General S-REITs Discussion Thread

[Dyhalt]

I still have 25% of my stock holdings in REITs, and I think the REITs had over reacted to the interest rate hike fear just like all other things in the news.

The 3 things that have straight impact on sREITs are:

1. Interest rate hike fear & stronger USD, but this is no longer a surprise
2. Weakening GDP growth in SG, same as above, nothing new
3. Oversupply of hospitality space in coming years. This might be a long term problem but you can pick your REITS constituent to minimize the impact.

IMHO I think there is limited downside risk in REITs and a stable growth in 2016 for REITs considering FED has no intention to raise interest rate aggressively. There might be downward pressure next year but the dividend yield is rewarding enough to take on the risk.

Cheers

 

[Genosis]

so we shld look for smth with low gearing ratio?

Yes. Preferably below 35%.

 

[yihao93]

Which reits are lower risk ah
Is there such a thing :x
Or is now not a good time? I seem to somehow get the impression that reits last time divy many many now little little
Miss the boat alr?

Perhaps don't even jiak reits? X. X

 

[xSieghartx]

Which reits are lower risk ah
Is there such a thing :x

Can consider the relevant industries they're in when looking at risk, personally I feel that hospitality REITS are of higher risk due to the cyclical nature of it.

And like the bros above mentioned, gearing ratio matters as well, the higher their gearing, the riskier they are, but generally higher returns haha.

 

[xshinado]

Which reits are lower risk ah
Is there such a thing :x

Maybe this might help for comparison?
http://mystocksinvesting.com/singap...al-analysis-comparison-table-6-december-2015/

 

[thegodfather]

Which reits are lower risk ah
Is there such a thing :x
Or is now not a good time? I seem to somehow get the impression that reits last time divy many many now little little
Miss the boat alr?

Perhaps don't even jiak reits? X. X

so many to choose from.. alot still below NAV but watch for the gearing!

 

[Layers]

Asiamall is not a REIT. I would be interested if they become one.

Between FCT and CMT, the emphasis is on retail malls, so yes in a way they are similar.

Always tot northpoint is under asiamall

 

[Bedokian]

so many to choose from.. alot still below NAV but watch for the gearing!

And also watch out for location (especially retail). Since REITs are a hybrid of equity/property, the term "location, location, location" still holds true.

 

[Layers]

How to evaluate a reit. Can't use normal value investment to see by estimating the value?

 

[thegodfather]

And also watch out for location (especially retail). Since REITs are a hybrid of equity/property, the term "location, location, location" still holds true.

Retail reits i dont have any. But i am quite keen on office/commercal reits. I currently have industrial mostly. but A-reit is over valued to be attractive enough. MCT what do you think?

 

[Bedokian]

Always tot northpoint is under asiamall

Nope, but Asiamall has Hougang Mall, Liang Court, Tiong Bahru Plaza, Whitesands, Tampines 1 and Century Square, the last 3 basically an effective "retail building monopoly" in the far east.

Which is why I will find it interesting should it become a REIT.

 

[thegodfather]

How to evaluate a reit. Can't use normal value investment to see by estimating the value?

this might be of help! not written by me

http://static.webpaage.com/public/filehost/strategicalliance/about_reits.pdf

 

[Genosis]

Which reits are lower risk ah
Is there such a thing :x
Or is now not a good time? I seem to somehow get the impression that reits last time divy many many now little little
Miss the boat alr?

Perhaps don't even jiak reits? X. X

CMT and Ascendas REIT are the only 2 A-rated ones (less risky). The credit rating for the rest are BBB or below (riskier).

Go for REITs with long WALE, strong sponsor, low gearing, high % of debts on fixed interest rates, track record of consistent DPU growth.

 

[Bedokian]

Retail reits i dont have any. But i am quite keen on office/commercal reits. I currently have industrial mostly. but A-reit is over valued to be attractive enough. MCT what do you think?

Not vested in MCT but the advantage of it is that it holds the "southern retail mall monopoly" with Vivocity and also office/commercial spaces along the southern coast stretch, which along with Alexandra Technopark (by FCOT), I believe that may be a popular outside-of-CBD office area.

Caveat emptor.

 

[yihao93]

Cool, seems like I got sth to do during xmas liao

 

[garytj89]

Holding sph reit, cmt and foct
prefer suburban neighbourhood retail reit.

 

[Layers]

Cool, seems like I got sth to do during xmas liao

what u planning?

 

[yihao93]

what u planning?

See see look look study study scheme scheme for reits

 

[Bedokian]

See see look look study study scheme scheme for reits

Actually REITs to me is one of the simplest asset classes to analyze.

 

[Layers]

Actually REITs to me is one of the simplest asset classes to analyze.

nv tried, hope true. Xmas homework for me