest room to normalise further
> Preferred allocations and picks of *FCT, CICT, KREIT, MINT, MLT* and Plife supported by solid fundamentals even if macro conditions changes

*What has happened?*
Sentiment in the SREITs has seen a marked change in recent times as worries about US & Global growth outlook driving down benchmark yields and an increased allocations into the safe havens instruments like REITs in the near term. The latest lower than expected inflation print probably add fuel to expectations on the FED’s next move. We reiterate our view in the report (REITs : Winners in a higher for longer environment) that valuations are attractive at 0.8x P/B , FY25F yields or 6.2pxt coupled with early indications from refinancing activities by S-REITs are showing the start of a downtrend in interest rates. While S-REITs had a field day - up between 2-4pct, names that were sold off more YTD saw a stronger rebound in prices.

*Our view*
Our conversations with investors over the past few days were generally constructive with clients keen to get back in, though we still sense a level of apprehension on whether the current rally can continue. Nevertheless, we have previously postulated that the SREITs has "little expectations" priced in and believe that if growth concerns continues, expectations of a more supportive FED will mean more inflows into the REITs sector. Given the still uncertain macro outlook, our preferred allocation remains Retail > Industrial > Office > Hotels. Top picks are : CICT, FCT, KREIT, MINT, MLT and Plife.

*Three Frequently asked questions by investors:*

*Question 1: Is the rally sustainable*
Investors have remembered the short-lived rallies in the S-REITs back in 4Q23 and 4Q24 where a steep rally followed by a correction in prices, we believe that this rally should have more legs, especially when (I) portfolio interest rates have shown signs to have "peaked" and (II) a more broad base and meaningful refinancing savings is upon us (from 2026) and within investment horizons.

We are very comfortable to be adding into the REITs at 0.8x P/B as historical analysis indicate that when compared against 1-yr forward returns indicated that a majority of the observations yielded a positive return (with the exception of GFC, COVID periods.

*Question 2: How will our allocation preference change in the face of a recession?*
We remain comfortable with our sectorial picks anchored around Retail and Industrial (Logistics, data-centers) and healthcare which income visibility remain undisrupted even in a scenario of recessionary economic outlook.

*Question 3: Is the "buy banks , sell S-REITs " pair trade over ?*
We had previously questioned the duration of this trade in our report Banks vs REITs: Turn of the tide and question on the timing and duration of the last leg of this rally. We observed that our sector picks of FCT, CICT, Plife has outperformed the SG banks. However, with the SG banks raising their dividends (with capital returns) and still offer decent yields of > 6.0%, we do not see investors shying away form them anytime soon.

Nevertheless, it's important to watch this space as yield differential are in favour of adding more into REITs, in our opinion.

 

[DevilPlate]

Sreits a safe haven asset is laughable lolol

 

[60Remajust]

managed to buy >400k CFA liao, probably going to stop

time to reap from my mini CPF life payout from this reit lol

 

[Asy1um]

I missed
cict, fct,

first time caught the right timing
Bought 170000 shares cict @ 1.92,
53600 shares fct @ 2.06,
Along with existing holdings, very green

 

[thretiredDad]

first time caught the right timing
Bought 170000 shares cict @ 1.92,
53600 shares fct @ 2.06,
Along with existing holdings, very green

Well done

 

[60Remajust]

first time caught the right timing
Bought 170000 shares cict @ 1.92,
53600 shares fct @ 2.06,
Along with existing holdings, very green

Fantastic. Let’s hope it goes up from here. Hehe

Ur passive dividend must be fantastic.
Got $100k annual?

 

[Asy1um]

Fantastic. Let’s hope it goes up from here. Hehe

Ur passive dividend must be fantastic.
Got $100k annual?

No, how you derive that number?
currently holding paragon, cict, fct, estimated around $680k, around 30k annual based on 5% or so.

cict recently dividend seems on the lower side, anyone knows why?

 

[60Remajust]

No, how you derive that number?
currently holding paragon, cict, fct, estimated around $680k, around 30k annual based on 5% or so.

cict recently dividend seems on the lower side, anyone knows why?

I assumed since u pump so much into cict u would do the same for a few other REITs.

30k passive income in perpetuality is sweet

 

[lunafan]

Sreits a safe haven asset is laughable lolol

why is it laughable? The bluechip reits are all so solid, with steady DPU payout over the last decade