*Official* MasterLeong Thread

[strangerjun]

http://sbr.com.sg/commercial-property/news/s-reits-stay-resilient-should-interest-rate-spike-mas

sharing a wols news to alleviate some fears.

 

[MasterLeong]

its like how people say KC will go to $4 and SCI will go to $2 or lesser

people who are fearful will never board the boat

drop 10% they will say it will drop another 10%... they keep waiting until the boat eventually leaves port

 

[cronoficator]

hope all prices dip until mid dec. then can huat with year-end bonus

 

[Layers]

Same as ION. Would be good if can be part of CMT.

Hope jewel be aquired by cmt in the future after it is build. But I doubt so. CAG confirm hug deep deep

AAReit finally hit my cost price. 1.31
Wait until neck long sia..

Flat gain for me . Well no lose a most impt

Sent from Sony E6853 using GAGT

 

[MasterLeong]

hope all prices dip until mid dec. then can huat with year-end bonus

Stocks already so cheap lol

 

[Layers]

Interest rate rise unlikely to hit Reits badly: MAS

Rising interest rates and a looming over-supply in the property market may affect real estate investment trusts (Reits) but the market will stay healthy.

That was the finding of a stress test on the sector by the Monetary Authority of Singapore (MAS), which noted that Reits listed here have enough earnings to absorb the impact of higher interest rates even amid challenging conditions.

Investors like Reits for their stable yield. The sector's assets have been growing at an annual average of around 7.8 per cent since 2013 and accounted for about 7.9 per cent of total market capitalisation on the Singapore Exchange in the third quarter.

However, as Reits in general rely on debt to bankroll their property acquisitions, higher interest rates may lead to a larger financial burden. Their income could also be affected as rental demand could be hit by large amounts of new supply coming on the market.

There will be 376,000 sq m of office space completed next year, up 292 per cent from the fourth quarter this year, while supply in the industrial sector will grow 157 per cent to 2.17 million sq m.

The MAS stress test assessed the resilience of Reits in a situation where their earnings before interest, tax, depreciation and amortisation fell 35 per cent while interest rates rose three percentage points.

The result showed that office, industrial and retail Reits would still be able to generate earnings that were at least enough to cover their interest expense.

Still, Reits may have to trim their dividend payouts, given the economic headwinds and surge of new supply until 2018.

"Investors should therefore exercise caution in their search for yield in the current low interest rate environment," the MAS cautioned.

Wong Wei Han

Correction note: An earlier version of the story stated that office, industrial and retail Reits would still be able to generate earnings that were at least 1.8 times the interest expense. It has been corrected to say that earnings were at least enough to cover their interest expense.

Sent from Sony E6853 using GAGT

 

[birdypig]

Boarded MCT @1.415

 

[MasterLeong]

Boarded MCT @1.415

Welcome on board! ^^

 

[derrickgyn]

Noob question: how do people predict the impact of a particular event on stock prices? For example, was it possible for ppl to tell that this OPEC deal would have 1) affected o&g counter prices and 2) to this extent? What else much be factored in? For e.g. i can tell that the long term rally is dependent on compliance with the deal so if the nations start playing punk prices will continue falling. What about the impact of non-opec oil producing countries?

Art or science, essentially? Thanks in advance.

 

[strangerjun]

Noob question: how do people predict the impact of a particular event on stock prices? For example, was it possible for ppl to tell that this OPEC deal would have 1) affected o&g counter prices and 2) to this extent? What else much be factored in? For e.g. i can tell that the long term rally is dependent on compliance with the deal so if the nations start playing punk prices will continue falling. What about the impact of non-opec oil producing countries?

Art or science, essentially? Thanks in advance.

you see brexit and trump victory. Different analysts say different things. In the end, the outcome and estimates very different. Definitely not science.

 

[MasterLeong]

Noob question: how do people predict the impact of a particular event on stock prices? For example, was it possible for ppl to tell that this OPEC deal would have 1) affected o&g counter prices and 2) to this extent? What else much be factored in? For e.g. i can tell that the long term rally is dependent on compliance with the deal so if the nations start playing punk prices will continue falling. What about the impact of non-opec oil producing countries?

Art or science, essentially? Thanks in advance.

I learnt not to worry too much about macro news

Focus instead on picking good companies at cheap prices

 

[MasterLeong]

The result showed that office, industrial and retail Reits would still be able to generate earnings that were at least enough to cover their interest expense.

Healthcare Reit cannot ar, why they not included?

Monday can sell parkwaylife reit/first reit to me liao ma?

Note: Not I say they cannot, it is MAS never talk about healthcare REIT.

Guess only a few healthcare reit ma

Those 3 are the most common reit

I would avoid industrial reits

 

[MasterLeong]

Noob question: how do people predict the impact of a particular event on stock prices? For example, was it possible for ppl to tell that this OPEC deal would have 1) affected o&g counter prices and 2) to this extent? What else much be factored in? For e.g. i can tell that the long term rally is dependent on compliance with the deal so if the nations start playing punk prices will continue falling. What about the impact of non-opec oil producing countries?

Art or science, essentially? Thanks in advance.

the OPEC deal was actually straight forward

if no deal = oil to remain low... as everyone pump a lot of oil out to make more revenues

if got deal = oil supply is controlled and reduced, thus leading to higher demand and higher oil prices

higher oil price = good for all oil and marine related stocks

 

[MasterLeong]

"The MAS stress test assessed the resilience of Reits in a situation where their earnings before interest, tax, depreciation and amortisation fell 35 per cent while interest rates rose three percentage points.

The result showed that office, industrial and retail Reits would still be able to generate earnings that were at least enough to cover their interest expense.

Still, Reits may have to trim their dividend payouts, given the economic headwinds and surge of new supply until 2018."

this is a very good point

WEAK REITS will see LOWER DPU ahead

GOOD QUALITY REITS may be able to maintain DPU or see less reduction to DPU


for now, i will only purchase the HIGHEST quality reits

CCT/CMT/SUN/FCT/MCT all high quality reits that have a track record of maintain DPU during downturns in 2008 2012

 

[Pesantkie]

Thank You Master Leong and other users who have contributed to this thread. I have learnt a lot by reading this thread. Sadly I am too young to invest , I am only 16 and going to turn 17.

I will definitely save up $120 or more per month (except school holiday) so I can invest when I am able to sign up for a brokerage account!

 

[strangerjun]

The result showed that office, industrial and retail Reits would still be able to generate earnings that were at least enough to cover their interest expense.

Healthcare Reit cannot ar, why they not included?

Monday can sell parkwaylife reit/first reit to me liao ma?

Note: Not I say they cannot, it is MAS never talk about healthcare REIT.

Median ICR for s-reits will remain at 4 times after raising interest rates by 3%.--> s-reits in general

S-REITs that are exposed to the domestic office, industrial, and retail sectors could face some near term challenges as the martket absorbs the supply of new space coming on stream between 2016 to 2018. But under a severe stress scenario where EBITDA decline by 35% and interest rates increase by 3 percentage points, the median ICRs for these Office, Industrial and Retail S-REITs remain healthy at around 1.9, 2.4 and 1.8 times respectively. --> domestic office, industrial, and retail s-reits

Nowhere they say healthcare reits cannot what. Why you draw your conclusion like that?

 

[lewissac]

Sad... my fund didn't make it on time to my pre-funded acc. Kinda fed-up with my TR. Yaya papaya type. Zzz..

If tml funds in, can i still buy?

 

[MasterLeong]

Sad... my fund didn't make it on time to my pre-funded acc. Kinda fed-up with my TR. Yaya papaya type. Zzz..

If tml funds in, can i still buy?

time to change TR then.... you are the customer, u are the boss!

 

[MasterLeong]

Thank You Master Leong and other users who have contributed to this thread. I have learnt a lot by reading this thread. Sadly I am too young to invest , I am only 16 and going to turn 17.

I will definitely save up $120 or more per month (except school holiday) so I can invest when I am able to sign up for a brokerage account!

wait for age 18 can open young investor account, your time will come... no worries

 

[strangerjun]

Sad... my fund didn't make it on time to my pre-funded acc. Kinda fed-up with my TR. Yaya papaya type. Zzz..

If tml funds in, can i still buy?

why like that one? which broker?