General S-REITs Discussion Thread

[TehSi99]

well, CFA contains sampan reits... what to do?

that why i also buy CICT, Mapletree Commercial, Starhill Global, and more recently Parkway Life and Frasers Commercial... though some may also say my individual picks also have sampan reit(s)...

Buy at low is good enough.

 

[lunafan]

Now only i know how bad sreit is doing… lol..
Kinda weird moo moo has the adjusted price by default. But learnt something new thanks to u..

Quite the opposite
Including the dividends show you how profitable sreit has actually been, as many people plainly look at stock price and assume it’s stagnant

 

[Shion]

Higher rates, higher risk: Are Singapore REITs still worth buying?​

https://www.straitstimes.com/busine...singapore-reits-still-worth-buying?ref=latest

SINGAPORE – Singapore’s $100 billion REIT market is expected to remain resilient despite heightened interest rate volatility under a new US Federal Reserve chairman, although analysts say refinements to the REIT framework and the introduction of new listed real estate investment vehicles could strengthen its long-term appeal.

That will be music to the ears of investors like David Ong, who has grown concerned about the slowing returns from his real estate investment trust (REIT) investments in recent years.

“REITs are stable in the long run but growth seems really slow,” said the 36-year-old, who considers himself sufficiently knowledgeable about investments.

Ong, who works in the healthcare industry and maintains a diversified portfolio, is worried that Singapore REITs could be hit badly if interest rates were to rise, with rumours of a hike already swirling on Wall Street.

Still, he has no plans to exit the asset class, saying it remains an accessible way to gain exposure to the property market without having to put down a large sum of money.

Despite market expectations that the Fed would cut interest rates to support a slowing economy, the central bank kept rates unchanged at 3.5 per cent to 3.75 per cent at its June meeting.

It was the Fed’s first meeting under new chairman Kevin Warsh, whose leadership is set to strike a different tone than predecessor Jerome Powell.

Before Warsh assumed the role, the Fed had commonly issued “forward guidance”, where it communicated its expectations for the economy and the likely path of interest rates.

But Warsh has argued that this is excessive communication because it creates an environment where the market expects too much from the Fed, leading investors to treat its projections as firm commitments rather than conditional guidance.

Without further guidance from the Fed, the market may now face higher volatility, leading investors to seek greater compensation for taking on added risk, analysts said.

The market is already expecting greater volatility ahead of the Fed’s meeting on July 28 and 29.

While Warsh had said on July 1 that inflation risks have started to come down, minutes from the June meeting revealed that officials are largely in favour of a rate hike to bring inflation down to a target of 2 per cent.

Impact on S-REITs​

The shifts in the new Fed chair’s approach to monetary policy could have an impact on the Singapore REIT market.

Singapore hosts the largest REIT market in Asia, excluding Japan, comprising around 40 trusts with close to $100 billion in market capitalisation, and it is an important component of the Singapore stock market.

But REITs are also sensitive to changes in interest rates because they rely on debt to finance their property portfolios.

Higher borrowing costs can reduce the income available for distribution to investors, who often compare REIT dividend yields with government bond yields.

This could also affect the value of the underlying properties owned by a REIT, said EY’s Singapore head of assurance, Lee Wei Hock.

Should property valuations decline over time, REITs could face greater difficulty refinancing loans or raising capital to acquire new assets, Lee said.

Maybank Securities equity analyst Krishna Guha said REITs that carry more debt, have a larger share of floating-rate borrowings and face near-term refinancing needs are likely to be hit harder if economic growth slows and fixed leases prevent them from increasing rents.

This can limit growth.

Greater interest rate volatility can therefore reduce the appeal of REITs, making the asset class less attractive to investors.

This was the case for 38-year-old engineer Marcus Goh, who stopped investing in REITs two years ago after noting that his capital losses outweighed the dividends.

“It was nice to see the dividends at first, but there was little to no capital appreciation in my investments,” said Goh, who is now focused primarily on stocks and is not considering a return to investing in REITs for now.

Still resiilent​

Analysts The Straits Times spoke to did not appear overly concerned, though.

OCBC Bank’s head of equity research, Carmen Lee, noted that REITs have fallen from their five-year high in 2021 and have not returned to those levels, reflecting that current valuations already take into account the impact of higher interest rates.

This suggests limited downside from current levels. Singapore REITs are projected to yield around 5.9 per cent in 2026, similar to the previous year, before rising to 6.1 per cent in 2027.

The REIT market is still stable and a broad-based sector sell-off is unlikely, said CGS International research analyst Li Jialin.

She noted that net fund flows into REITs – including institutional and retail flows – since the start of 2026 have been marginally negative, suggesting that the sector is not crowded enough to trigger a large sell-off.

Singapore REITs also remain reasonably priced after seeing a drop in the wake of the Iran conflict, and their fundamentals remain intact.

“REITs with prudent balance sheet metrics are better positioned, including those with manageable borrowings, strong fixed-rate protection, and well-staggered debt maturities,” Li said.

Other analysts pointed out that Singapore’s REIT market has benefited from a period of easing borrowing costs following the sharp interest rate increases of 2022 and 2023.

During that period, many REITs saw their valuations fall and distributions come under pressure as financing costs rose.

Refining the REIT asset class​

Still, with rates likely to stay volatile going forward, some refinements will therefore be needed to ensure that the Singapore REIT model remains competitive and relevant, said EY’s Lee.

Current gearing limits could be reviewed and recalibrated to reflect the differing risk profiles of asset classes and geographic markets, he noted.

Distribution policies could also be made more flexible, allowing REITs to retain a greater proportion of earnings to fund growth initiatives.

Given geopolitical developments and changes in Fed policy, it would also be timely for the Singapore Exchange to explore a new cornerstone asset class beyond REITs to support the next phase of its growth, Lee added.

One possibility is the development of more “evolved and sophisticated” REIT-like structures with larger market capitalisations that are aligned with the investment thresholds of institutional investors.

These products could continue to offer long-term value while taking on a more calibrated exposure to development and investment risks.

They would also build on Singapore's strengths as a wealth management hub, underpinned by political stability and a robust regulatory framework that continue to attract family offices, hedge funds and wealthy investors.

In an environment with less policy signalling from the Fed, investors are likely to place even greater emphasis on company fundamentals, balance sheet resilience and capital allocation discipline, noted SGX Group’s market strategist, Geoff Howie.

He added that the REIT market has broadened beyond traditional property exposure into sectors linked to long-term structural themes such as digitalisation, healthcare demand, e-commerce logistics and data infrastructure.

The market remains one of the most liquid, well-covered and actively traded segments of the Singapore market.

OCBC’s Lee said the sector could be strengthened with more data centre REITs since more such assets are being built in the region, including in Malaysia and Thailand.

For now, some of the larger Singapore REITs with wider holdings are more favourable, such as CapitaLand Ascendas REIT and CapitaLand Integrated Commercial Trust, which comprise the real estate group’s industrial, office space and retail assets.

Other REITs include Parkway Life REIT – with Mount Elizabeth and Gleneagles hospitals in its portfolio – and Keppel DC REIT, the real asset manager’s data centre investment play.

Maybank’s Guha cited Centurion Accommodation REIT, CDL Hospitality Trusts and Lendlease Global Commercial REIT as defensive and growth picks that offer around 10 per cent yield and growth, deriving most of their income from Singapore while trading below book value.

Mapletree Logistics Trust could also see growth through portfolio repositioning and less intense headwinds in China.

While returns may be modest over the near term, Singapore REITs are still expected to deliver returns above inflation and offer higher yields than comparable government bonds, Guha said.

Their returns also tend to move independently of other asset classes, making them a useful way for investors to diversify their portfolios, he added.

 

[sohguanh]

Higher rates, higher risk: Are Singapore REITs still worth buying?​

https://www.straitstimes.com/busine...singapore-reits-still-worth-buying?ref=latest

SINGAPORE – Singapore’s $100 billion REIT market is expected to remain resilient despite heightened interest rate volatility under a new US Federal Reserve chairman, although analysts say refinements to the REIT framework and the introduction of new listed real estate investment vehicles could strengthen its long-term appeal.

That will be music to the ears of investors like David Ong, who has grown concerned about the slowing returns from his real estate investment trust (REIT) investments in recent years.

“REITs are stable in the long run but growth seems really slow,” said the 36-year-old, who considers himself sufficiently knowledgeable about investments.

Ong, who works in the healthcare industry and maintains a diversified portfolio, is worried that Singapore REITs could be hit badly if interest rates were to rise, with rumours of a hike already swirling on Wall Street.

Still, he has no plans to exit the asset class, saying it remains an accessible way to gain exposure to the property market without having to put down a large sum of money.

Despite market expectations that the Fed would cut interest rates to support a slowing economy, the central bank kept rates unchanged at 3.5 per cent to 3.75 per cent at its June meeting.

It was the Fed’s first meeting under new chairman Kevin Warsh, whose leadership is set to strike a different tone than predecessor Jerome Powell.

Before Warsh assumed the role, the Fed had commonly issued “forward guidance”, where it communicated its expectations for the economy and the likely path of interest rates.

But Warsh has argued that this is excessive communication because it creates an environment where the market expects too much from the Fed, leading investors to treat its projections as firm commitments rather than conditional guidance.

Without further guidance from the Fed, the market may now face higher volatility, leading investors to seek greater compensation for taking on added risk, analysts said.

The market is already expecting greater volatility ahead of the Fed’s meeting on July 28 and 29.

While Warsh had said on July 1 that inflation risks have started to come down, minutes from the June meeting revealed that officials are largely in favour of a rate hike to bring inflation down to a target of 2 per cent.

Impact on S-REITs​

The shifts in the new Fed chair’s approach to monetary policy could have an impact on the Singapore REIT market.

Singapore hosts the largest REIT market in Asia, excluding Japan, comprising around 40 trusts with close to $100 billion in market capitalisation, and it is an important component of the Singapore stock market.

But REITs are also sensitive to changes in interest rates because they rely on debt to finance their property portfolios.

Higher borrowing costs can reduce the income available for distribution to investors, who often compare REIT dividend yields with government bond yields.

This could also affect the value of the underlying properties owned by a REIT, said EY’s Singapore head of assurance, Lee Wei Hock.

Should property valuations decline over time, REITs could face greater difficulty refinancing loans or raising capital to acquire new assets, Lee said.

Maybank Securities equity analyst Krishna Guha said REITs that carry more debt, have a larger share of floating-rate borrowings and face near-term refinancing needs are likely to be hit harder if economic growth slows and fixed leases prevent them from increasing rents.

This can limit growth.

Greater interest rate volatility can therefore reduce the appeal of REITs, making the asset class less attractive to investors.

This was the case for 38-year-old engineer Marcus Goh, who stopped investing in REITs two years ago after noting that his capital losses outweighed the dividends.

“It was nice to see the dividends at first, but there was little to no capital appreciation in my investments,” said Goh, who is now focused primarily on stocks and is not considering a return to investing in REITs for now.

Still resiilent​

Analysts The Straits Times spoke to did not appear overly concerned, though.

OCBC Bank’s head of equity research, Carmen Lee, noted that REITs have fallen from their five-year high in 2021 and have not returned to those levels, reflecting that current valuations already take into account the impact of higher interest rates.

This suggests limited downside from current levels. Singapore REITs are projected to yield around 5.9 per cent in 2026, similar to the previous year, before rising to 6.1 per cent in 2027.

The REIT market is still stable and a broad-based sector sell-off is unlikely, said CGS International research analyst Li Jialin.

She noted that net fund flows into REITs – including institutional and retail flows – since the start of 2026 have been marginally negative, suggesting that the sector is not crowded enough to trigger a large sell-off.

Singapore REITs also remain reasonably priced after seeing a drop in the wake of the Iran conflict, and their fundamentals remain intact.

“REITs with prudent balance sheet metrics are better positioned, including those with manageable borrowings, strong fixed-rate protection, and well-staggered debt maturities,” Li said.

Other analysts pointed out that Singapore’s REIT market has benefited from a period of easing borrowing costs following the sharp interest rate increases of 2022 and 2023.

During that period, many REITs saw their valuations fall and distributions come under pressure as financing costs rose.

Refining the REIT asset class​

Still, with rates likely to stay volatile going forward, some refinements will therefore be needed to ensure that the Singapore REIT model remains competitive and relevant, said EY’s Lee.

Current gearing limits could be reviewed and recalibrated to reflect the differing risk profiles of asset classes and geographic markets, he noted.

Distribution policies could also be made more flexible, allowing REITs to retain a greater proportion of earnings to fund growth initiatives.

Given geopolitical developments and changes in Fed policy, it would also be timely for the Singapore Exchange to explore a new cornerstone asset class beyond REITs to support the next phase of its growth, Lee added.

One possibility is the development of more “evolved and sophisticated” REIT-like structures with larger market capitalisations that are aligned with the investment thresholds of institutional investors.

These products could continue to offer long-term value while taking on a more calibrated exposure to development and investment risks.

They would also build on Singapore's strengths as a wealth management hub, underpinned by political stability and a robust regulatory framework that continue to attract family offices, hedge funds and wealthy investors.

In an environment with less policy signalling from the Fed, investors are likely to place even greater emphasis on company fundamentals, balance sheet resilience and capital allocation discipline, noted SGX Group’s market strategist, Geoff Howie.

He added that the REIT market has broadened beyond traditional property exposure into sectors linked to long-term structural themes such as digitalisation, healthcare demand, e-commerce logistics and data infrastructure.

The market remains one of the most liquid, well-covered and actively traded segments of the Singapore market.

OCBC’s Lee said the sector could be strengthened with more data centre REITs since more such assets are being built in the region, including in Malaysia and Thailand.

For now, some of the larger Singapore REITs with wider holdings are more favourable, such as CapitaLand Ascendas REIT and CapitaLand Integrated Commercial Trust, which comprise the real estate group’s industrial, office space and retail assets.

Other REITs include Parkway Life REIT – with Mount Elizabeth and Gleneagles hospitals in its portfolio – and Keppel DC REIT, the real asset manager’s data centre investment play.

Maybank’s Guha cited Centurion Accommodation REIT, CDL Hospitality Trusts and Lendlease Global Commercial REIT as defensive and growth picks that offer around 10 per cent yield and growth, deriving most of their income from Singapore while trading below book value.

Mapletree Logistics Trust could also see growth through portfolio repositioning and less intense headwinds in China.

While returns may be modest over the near term, Singapore REITs are still expected to deliver returns above inflation and offer higher yields than comparable government bonds, Guha said.

Just saw from other news the reit net buyers are retail and reit net sellers are institution. This is indeed market at work. But based on my experience without institution the reit price will not go up much. I guess the reit retail are buying not to sell but purely for dividends. Nothing wrong just I prefer to move with instead of against institutions. I never sell my existing reit stocks just stop buying even if some are really good price.

 

[weng0202]

Just saw from other news the reit net buyers are retail and reit net sellers are institution. This is indeed market at work. But based on my experience without institution the reit price will not go up much. I guess the reit retail are buying not to sell but purely for dividends. Nothing wrong just I prefer to move with instead of against institutions. I never sell my existing reit stocks just stop buying even if some are really good price.

REIT prices will go down if rates rises. Have to see what the fed decides.

 

[limster]

REIT prices will go down if rates rises. Have to see what the fed decides.

thats why you should diversify and buy REITs plus banks.

If rates rise, banks should be able to profit. when rates rise, banks will jack up the loan interest rate ASAP but are usually slower in increasing deposit rates.

 

[iduncheckmail]

thats why you should diversify and buy REITs plus banks.

If rates rise, banks should be able to profit. when rates rise, banks will jack up the loan interest rate ASAP but are usually slower in increasing deposit rates.

thats like betting on both teams playing against each other.
not very smart, you're not even taking a stand.

 

[limster]

thats like betting on both teams playing against each other.
not very smart, you're not even taking a stand.

Both REITs and Banks have good dividends, I don't see a problem with making sure you have lots of both!

Take a look at Dividend Warrior's portfolio: Banks - REITs - Tech!

 

[weng0202]

thats why you should diversify and buy REITs plus banks.

If rates rise, banks should be able to profit. when rates rise, banks will jack up the loan interest rate ASAP but are usually slower in increasing deposit rates.

Yeah I've started a non-reit dividends portfolio. Have added DBS, OCBC, comfortdelgro, Hong leong, Valuemax, Vicom, singtel and sembcorp industries. Will add more along the way with my savings and dividends from REITs.

 

[weng0202]

thats like betting on both teams playing against each other.
not very smart, you're not even taking a stand.

Should have a diversified portfolio so that it's more resilient especially when markets are down.

 

[sohguanh]

Yeah I've started a non-reit dividends portfolio. Have added DBS, OCBC, comfortdelgro, Hong leong, Valuemax, Vicom, singtel and sembcorp industries. Will add more along the way with my savings and dividends from REITs.

ValueMax rare to see from recent post. Good pick becuz I have it too together with MoneyMax Asphial all in pawnbroker business. Hong Leong you have maybe take a look at Sing Investment yes that company that gives us GoSavers account.

 

[weng0202]

ValueMax rare to see from recent post. Good pick becuz I have it too together with MoneyMax Asphial all in pawnbroker business. Hong Leong you have maybe take a look at Sing Investment yes that company that gives us GoSavers account.

Want to add one more to make it ten but haven't decided the last one. Was leaning towards netlink trust.

 

[sohguanh]

Want to add one more to make it ten but haven't decided the last one. Was leaning towards netlink trust.

That I have too not bad just don't expect big capital growth in short periods of time some is slow and steady pattern but dish out reasonable dividends

 

[weng0202]

That I have too not bad just don't expect big capital growth in short periods of time some is slow and steady pattern but dish out reasonable dividends

Not really looking for much capital growth. This REITs and non-reits portfolio is mainly for income when I retire. I have a world ETF and US stocks for growth. Last basket will be money left in CPF OA.

 

[Velton]

Yeah I've started a non-reit dividends portfolio. Have added DBS, OCBC, comfortdelgro, Hong leong, Valuemax, Vicom, singtel and sembcorp industries. Will add more along the way with my savings and dividends from REITs.

Yours quite similar to mine.

 

[limster]

Yeah I've started a non-reit dividends portfolio. Have added DBS, OCBC, comfortdelgro, Hong leong, Valuemax, Vicom, singtel and sembcorp industries. Will add more along the way with my savings and dividends from REITs.

when I see some local blogger portfolios, they are super concentrated in SG REITs which is a mistake from asset allocation perspective.... even if they want to remain solely with SG stocks, there are so many other SG dividend stocks they can buy to diversify, in 2024 even the no-hope Singtel went up by 30% and Comfort Delgro by 10% (dividends added to price gain)

(the 3 banks everyone knows, no need to mention....)

Quoting my post from Jan 2025. There are so many good dividend stocks in SG, its a mistake to only buy REITs. Don't get me wrong, I like REITs, but I like good dividend stocks in general....

 

[ask_yip]

Another Q, another cui result from MINT

 

[limster]

FLCT price quite steady. $0.99-$0.985 today. Good chance it will end up above $1 this year....

 

[lunafan]

Another Q, another cui result from MINT

Don’t understand, the result looks good
price is still stubbornly high

 

[ask_yip]

Don’t understand, the result looks good
price is still stubbornly high

my interpretation is revenue down, income down, borrowing up

so is cui to me