[Official] REITs CD tracking thread

[matrix05]

Eagerly awaiting for Cambridge next Thurs. Thus far logistics REITs like Maple and Cache have reported increase in DPU.

This is the only reit that has over 1000 lots blocking the price.

 

[SpinFire]

This is the only reit that has over 1000 lots blocking the price.

Maybe some big fund divesting?

 

[Panerex]

Now $1.2 good time to enter?

Main business related to building condo? Got One launching at exit Changi tpe.

$1.2.

Is this referring to FCT?

Or another Fraser counter?

 

[Paul Lee]

Now $1.2 good time to enter?

Main business related to building condo? Got One launching at exit Changi tpe.

Fraser commercial.......... father company...

FCOT main business related to building condo?? And father company of FCT??

Sorry all, can't resist/

The company whose main business is property development is Frasers Centerpoint. The company is part of the F&N empire but has nothing to do with either FCT or FCOT.

FCT and FCOT are more sibling companies rather than father-son company.

 

[Dividends Warrior]

FCOT main business related to building condo?? And father company of FCT??

Sorry all, can't resist/

The company whose main business is property development is Frasers Centerpoint. The company is part of the F&N empire but has nothing to do with either FCT or FCOT.

FCT and FCOT are more sibling companies rather than father-son company.

I knew you would post. I was waiting for it. LOL!

 

[Panerex]

Ops... still got a link mah... relationship wrong only... hahaha

this link will be helpful

Frasers Centrepoint Limited

too bad, fraser centrepoint itself (parent coy) does not seem to be listed.

 

[Lost_Found]

this is so a joke...haha

 

[IishAcrone]

hi guys, i am a noob in this, and i am holding out in investing in reits due to when reits wants to acquire new assets, high chance it will rights subscription and dilute shareholder holding unless for those who have the money to subscribe to the rights.

another thing i am not sure is, with the regulation to distribute 90% income, left with the 10% , is that 10% sufficient to service the loans? have not look at the reports of any company yet.

 

[Paul Lee]

hi guys, i am a noob in this, and i am holding out in investing in reits due to when reits wants to acquire new assets, high chance it will rights subscription and dilute shareholder holding unless for those who have the money to subscribe to the rights.

Yes. Rights issue will dilute your shareholding but let me ask you a simple qn: Are you planning to be a substantial unitholder of a REIT? If like the majority of us, you are going to be a super minority, does it really matter if you stake in the REIT is reduced from 0.0000000001% to 0.00000000005%??

And just becos a REIT din issue any rights does not mean your stake is not diluted over the years. Suntec has not have a single rights issue since listing. But your stake would have diluted over the years due to the many placement carried out and units issue to the REIT manager in lieu of management fee.

Rights issue by itself is OK as long as the DPU continue to grow post-rights issue. You should be more worried if a right issue end up giving u less and less DPU.

There are many way for a REIT to raise funds for asset acquisitions. Rights issue are just one of them.

another thing i am not sure is, with the regulation to distribute 90% income, left with the 10% , is that 10% sufficient to service the loans? have not look at the reports of any company yet.

I'm not sure if you are asking about interest payment or loan repayment when you say 'service the loan'.

Finance cost + trust expense are deducted from net property income before distributing to untiholders. So interest repayment is not an issue.

As for loan repayment, REIT typically does not repay the loan but re-financed it; or they issue bonds to finance loans that are due. This is the #1 reason why those on the anti-REIT camp says REIT is unsustainable and refuse to invest in them.

 

[Paul Lee]

The one that quietly announced it result.

Starhill Gbl DPU 1.11c
Payable 28 Nov
Ex-Date 2 Nov

 

[Dividends Warrior]

The one that quietly announced it result.

Starhill Gbl DPU 1.11c
Payable 28 Nov
Ex-Date 2 Nov

Thanks Paul.

Ya. Quiet indeed. No fireworks. No fanfare. LOL!

 

[fbb005]

wa looks like u are on a spree to buy all the CD stocks now ah. lol

sorry, I wrote wrongly
missed out the word "no"..

 

[IishAcrone]

Yes. Rights issue will dilute your shareholding but let me ask you a simple qn: Are you planning to be a substantial unitholder of a REIT? If like the majority of us, you are going to be a super minority, does it really matter if you stake in the REIT is reduced from 0.0000000001% to 0.00000000005%??

And just becos a REIT din issue any rights does not mean your stake is not diluted over the years. Suntec has not have a single rights issue since listing. But your stake would have diluted over the years due to the many placement carried out and units issue to the REIT manager in lieu of management fee.

Rights issue by itself is OK as long as the DPU continue to grow post-rights issue. You should be more worried if a right issue end up giving u less and less DPU.

There are many way for a REIT to raise funds for asset acquisitions. Rights issue are just one of them.



I'm not sure if you are asking about interest payment or loan repayment when you say 'service the loan'.

Finance cost + trust expense are deducted from net property income before distributing to untiholders. So interest repayment is not an issue.

As for loan repayment, REIT typically does not repay the loan but re-financed it; or they issue bonds to finance loans that are due. This is the #1 reason why those on the anti-REIT camp says REIT is unsustainable and refuse to invest in them.

Thanks a lot for the explanation !!!! Appreciated deep deep

 

[lzydata]

Thanks Paul.

Ya. Quiet indeed. No fireworks. No fanfare. LOL!

Actually, which REIT announces its results with fireworks and fanfare? You have an active imagination

 

[lzydata]

hi guys, i am a noob in this, and i am holding out in investing in reits due to when reits wants to acquire new assets, high chance it will rights subscription and dilute shareholder holding unless for those who have the money to subscribe to the rights.

another thing i am not sure is, with the regulation to distribute 90% income, left with the 10% , is that 10% sufficient to service the loans? have not look at the reports of any company yet.

Great reply by Paul. Let me just add that there seem to be many people out there with a vendetta against REITs. Rubbish ideas such as rampant rights issues making REITs unprofitable for investors persist even after being debunked again and again.

So don't assume the conventional wisdom is true. Work out the numbers for yourself and see if a given REIT like Suntec has been a good investment. IPO in Dec 2004 at price $1, total distributions of 72c since, current price about $1.60. Of course, past performance does not guarantee future results.

 

[lzydata]

SINGAPORE: The Singapore real estate investment trust (REIT) market is up about 40 per cent this year -- double the returns in major REIT markets like the US and Japan.

While returns and yield spreads on Singapore REITs may be the best in the world, some analysts said the market could become over-invested

...
Some analysts said REITs may be an over-invested asset class.

Excluding other stapled securities and business trusts, such as Hutchison Port Holdings Trust, the REIT market in Singapore has a market capitalisation of around US$38 billion. That is up more than three times from its post-Lehman crisis bottom in 2008.

Terence Wong, executive director at DMG & Partners Research, said: "There is a risk of the sector being over-owned, since everybody wants a piece of the pie right now. We've seen that in 2006 and 2007, where REITs were seen very much as a growth stock. And I think that's the danger.

"Right now, we're seeing the same thing, with the REITs rising about 40 per cent so far this year. When complacency sets in, if the party ends, I think a lot of people will get hurt."

- S'pore REIT market on the rise, but risks remain - Channel NewsAsia

The article itself is fine, but the headline has it wrong. Something does not become less risky after it rises a lot, it becomes more risky.

 

[limitation]

Wah..CDLHTrust dropped until $1.995 from its opening of $2.07 sia..after their results are out tis morn..maybe can buy some to keep now? Hmm..

 

[Wannabe Richer]

Wah..CDLHTrust dropped until $1.995 from its opening of $2.07 sia..after their results are out tis morn..maybe can buy some to keep now? Hmm..

Boom and there go my gains

 

[lzydata]

Boom and there go my gains

I try not to take daily movements too seriously, but today's interesting. The FTSE ST Real Estate Investment Index i.e. REITs underperformed the STI by 2%.

 

[doody_]

I try not to take daily movements too seriously, but today's interesting. The FTSE ST Real Estate Investment Index i.e. REITs underperformed the STI by 2%.

Seeing a lot of red for REITs today..