General S-REITs Discussion Thread

[wahkao3]

this is wrong. after you exercise your rights, you can still take back your money by selling it in the open market.

Same old REIT myths nonsense.

Coming from wahkao leh. What can we expect?

ok loh dont believe. Hahaha

 

[sophie.wee.weng]

I still believe in you, my Master!

 

[winguy]

Qn to all. What % of your equities portfolio are reits? Are you overly concentrated? Qhat are the downsides of a high % in reits?

 

[wahkao3]

Qn to all. What % of your equities portfolio are reits? Are you overly concentrated? Qhat are the downsides of a high % in reits?

currently, my view is that Singapore REITs are in mid range. Not very high, not very cheap either.

We need a good crash to bring REITs prices down, attractive enough to be considered a low risk, high return opportunity.

 

[sandwicher]

Qn to all. What % of your equities portfolio are reits? Are you overly concentrated? Qhat are the downsides of a high % in reits?

As with all investments, REIT or not, look at the quality of the company. You're buying the business, not the ticker.

Some non REIT has debt gearing higher than REIT. Are those necessarily better? Look at their debt maturity profile, all in rates, diversification of debts and quality of assets. Concentration risk is always a double edge sword for any type of investments. But if you deem them quality assets, why say no to such concentrations?

 

[bhalimking]

I did a short write up on SPH Reit for those who are interested and vested.

A Path to Forever Financial Freedom (3Fs): SPH Reit - When will Seletar Malls be injected?

Not vested in SPH Reit but vested in SPH

 

[lzydata]

Cache Logistics Trust has refinanced almost all of its existing debt due 2015-6 to be due in 2018-9. From 1.6 years before, weighted average debt maturity is now 4.2 years, with no debt due until Oct 2017.

Announcement
http://infopub.sgx.com/Apps?A=COW_C...ileId=Cache_Entry into Facility Agreement.pdf

Presentation slides
http://infopub.sgx.com/Apps?A=COW_C...b&fileId=Cache_3Q2014_Presentation Slides.pdf

 

[winguy]

distribution frequency aside, a-reit vs mint, what's the main difference, and which do you favour?

 

[Guojing88]

Cache Logistics Trust has refinanced almost all of its existing debt due 2015-6 to be due in 2018-9. From 1.6 years before, weighted average debt maturity is now 4.2 years, with no debt due until Oct 2017.

For me, I am more concerned over the coming transition from Master Leases to Multi tenanted buildings.

I saw how Sabana was negatively affected since the cost increase from losing the Triple Net benefits far outweigh any increase in revenue.

I hope ARA mgmt team can manage that transition for Cache better.

 

[marandaz]

For me, I am more concerned over the coming transition from Master Leases to Multi tenanted buildings.

I saw how Sabana was negatively affected since the cost increase from losing the Triple Net benefits far outweigh any increase in revenue.

I hope ARA mgmt team can manage that transition for Cache better.

IIRC those master leases are signed at a low base since IPO (?) or 2011 unlike Sabana who signed their leases with caveats.

Of course finding tenants might be hard given the upcoming supply, but I guess it is a much easier job for ARA than Sabana. Who knows if lady luck is smiling the rental reversion may install surprises...

 

[bhalimking]

For those who are vested or interested in FCT

Hope next year will be better ^^

A Path to Forever Financial Freedom (3Fs): What's next for FraserCenterPoint Trust (FCT)?

 

[urameshi_85]

Was lurking for a long time and recently went for a Reits investment course that teaches you how to value Reits. This was the framework the instructor told us to create and analyse each Reits with respect to its strength and weakness.

Disclaimer : These are just knowledge I have gotten from the course and wish to discuss with the pros in this thread. Not a call to buy or sell. The below data some are taken from other websites which i do not claim to be 100% correct. Please do your own checking and due diligence to confirm the authenticity of these data. the instructor did inform that now was not a good time to buy Reits. Thus this example below is just for illustration purpose and to discuss on points he may have missed out.

An example is Starhill Global which I really wish to do this analysis because as Singaporeans we love buying "undervalued stuff"

Type : Mixture of Retail and Office(Retail (86.6%) + Office (13.4%) by Revenue)

Current Price : 0.81

NAV : 0.92 – Retrieved from reitdata.com

Yield : 6.224% – Retrieved from reitdata.com
(Must be more than 6% than I will consider)

Gearing 29.4% – Retrieved from reitdata.com
(Must be less than 35% than I will consider)

Price to NAV ratio: 0.88 -undervalued in terms of NAV

WALE (Weighted average lease expiry) : 45.9% of master tenants expiring on 2016 which may not be a good thing. (http://starhillglobalreit.listedcompany.com/misc/ar/ar2013/ar2013.pdf) - page 33 however this is based on 31.12.2013 report which may be outdated

WADM (Weighted average debt maturity) Debt maturing in 2015 and 2016 based on the 2013 annual report - based on the instructor this is not good. (http://starhillglobalreit.listedcompany.com/misc/ar/ar2013/ar2013.pdf) - page 59 however this is based on 31.12.2013 report which may be outdated

Forex Risk : Yes (japan, China, Australia, Malaysia, Singapore)

Country Risk : Yes (japan, China, Australia, Malaysia, Singapore)

 

[urameshi_85]

He also informed to rinse and repeat the whole analysis for other reits to compare which one is the better one. Upz for any discussion guys.

 

[Middle-C]

Was lurking for a long time and recently went for a Reits investment course that teaches you how to value Reits. This was the framework the instructor told us to create and analyse each Reits with respect to its strength and weakness.

Disclaimer : These are just knowledge I have gotten from the course and wish to discuss with the pros in this thread. Not a call to buy or sell. The below data some are taken from other websites which i do not claim to be 100% correct. Please do your own checking and due diligence to confirm the authenticity of these data. the instructor did inform that now was not a good time to buy Reits. Thus this example below is just for illustration purpose and to discuss on points he may have missed out.

An example is Starhill Global which I really wish to do this analysis because as Singaporeans we love buying "undervalued stuff"

Type : Mixture of Retail and Office(Retail (86.6%) + Office (13.4%) by Revenue)

Current Price : 0.81

NAV : 0.92 – Retrieved from reitdata.com

Yield : 6.224% – Retrieved from reitdata.com
(Must be more than 6% than I will consider)

Gearing 29.4% – Retrieved from reitdata.com
(Must be less than 35% than I will consider)

Price to NAV ratio: 0.88 -undervalued in terms of NAV

WALE (Weighted average lease expiry) : 45.9% of master tenants expiring on 2016 which may not be a good thing. (http://starhillglobalreit.listedcompany.com/misc/ar/ar2013/ar2013.pdf) - page 33 however this is based on 31.12.2013 report which may be outdated

WADM (Weighted average debt maturity) Debt maturing in 2015 and 2016 based on the 2013 annual report - based on the instructor this is not good. (http://starhillglobalreit.listedcompany.com/misc/ar/ar2013/ar2013.pdf) - page 59 however this is based on 31.12.2013 report which may be outdated

Forex Risk : Yes (japan, China, Australia, Malaysia, Singapore)

Country Risk : Yes (japan, China, Australia, Malaysia, Singapore)

Bought 15 lots at 0.80...

 

[hindsight]

fomc is poised to announce the end of QE3

how will this affect REITs overall now that interest rates are likely to increase?

will this mean its not a good time to load up on REITs since their share prices will likely drop?

would love to hear some expert advice on this, thx in advance

Any increase will be very slow, it will not negatively impact most reits. Any impact is purely psychological.

Look at interest rate sensitive/defensive sectors like utilities and reits, ETFs like RWR and VPU are outperforming the S&P and the Dow by a mile.

Anyway fixed income and most stocks will tank if rates move up quickly, there won't be anywhere to hide unless you run to cash.

 

[Bustamagic]

Does anyone have or know where to find the latest analyst reports on these 4 Reits? thanks.

1. First Reit
2. Cache
3. AIMSAMP
4. Saizen

 

[Tuckie]

whats ur take on soilbuild business space reit

 

[hindsight]

thx...

may i ask what are the REITs with fixed rate debts? not floating ones

There's no such thing as fixed rate debts, all reits need to roll over their debts every few years so they are actually all "floating", what you want to look for are the ones with longer term debt thats been locked in at low interest rates. Also avoid the overleveraged ones.

 

[i-am-king]

I am a newbie at REITs so would like to ask experts here some questions.... Is the purpose for REITs only for dividends? Because I did some study and realise their value don't really go up? Thanks for helping.

 

[crow123]

I am a newbie at REITs so would like to ask experts here some questions.... Is the purpose for REITs only for dividends? Because I did some study and realise their value don't really go up? Thanks for helping.

I rather prefer their value dont go up