[Official] REITs CD tracking thread

[sandwicher]

I'm still keen. Just that i need to be cautious with the deployment of my resources. Most of the reits which I'm keen in (CMT, PLife...) are still higher then my expected buy price.

Same. I'm just waiting for the impending rate hike to accumulate more.

 

[Bedokian]

The interest in REITs is always there.

Now that the CD period is over, most REIT investors are waiting for the dividends to come in.

And with it, probably would go hunting for more counters, now that the market is heading downwards.

 

[strangerjun]

The five Office REITs listed on SGX averaged an aggregate leverage ratio of 36.0% as of the quarter ended 31 March 2015. Of the five, the three trusts with the highest leverage ratios were Keppel REIT, OUE Commercial Real Estate Investment Trust, and Frasers Commercial Trust.

Office REITs are companies or trusts engaged in the acquisition, development, ownership, leasing, management and operation of office properties. The five Office REITs have a combined market capitalisation of SGD10.0bn, trade at an average price-earnings ratio of 8.4, and maintain an average dividend yield of 5.3%. They also maintain an average dividend yield of 5.3%. This compares with the Singapore Fixed Income (SFI) Index yield of around 2.98%.



Aside from dividend yields, location and type of real estate assets, investors can view REITs according to their aggregate leverage ratio and the tenure of debt. The aggregate leverage ratio is the ratio of the total debt over deposited properties, where deposited properties amount to the total asset value of a trust. These ratios vary across the REIT Sector.

The five Office REITs averaged an aggregate leverage ratio of 36.0% as of the quarter ended 31 March 2015, 1.6% higher than the average for the seven Industrial REITs, as highlighted in a previous market update. Of the five, the three trusts with the highest ratios were Keppel REIT, OUE Commercial Real Estate Investment Trust, and Frasers Commercial Trust.

On July 2nd, the Monetary Authority of Singapore (MAS) implemented some changes on the leverage limits of REITs. The leverage limit imposed on a REIT was increased to 45% from 35% of the REIT’s total assets, but the REIT is no longer allowed to leverage up to 60% with a credit rating. These changes will provide a REIT with greater operational flexibility to rejuvenate its maturing portfolio of assets.

The five trusts averaged a price decline of 4.6% in the year thus far, and a negative dividend-adjusted return of 2.0%; this brought their one-year total return to 2.9%. In terms of dividend-boosted returns, the best performers year-to-date were Frasers Commercial Trust (+12.0%), OUE Commercial Real Estate Investment Trust (+0.3%), and IREIT Global (-5.0%).



Main Office REITS listed on SGX SGX Code Aggregate Leverage Ratio
CapitaLand Commercial Trust C61U 29.9
Keppel REIT K71U 42.4
Frasers Commercial Trust ND8U 37.2
OUE Commercial Real Estate Investment Trust TS0U 38.6
IREIT Global UD1U 31.8
Average 36.0
Source: Company Data



Meantime, the 33 REIT trusts maintain an average indicative dividend yield of 6.2%. In the year-to-date, they averaged a 0.8% price gain, with dividends boosting average returns to 4.1%. The 33 constituents in the FTSE ST REIT Index have a combined market capitalisation of SGD64.5bn. In the year-to-date, the averaged a 0.8% price gain, with dividends boosting returns to 4.1%. Over the last 12 months, they averaged a return of 6.4%. These trusts trade at an average price-earnings ratio of 13.5%, and maintain an average indicative dividend yield of 6.2%, which is double the Singapore Fixed Income (SFI) Index yield of around 2.99%.

The five best performers among the 33 trusts in terms of total returns in the year thus far were: Frasers Commercial Trust (+16.6%), Soilbuild Business Space REIT (+15.5%), Ascendas India Trust (+14.0%), CDL Hospitality Trusts (+12.7%), and Frasers Hospitality Trust (+12.4%). They averaged a 10.5% price gain in the year-to-date and maintain an average indicative dividend yield of 6.0%.

The five best performers in terms of total returns in the year thus far were Frasers Commercial Trust, Soilbuild Business Space REIT, Ascendas India Trust, CDL Hospitality Trusts, and Frasers Hospitality Trust



- See more at: http://www.ftseglobalmarkets.com/ne...eturns-ytd-says-sgx.html#sthash.6gFWr8PC.dpuf

 

[lunafan]

http://sbr.com.sg/commercial-proper...ingapores-high-yielding-s-reits-analysts-warn


The sun is setting on Singapore's high-yielding S-REITs, analysts warn

Total returns will be near zero until 2016.

Investors should think twice before snapping up shares of Singapore REITs, a report by OCBC revealed.

“Over the last seven years of ultra-low rates, investing in S-REITs has been fruitful for many. However, against the backdrop of rising rates and declining sector DPU growth, we foresee significant headwinds for the S-REITs sector ahead,” OCBC said.

The report highlighted that the sector's already muted DPU growth is forecasted to fall from 3.8% year-on-year toward the end of FY15 to just 2.2% toward the end of FY17.

As rates rise, OCBC said that markets are also likely to price the sector’s forward yield at 7.25% at the end 2016, compared to 6.32% at present.

“Our quantitative analysis show that investors in the sector will reap almost zero total returns from now to 2016 and - much worse - may experience an rapid initial capital loss from falling unit prices before making it up to par from dividends collected. Finally, the S-REITs sector can suffer significant declines during periods of high market volatility, and we see additional downside bias if the Fed lift-off is accompanied by a VIX spike ahead,” the report warned.

 

[wahkao3]

http://sbr.com.sg/commercial-proper...ingapores-high-yielding-s-reits-analysts-warn


The sun is setting on Singapore's high-yielding S-REITs, analysts warn

Total returns will be near zero until 2016.

Investors should think twice before snapping up shares of Singapore REITs, a report by OCBC revealed.

“Over the last seven years of ultra-low rates, investing in S-REITs has been fruitful for many. However, against the backdrop of rising rates and declining sector DPU growth, we foresee significant headwinds for the S-REITs sector ahead,” OCBC said.

The report highlighted that the sector's already muted DPU growth is forecasted to fall from 3.8% year-on-year toward the end of FY15 to just 2.2% toward the end of FY17.

As rates rise, OCBC said that markets are also likely to price the sector’s forward yield at 7.25% at the end 2016, compared to 6.32% at present.

“Our quantitative analysis show that investors in the sector will reap almost zero total returns from now to 2016 and - much worse - may experience an rapid initial capital loss from falling unit prices before making it up to par from dividends collected. Finally, the S-REITs sector can suffer significant declines during periods of high market volatility, and we see additional downside bias if the Fed lift-off is accompanied by a VIX spike ahead,” the report warned.

2015 Jan-Some SGX property stocks present good value now

There are some good cheap SGX property stocks right now and they are good value. This is because of the cooling measure, prices came down and you have a golden opportunity to pick them up on the cheap


but REITs are not good value. They are fairly priced. in investment, we dont buy assets at fair price, we buy assets are undervalue. So REITs dont present good value

as usual, i can be wrong, so do your own homework! Dont follow my tips blindly

Source:http://forums.hardwarezone.com.sg/s...sent-good-value-now-4948596.html#post91555931

 

[crusainte]

I am faced with a dilemma to cut lost or keep doing DCA because I have been DCA-ing the reits counters from last year's high =(((

Does anyone have advice on this?

 

[Dyhalt]

Always have a war chest ready for opportunities when valuation is cheap.

In my humble opinion, for REITs in Industrial, office, hospitality sectors, investors should be more wary because trend is against these REITs to a greater scale. (Slowing economic growth, slowing tourism growth, raising interest rate, more office/hotel rooms in coming years in SG)

For healthcare, retail, residential reits, they are more stable because of the more robust lease terms, but you will have to evaluate on a case by case basis to see their location & leverage.

Cheap things can get cheaper, so if REITs start to fall below their NAV and have yields above 7%, you can start to grab some when its valuations are cheap, but now is still far from the time to go all in.

Cheers

 

[lunafan]

I am faced with a dilemma to cut lost or keep doing DCA because I have been DCA-ing the reits counters from last year's high =(((

Does anyone have advice on this?

depends on your holding power
also depends on the quality of the asset that the reit is holding, what category are they?
do you have any urgent need to cash out?
many things to consider

 

[SpeedingBullet]

I am faced with a dilemma to cut lost or keep doing DCA because I have been DCA-ing the reits counters from last year's high =(((

Does anyone have advice on this?

Need more details, what did you buy? At what price and what was ur initial thesis when investing in that particular REIT.

Anyways, this year is still an OK year but next year will see a huge uptick in residential and industrial property supply. Only in 2017 then it tapers down. Prepare to see further weakness in the general ppty mkt in SG.

 

[Bedokian]

I am faced with a dilemma to cut lost or keep doing DCA because I have been DCA-ing the reits counters from last year's high =(((

Does anyone have advice on this?

Do you have any non-REITs counters in your portfolio?

 

[Bedokian]

Up this thread. Most REITs are down. time for some bargain hunting.

 

[havetheveryfun]

Up this thread. Most REITs are down. time for some bargain hunting.

which reits are on your watchlist ?

im look at FCT , CMT, Keppel DC and Saizen

Lots people dislike Saizen due to their actions in the past but it has 7% yield and its share price has not dropped that much compared to other REITs in the recent bloodbath (maybe because it was already low to being with )

 

[Bedokian]

which reits are on your watchlist ?

im look at FCT , CMT, Keppel DC and Saizen

Lots people dislike Saizen due to their actions in the past but it has 7% yield and its share price has not dropped that much compared to other REITs in the recent bloodbath (maybe because it was already low to being with )

I am actually reducing my REIT portfolio by buying other equities, but the REIT prices now are very tempting. If buying in, I would be more into adding positions. FCOT and MGCCT (both vested) would be my first choice to add, followed by Suntec and SPH REIT (both vested as well), if given a choice.

 

[Perisher]

The irony is, the strong ones didn't drop to a bargain level while the weak ones don't interest me.

 

[Asphodeli]

which reits are on your watchlist ?

im look at FCT , CMT, Keppel DC and Saizen

Lots people dislike Saizen due to their actions in the past but it has 7% yield and its share price has not dropped that much compared to other REITs in the recent bloodbath (maybe because it was already low to being with )

Irony is I bought Saizen REIT at the start of 2015 and it's still relatively stable. LOL

Sent from Sony D5833 using GAGT

 

[havetheveryfun]

The irony is, the strong ones didn't drop to a bargain level while the weak ones don't interest me.

which are the strong ones that interest u ?

 

[havetheveryfun]

Irony is I bought Saizen REIT at the start of 2015 and it's still relatively stable. LOL

Sent from Sony D5833 using GAGT

yep that's why.. sometimes going "undercover" n not generate that much interest may be good...

but for this time of dividends.. the management is introducing scrip dividend scheme.. not sure how well received it is going to be... results for 1H just out today I think

 

[Tango62]

Saizen REIT DPU - 2.93 cents
Ex date - 27 Aug 2015
Pay date - 28 Sep 2015

 

[Pocoyoz]

cache $1

 

[rainbow123]

Irony is I bought Saizen REIT at the start of 2015 and it's still relatively stable. LOL

Sent from Sony D5833 using GAGT

LOL , you not alone . i also have Saizen .
Not really happy with the scripts they coming up . Going to just take the money .