*Official* MasterLeong Thread

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MasterLeong

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Have to downvote this. :(

Perm disability is no joke. Especially to a child. :(

I a father of three and I would not change anything for my child safety and health.

I wonder how the taxi driver compensate the kid
Or is it insurer or company pay the 1.5mil?
 

MasterLeong

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Have to downvote this. :(

Perm disability is no joke. Especially to a child. :(

I a father of three and I would not change anything for my child safety and health.

Your kids how old?
Got buy insurance for all 3 of them ma
In future can pass down your portfolio to them
 

madtari

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Hi Guys, morning! Its me again with some question on REITs... :s13:

https://ig.ft.com/sites/when-rates-rise/#in-depth-analysis

Saw this article about Federal Interest Rates projection... what if IR really increase to 3% by 2018? How much do you guys think that will impact on DPU and prices of REITs? The recent sell off in REITs is to price in the upcoming hike in Dec 2016, which should not be expected to be more than 50 basis points (from the current 0.5% to 0.875%?). I can't imagine how much will REITs fall when it eventually increases to 3%... or if it increase gradually enough, will the fall be more subtle?

The reason for asking is bcos I'm a long term investor who wishes to collect div over long time frame and not to worry so much about price erosion. Currently on my list are the 3 banking and 3 telco counters as I believe the 3 banks and Singtel is pretty resilience to price erosion and they provides pretty decent yield. And I think REITs will be more risky to hold long term that's why ppl like DW changed his investment style to include FIFO instead of hugging stocks for passive div?
 
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Genosis

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Hi Guys, morning! Its me again with some question on REITs... :s13:

https://ig.ft.com/sites/when-rates-rise/#in-depth-analysis

Saw this article about Federal Interest Rates projection... what if IR really increase to 3% by 2018? How much do you guys think that will impact on DPU and prices of REITs? The recent sell off in REITs is to price in the upcoming hike in Dec 2016, which should not be expected to be more than 75 basis points (from the current 0.25% - 0.5% to 0.875%?). I can't imagine how much will REITs fall when it eventually increases to 3%... or if it increase gradually enough, will the fall be more subtle?

The reason for asking is bcos I'm a long term investor who wishes to collect div over long time frame and not to worry so much about price erosion. Currently on my list are the 3 banking and 3 telco counters as I believe the 3 banks and Singtel is pretty resilience to price erosion and they provides pretty decent yield. And I think REITs will be more risky to hold long term that's why ppl like DW changed his investment style to include FIFO instead of hugging stocks for passive div?

In general, the REIT managers have been trying to shift more debts to fixed rates.....as far as I know, PLife has the lowest

Those REITs with majority of their debts in fixed rates will be more resilient against a rate hike...

Second factor to consider will be the alternatives to REITs......fixed deposits, SSB, S'pore govt bonds. Will the interest rates for these alternative instruments become attractive enough for investors to switch from REITs/dividend stocks?

As for holding long term, IMO is to go for experience management with solid track record, quality asset portfolio and preferably lots of freehold properties...:)
 
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starfish.starfish

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Fusion!!! :s13:

tumblr_o7hs9uOJTs1ruzjxno1_500.gif

The bromance is soooo touching. Kekekeke
:D :D :D
 

ravenintiate

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Hmm realise there is a lot of love for commercial, retail and medical REITs here. Any love for industrial and hospitality REITs?

What you guys think about Fraser log?
 

Genosis

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Gg.. if bond traders massive short.

Thankfully, I am not at the age when I need bonds in my portfolio yet.....:s13: so I dun really study them in great detail

But eventually will have to when I enter my 60s...:(
 

Genosis

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Hmm realise there is a lot of love for commercial, retail and medical REITs here. Any love for industrial and hospitality REITs?

What you guys think about Fraser log?

I also love logistics and industrial.....;)

FLT is alright......low gearing, majority of properties are freehold and young, triple net-lease structure with annual rental increment, long WALE, diversified tenants, located at major cities (Australia is a big country so logistics demand is still growing to transport goods around)
 

MasterLeong

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Hi Guys, morning! Its me again with some question on REITs... :s13:

https://ig.ft.com/sites/when-rates-rise/#in-depth-analysis

Saw this article about Federal Interest Rates projection... what if IR really increase to 3% by 2018? How much do you guys think that will impact on DPU and prices of REITs? The recent sell off in REITs is to price in the upcoming hike in Dec 2016, which should not be expected to be more than 50 basis points (from the current 0.5% to 0.875%?). I can't imagine how much will REITs fall when it eventually increases to 3%... or if it increase gradually enough, will the fall be more subtle?

The reason for asking is bcos I'm a long term investor who wishes to collect div over long time frame and not to worry so much about price erosion. Currently on my list are the 3 banking and 3 telco counters as I believe the 3 banks and Singtel is pretty resilience to price erosion and they provides pretty decent yield. And I think REITs will be more risky to hold long term that's why ppl like DW changed his investment style to include FIFO instead of hugging stocks for passive div?

U should look at reits and banks at 2005 to 2009 annual reports when rates were 2-5%

In short banks were more profitable with higher net interest margins
Reits would pay higher cost of debt but rents would be higher too
 

strangerjun

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Comfort taxi 2.47 liao! Hope Capitaland also move!

:s12::s12:
 
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MasterLeong

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Hi Guys, morning! Its me again with some question on REITs... :s13:

https://ig.ft.com/sites/when-rates-rise/#in-depth-analysis

Saw this article about Federal Interest Rates projection... what if IR really increase to 3% by 2018? How much do you guys think that will impact on DPU and prices of REITs? The recent sell off in REITs is to price in the upcoming hike in Dec 2016, which should not be expected to be more than 50 basis points (from the current 0.5% to 0.875%?). I can't imagine how much will REITs fall when it eventually increases to 3%... or if it increase gradually enough, will the fall be more subtle?

The reason for asking is bcos I'm a long term investor who wishes to collect div over long time frame and not to worry so much about price erosion. Currently on my list are the 3 banking and 3 telco counters as I believe the 3 banks and Singtel is pretty resilience to price erosion and they provides pretty decent yield. And I think REITs will be more risky to hold long term that's why ppl like DW changed his investment style to include FIFO instead of hugging stocks for passive div?

The risk free rate will affect returns on all asset classes
Now 10 year risk free bond pays 3% reits 7% the 4% premium is widest seen so far
Back in 2006-08 when i was in the market, yield on reits were around same level too but risk free bonds were priced at 4-5%, meaning the risk premium was only 2-3%

In short to say, market has priced in the rate hikes already
 
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