*Official* MasterLeong Thread

[Weaboo]

Mct is VivoCity reit.... VivoCity is Wun Wun Jiak beehoon

 

[MasterLeong]

Sry guys... I meant to compare between MCT, CCT & FCoT... all the 3 commercial trusts. Stats appended as below. It seems to me that FCoT seems to be the best catch considering the low PB and high yield? Only bad thing is its low cap and low volume but if I hold small qty this should not bother me too much right?

MCT/ CCT/ FCoT
Yield 5.76/ 5.65/ 7.77
PB 1.09/ 0.88/ 0.82
RoA 5.86/ 3.91/ 3.47
RoE 9.62/ 5.51/ 5.85

also to add, do you know the difference between grade A and grade B offices?

FCOT is more towards grade B offices, that's why the yield is much higher


example China Square, its nearer to china town and is a lower quality office asset

grade A assets are those u see under CCT, all inside CBD area

maybe you can read up more and grade A vs grade B office assets

cheers

 

[Dividends Warrior]

Mct is VivoCity reit.... VivoCity is Wun Wun Jiak beehoon

I like beehoon. Below 1.40 sure jiak.

 

[MasterLeong]

I just noticed that FCOT got alexandra techno park which is behind maple tree business city

FCOT and MCT are competitors LOL LOL LOL

http://www.fraserscommercialtrust.com/asset-portfolio/singapore/atp.aspx#.WE_rtNV96M8

 

[MasterLeong]

Mct is VivoCity reit.... VivoCity is Wun Wun Jiak beehoon

yup, I will surely add 5000 more if it comes to 1.40

or after these 2 days fed fears all clear... maybe 1.42 i might jiak

 

[madtari]

Thanks for highlighting this. I was thinking if office in prime area is doing as badly as residential? Just take a look at how bad those condo in CCR fare against those OCR.

also to add, do you know the difference between grade A and grade B offices?

FCOT is more towards grade B offices, that's why the yield is much higher


example China Square, its nearer to china town and is a lower quality office asset

grade A assets are those u see under CCT, all inside CBD area

maybe you can read up more and grade A vs grade B office assets

cheers

 

[MasterLeong]

Thanks for highlighting this. I was thinking if office in prime area is doing as badly as residential? Just take a look at how bad those condo in CCR fare against those OCR.

Residential market bad due to cooling measures
Commercial assets u can look at CCT presentation slides, rents have been coming down over the last 3 quarters and may bottom soon

 

[Dividends Warrior]

Thanks for highlighting this. I was thinking if office in prime area is doing as badly as residential? Just take a look at how bad those condo in CCR fare against those OCR.

The drop in rental for Grade A and Grade B office is almost the same between 2015 and 2016. Grade B dropped slightly less.

 

[Dividends Warrior]

The base case scenario for Grade A office rent is shown in the black-dotted line and the bear case scenario is represented by the red-dotted line. The bottom is expected around 2017 year end.

 

[MasterLeong]

In down/slow economy like now, good management is very impt
Many reits are showing lower dpu

While good management can still maintain dpu

Example CCT they tend to have longer leases and they very proactive in renewing the leases last year to be ahead of the big supply coming out in 2016/2017, lastly their timing acqusition of capital green
End up instead of 2016/2017 dpu declining
Dpu actually going up for 2016/2017

In 2016 agm many shareholders clap loud loud to acknoledge management's hard work

If u compare CCT with keppel reit, u will be able to tell the big difference between good and bad management

Cheers

 

[mcsane]

I like beehoon. Below 1.40 sure jiak.

Aiseh. I like the sound of it

 

[Dividends Warrior]

Aiseh. I like the sound of it

Quite a few queues to set up tmr for REITs. Deciding on the *** and number of ammo batches to deploy now.

 

[WindBoi]

also to add, do you know the difference between grade A and grade B offices?

FCOT is more towards grade B offices, that's why the yield is much higher


example China Square, its nearer to china town and is a lower quality office asset

grade A assets are those u see under CCT, all inside CBD area

maybe you can read up more and grade A vs grade B office assets

cheers

the catering segment is different for FCOT. Grade A may look better but also more expensive, and something people will upgrade to.The managers do feel grade B is more stable in terms of pricing.

while they are smaller, management have done well to keep dpu growing since they took over. however, do note that next year HP may moved out of alexandra technopark, so there may be a large overhang there. their price might come down a fair bit.

since the expiry is in sep and nov, and they would need to inform the landlord 6 months in advance you could probably carry out an inquiry to the company whether there are any news in mar next year.

its probably not for the faint hearted but good management means it might be an opportunity.

 

[spiritGate]

ML, got consider adding Keppel dc reits??

 

[Dividends Warrior]

the catering segment is different for FCOT. Grade A may look better but also more expensive, and something people will upgrade to.The managers do feel grade B is more stable in terms of pricing.

while they are smaller, management have done well to keep dpu growing since they took over. however, do note that next year HP may moved out of alexandra technopark, so there may be a large overhang there. their price might come down a fair bit.

since the expiry is in sep and nov, and they would need to inform the landlord 6 months in advance you could probably carry out an inquiry to the company whether there are any news in mar next year.

its probably not for the faint hearted but good management means it might be an opportunity.

Good reminder. Phase 1 of the new build-to-suit development for HP has been completed. So the rumours of HP moving to the new property is very strong. But no official news from them yet.

http://www.mapletreeindustrialtrust.com/~/media/MIT/Newsroom/Press%20Releases/2016/Oct/20161021_MIT%20completes%20Phase%20One%20of%20BTS%20development%20for%20HP.ashx

 

[Dividends Warrior]

ML, got consider adding Keppel dc reits??

I don't think ML is interested.

NAV of Keppel DC is $0.889

Based on today's closing price of $1.24, that's a huge 39% premium to NAV!

 

[[M]aiev]

I don't think ML is interested.

NAV of Keppel DC is $0.889

Based on today's closing price of $1.24, that's a huge 39% premium to NAV!

Yeah, why should I pay the premium to this when there are much better reits which was trading close/equal to NAV.

 

[MasterLeong]

ML, got consider adding Keppel dc reits??

http://www.sharesinv.com/AJBU/

low market cap, not in STI 40 mid cap

and overvalued at 1.39 times book

 

[MasterLeong]

Yeah, why should I pay the premium to this when there are much better reits which was trading close/equal to NAV.

yup, now top grade retail and office assets selling at 0.8 to 1.1 times book... best time to hoot gao gao

 

[Dividends Warrior]

Yeah, why should I pay the premium to this when there are much better reits which was trading close/equal to NAV.

Absolutely. That's why I am looking at the NAV figures as I plan my *** for REIT fifo tmr.