General S-REITs Discussion Thread

[z3r0plustick]

I'm in the queue for k71u, a17u and t82u. See what happens next few days.

 

[n1ef5ng]

MLT or FCT are still attractive too at current prices.

ST Engg and SATS have recovered oredi.....so not as attractive anymore

I went to look at the reports for both of them and I really like Mlt. Can enlighten me why is fct price higher than the rest. Gonna q for mlt!

 

[Mecisteus]

Some of the S stocks that one must have.

SATS
STE
SIAE
Starhub

 

[Some-one]

Hey guys, after one year in the stock market. I was firmly believe that penny stocks helps but apparently it does not. Out of greed and out of control, I bought ccm group at 0.096 and cut immediately at 0.06 in ten minutes . thought I put in 50 lots, that hurts me and I decided to tweak my strategy. Come 2014,i believe dividend warriors strategy is the good way to go, believe in fundamentally strong company. A greed person such as me should stick to this. As now reit is low at the moment and suntec impressed me Alot when I went over last week, I am thinking of buying suntec or cache to start up my reit investment. Any suggestion

I hope is not too late. I have remove all the penny watch list and only solely focus on fundamental. Hope this afternoon rash decision from me can makes me prosper in investing for the rest of my life haha(25 now) in reit I am worried that the interest rate might increase, any views on that

Instead I would say that penny stock do help. One of the users here know that I have bought a penny stock some time in Feb this year. That stock has netted me a 32% gain and has now stabilised.

The key question is do you know much about fundamental analysis to make the correct choice? Yes, the risk is higher than REITs but the capital gain can be much better than REITs.

Now, the stock that I bought when it is a penny stock is no more a penny stock. I still love penny stocks but looking at those stocks that are under 10 cents, 99% of them are not strong companies so it is not surprising that they are penny stocks.

For CCM group, looking at the past 3 years of chart, it is making a loss on the last 2 years. There are no dividends and the debt to equity ratio is greater than 2. It is not a strong company at all.

 

[Dividends Warrior]

Some of the S stocks that one must have.

SATS
STE
SIAE
Starhub

Add Singtel, SPH and Singpost to become Super 7!!!

But must leave out SMRT.....

 

[flyersummer]

buy KingWan. have a look at its fundamental

 

[n1ef5ng]

DW, is there any particular reason why u did not add star hill global in ur portfolio

 

[Dividends Warrior]

DW, is there any particular reason why u did not add star hill global in ur portfolio

Starhill Global's Taka and Wisma Atria are downtown malls.

I prefer suburban malls bcos they are more resilient. FCT and CMT meet my requirements better.

Abit of my investment history. I used to have Starhill Global back in 2010.

 

[chyn_no]

hi DW,
any view on bedok point? since bedok mall has attracted more crowd. will it affect the dpu?

 

[Dividends Warrior]

hi DW,
any view on bedok point? since bedok mall has attracted more crowd. will it affect the dpu?

Bedok Mall definitely is strong competition.

In the short term, DPU will not be affected.

CWP and NP are sill the 2 biggest crown jewels in FCT's portfolio.

 

[tcsstcss]

Sorry DW .. what is CWP ?
And Fraser bid so high for the the plot of land beside NP, wonder doing good or bad.

 

[Dividends Warrior]

Sorry DW .. what is CWP ?
And Fraser bid so high for the the plot of land beside NP, wonder doing good or bad.

CWP is Causeway Point!

FCL will probably inject North Gem into FCT in the future.

But the next target for acquisition should be Changi City Point.

 

[tcsstcss]

Thanks DW. Maybe I go add abit of FCT.

 

[mjboon]

Some of the S stocks that one must have.

SATS
STE
SIAE
Starhub

Got none of them, yet
Still waiting for SIAE .......

 

[mjboon]

Add Singtel, SPH and Singpost to become Super 7!!!

But must leave out SMRT.....

I don't have any "sexy" from Super 7!!
Hmm, don't want to add VICOM and FCT for Nine Muses?

 

[n1ef5ng]

Strong closing for MLT!!

 

[standarture]

Hope S-REITs will have a positive yield next year!

 

[tiny]

Hope S-REITs will have a positive yield next year!

Power of CD! Huat rah~~

 

[mrwonderful]

Hope S-REITs will have a positive yield next year!

I wouldn't hold my breath.. 10 year yields just hit 3%, first time since mid-2011

 

[Dividends Warrior]

S-REITS -Time To Accumulate S-REITs (Source: DMG Research)
Published: Thursday, December 26, 2013

Since late May 2013 when fears of global interest rate tightening spooked capital markets worldwide, the S-REITs sector has collapsed by over 20%, underperforming the wider FSSTI index (down by 10%). We think the selldown has overly discounted both the macro and REITspecific fundamentals, hence we believe it is an opportune time to buy ahead of consensus upgrades. Maintain BUYs on Keppel-REIT, AIMS AMP, Cambridge and Cache Logistics.

The SREITs under our coverage are currently trading at 6.5% FY14F DPU yields, with almost 3.5% spread over Singapore’s 10-year bond yield (historical average 4.6%). This is on the back of a 20% correction in the SREITs since May, against the wider FSSTI index which retraced by only 10%.


Our fixed income team forecasts only a 66bps rise in US’ 10-year bond yield over the next 12 months, which is expected to push up Singapore rates, with +17bps for 2-year government bond yield and +55bps for 10-year yield by end-2014F. We estimate 3-5% earnings impact on the S-REITs, assuming a 100bps rise in financing costs, which will more than fully account for the rate hikes projected by our fixed income team.

Current valuations suggest that the commercial office and industrial sectors are the most attractive in our view, given the low forward supply stock vis-à-vis the mid-cycle demand, which will continue to underpin a positive upcycle rental reversion. New office supply is expected outpace historical average demand, with new industrial supply through 2016F having reached 71% pre-commitment.

We remain lacklustre on the hospitality REITs with new supply coming onstream (5.9% CAGR until 2015F) and the recent foreign worker riots, which could arrest visitor arrivals (historical growth of 6.7%). However, its low valuations offer limited downside risks at this juncture. In the absence of strong tourism arrivals, suburban malls are expected to outperform prime retail malls, as Singapore’s retail space per capita is still among the lowest in developed Asia-Pacific.