General S-REITs Discussion Thread

[Mecisteus]

Many thanks for your reporting and views!

Did any of the investors suggest AEI for Bedok Point to include a cinema? I am of the opinion that the inclusion of a cinema will win the notions of IT or Educational diversification hands down. If it did come true, Bedok Point is going to constitutes > 6% of the overall porfolio.

if you look at 1 of the slides, leisure and entertainment are less profitable to rent out. couple with the small size of bedok mall, its not practical to have a cinema there. just stick to more restaurants there.

 

[ChilliCrab_]

if you look at 1 of the slides, leisure and entertainment are less profitable to rent out. couple with the small size of bedok mall, its not practical to have a cinema there. just stick to more restaurants there.

Thanks for pointing that out.

 

[milky25]

One investor raised a question which I thought was interesting. He mentioned that traffic at Northpoint (41.7 Million) almost doubled that of Causeway Point (23.4 Million) despite the mall smaller than the latter. Are there further growth for traffic at Causeway Point

I would like to point out that northpoint is sandwich by MRT and Bus interchange, a huge chunk of 41.7m of traffic might be really really "transicient" depending on how the sensors are positioned.

For causeway point, the mrt and bus interchange are directly connected; there's no need to passby the shopping mall.

 

[bhalimking]

I would like to point out that northpoint is sandwich by MRT and Bus interchange, a huge chunk of 41.7m of traffic might be really really "transicient" depending on how the sensors are positioned.

For causeway point, the mrt and bus interchange are directly connected; there's no need to passby the shopping mall.

Hi milky

Thanks for your views.

I agree that traffic may not be an accurate figure to track on. People can simply walk past the shops without even looking at them and still accounted for in the traffic counts. I would rather see average shops sales growth increase as a better measure to gauge the malls performance especially after aei.

 

[tiny]

if you look at 1 of the slides, leisure and entertainment are less profitable to rent out. couple with the small size of bedok mall, its not practical to have a cinema there. just stick to more restaurants there.

I heard that cinema commands a lot of human traffic. Thus they have the bargaining power for lower rent from the landlord.

 

[bastogne]

 

[Wryer]

Tenant mix aside, how do the REITs investors feel about the impending rise in interest rates? Seems like this is the chief suppressor on the optimism levels for 2014 for SREITs.

 

[mjboon]

AIMS AMP Capital Industrial REIT (AACI REIT) today said its two development projects, at 103 Defu Lane 10 and 20 Gul Way Phase Two Extension and Phase Three are progressing well.
'Our current development projects are making good progress and are on budget. Phase Two Extension of 20 Gul Way is already 45 percent complete and the redevelopment of 103 Defu Lane 10 is 75 per cent complete,”

 

[dr3amgawd]

Tenant mix aside, how do the REITs investors feel about the impending rise in interest rates? Seems like this is the chief suppressor on the optimism levels for 2014 for SREITs.

While the talk of the town is potential rise in interest rates, has there been a clear indication when it will actually happen ? Personally i feel that if the US is on a recovery track, its not likely the fed would do anything to derail it until the signs are very clear.

Having said that, its reassuring that some of the REITs have taken steps to mitigate this potential risk.

 

[Dividends Warrior]

AIMS AMP Capital Industrial REIT (AACI REIT) today said its two development projects, at 103 Defu Lane 10 and 20 Gul Way Phase Two Extension and Phase Three are progressing well.
'Our current development projects are making good progress and are on budget. Phase Two Extension of 20 Gul Way is already 45 percent complete and the redevelopment of 103 Defu Lane 10 is 75 per cent complete,”

Nice! Nice!

Even better, 103 Defu Lane is already 76% leased out to an anchor tenant and 20 Gul Way Phase 2E & 3 are already 100% leased to CWT.

So, once the construction is completed, rental will start to roll in.

 

[rokawa2]

maybe that's why go up 2-3cents

 

[mjboon]

Nice! Nice!

Even better, 103 Defu Lane is already 76% leased out to an anchor tenant and 20 Gul Way Phase 2E & 3 are already 100% leased to CWT.

So, once the construction is completed, rental will start to roll in.

To double confirm is a good news:

(TOP) for 103 Defu Lane 10 by the end of May 2014, and rental income expected in the September 2014 quarter.

 

[dr3amgawd]

Turning to acquisition for growth

Frasers Centrepoint Trust (FCT) reported 1QFY14 DPU of 2.50 S cents, up 4.2% YoY, in line with our expectations. Causeway Point (CWP) continued to shine in 1Q, turning in a robust 8.6% growth in NPI, while Northpoint registered a 1.4% growth. However, its portfolio performance was somewhat dampened by Bedok Point, which saw negative reversions and occupancy drop during the quarter.

Going forward, FCT disclosed that it will continue to fine-tune the tenant mix at Bedok Point, and is willing to lower rents to keep incumbents and entice new tenants for sustainable performance. Hence, pressure on base rents and fluctuations in occupancies are expected going forward. Nevertheless, management maintains that CWP and Northpoint are likely to continue to deliver in FY14. With the completion of the A& A works at CWP, FCT is also looking to acquisitions to boost growth. We maintain BUY with unchanged fair value of S$2.02 on FCT.

src : ocbc research

 

[Mecisteus]

I heard that cinema commands a lot of human traffic. Thus they have the bargaining power for lower rent from the landlord.

it is generally true for other tenants which are occupying a bigger space. ie supermarket,etc. they can command a lower rent.

but bedok mall is quite small to have a cinema.

 

[bastogne]

 

[bastogne]

 

[bigbears]

MCT DPU 1.865c Payable 07 Mar Ex-Date 29Jan

 

[bastogne]

 

[ingen]

Does anyone else find this unimpressive? Since DPU continues to exceed actual net income

 

[fusilli]

Does anyone know when FEHT is announcing its earnings?