General S-REITs Discussion Thread

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NewInvestor

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thosai said:
Just wondering, if the general market gloom sets in, will REITs be sold down? Currently they are still holding up, I am suspecting they may start to move down once pple start to worry and sell...
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Yes it is possible REITs may be sold down etc. Wait for it. Buy when it reaches your price target.
 
Genosis

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Tooi Kono Machi De said:
Need some recommendations from you guys...Looking to get my 1st retail REIT and Im looking at either FCT or CMT...

FCT is currently trading below its NAV so it makes sense to probably go in that 1st but would like to know if there are any key differences between the 2 REITS besides the obvious locations and both REITS each having a couple of "burden" malls.
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CMT has a better credit rating than FCT.

CMT has a much larger scale than FCT. So much so that it has the ability to redevelop entire malls on its own. FCT can only do AEI or acquisition. Moving forward, I think scale is important for REITs. CMT also owns part of Capitamall retail China trust, so is a proxy to China's long term growth.

FCT has a lower gearing than CMT. A solid track record of rising DPU over many consecutive quarters so far.

(Vested in both)
 
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Genosis

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thosai said:
Just wondering, if the general market gloom sets in, will REITs be sold down? Currently they are still holding up, I am suspecting they may start to move down once pple start to worry and sell...
Click to expand...

Definitely will get sold down. It is just a matter of which ones will be sold down more.

IMO, healthcare is the most resilient bcos hospitals and nursing homes will not be affected by China slowdown. Even if China stock market crashes, patients still need medical care. Furthermore, healthcare REITs have really long leases. Even during the 2009 crisis, occupancy rates were still healthy.
 
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thosai said:
Just wondering, if the general market gloom sets in, will REITs be sold down? Currently they are still holding up, I am suspecting they may start to move down once pple start to worry and sell...
Click to expand...

My 2 cents.

REITs are similar to equities in terms of correlation, being an equity/property hybrid. When the market sentiment is good or bad, REIT prices will go up or down, respectively. Similarly, when a particular sector whose REITs are dependent on income from (e.g. manufacturing >> industrial REIT, tourism levels >> hospitality + a certain extent retail REITs), it will follow the up/down condition of that sector.

That being said, REITs do not go all the way until zero value, unlike company equities where it could go bust overnight, because they have hard tangible assets (i.e. the buildings) which will not "disappear". Besides market sentiment, the competency of the REIT managers is also another key to the differences of prices from a REIT's NAV.
 
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I like CMT's and MIT's management. Those are the 2 I already have. I hv Maple GCC but is reviewing that now.

I buy whenever there are dips ie when general market sentiment takes a dive.
 
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Tooi Kono Machi De said:
Need some recommendations from you guys...Looking to get my 1st retail REIT and Im looking at either FCT or CMT...

FCT is currently trading below its NAV so it makes sense to probably go in that 1st but would like to know if there are any key differences between the 2 REITS besides the obvious locations and both REITS each having a couple of "burden" malls.
Click to expand...

jus curious, will u be dollar cost averaging or buy say a few thousand shares?
 
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Darkzi0n said:
yes, that's the one i was toking about. a key limitation of the study is the lack of comparable REIT and non-REIT malls within the same geographical location. In the study, they used distance to key amenities (e.g. MRT) to control for the geographical location. However, being 300m away from woodlands MRT is probably very different from being 300m away from Orchard MRT.
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Then perhaps Tampines is a good gauge? 3 malls, 1 of which is REIT. Hmmm
 
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Bedokian said:
My 2 cents.

REITs are similar to equities in terms of correlation, being an equity/property hybrid. When the market sentiment is good or bad, REIT prices will go up or down, respectively. Similarly, when a particular sector whose REITs are dependent on income from (e.g. manufacturing >> industrial REIT, tourism levels >> hospitality + a certain extent retail REITs), it will follow the up/down condition of that sector.

That being said, REITs do not go all the way until zero value, unlike company equities where it could go bust overnight, because they have hard tangible assets (i.e. the buildings) which will not "disappear". Besides market sentiment, the competency of the REIT managers is also another key to the differences of prices from a REIT's NAV.
Click to expand...

Also need to compare how much the reit managers are paid. Whether it is reasonable or too high
 
yihao93

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Genosis said:
CMT has a better credit rating than FCT.

CMT has a much larger scale than FCT. So much so that it has the ability to redevelop entire malls on its own. FCT can only do AEI or acquisition. Moving forward, I think scale is important for REITs. CMT also owns part of Capitamall retail China trust, so is a proxy to China's long term growth.

FCT has a lower gearing than CMT. A solid track record of rising DPU over many consecutive quarters so far.

(Vested in both)
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Buying whatever geno is buying now!!

btw why any1 know why areit last year yield 2% only ?

also what if i want go for the atm press press 1 for areit? scb can go ? need go scb atm? :o

TIA
 
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Tooi Kono Machi De

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Genosis said:
CMT has a better credit rating than FCT.

CMT has a much larger scale than FCT. So much so that it has the ability to redevelop entire malls on its own. FCT can only do AEI or acquisition. Moving forward, I think scale is important for REITs. CMT also owns part of Capitamall retail China trust, so is a proxy to China's long term growth.

FCT has a lower gearing than CMT. A solid track record of rising DPU over many consecutive quarters so far.

(Vested in both)
Click to expand...

Sorry noob qns trying to learn here... Why is FCT gearing lower but credit rating worse than CMT?
 
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