[Official] REITs CD tracking thread

[simon_84]

independent adviser also draw comm...

what makes u think there's no conflict of interest?

at least they won't just show you their representative company insurance policies.
better to have a wide range of insurance policies from different insurance companies to compare and contrast with than a single entity.

 

[Keverus]

at least they won't just show you their representative company insurance policies.
better to have a wide range of insurance policies from different insurance companies to compare and contrast with than a single entity.

they are still sales people who draw comm.

put urselves in their shoes.

they will definitely sell u whatever product that gives the highest comm.

but anyway, sidetrack too far riao, this thread is abt REITS.

 

[simon_84]

they are still sales people who draw comm.

put urselves in their shoes.

they will definitely sell u whatever product that gives the highest comm.

there is always an easier option to just buy term and invest the rest especially for those who think that they can beat the market.
low premium, high coverage till 65.
there are high yield reits such as industrial, logistics and commercial, however their price weakness is not to my liking.

besides the more commission based products are probably life and investment linked policies, just avoid them if their high premium is not your cup of tea.

 

[gaara666]

there is always an easier option to just buy term and invest the rest especially for those who think that they can beat the market.
low premium, high coverage till 65.
there are high yield reits such as industrial, logistics and commercial, however their price weakness is not to my liking.

besides the more commission based products are probably life and investment linked policies, just avoid them if their high premium is not your cup of tea.

i have been reading the posts here cautioning against loading up too much REITS and i hv also seen the price weakness of REITS compared to other counters like the telcos, SATS etc. i have tried to reduce the % of REITS in my portfolio but somehow when i look at my spreadsheet, its hard to ignore the high div yield of REITS, especially when i intend to keep a bunch for dividend accumulation. As of now, REITS accounts for 55% of my portfolio and i intend to keep it this way, of course keeping a close eye on the market trend meanwhile

 

[standarture]

But reits seldom have big jumps in stock price right?

Big jumps, no. But some REITs have appreciated quite abit over the last two years. Mostly around 15-30%. Some have performed pretty well, like Capitamalls, not surprisingly though. 56% increase over the past two years. What I'm saying is don't look at dividends. In fact, don't give a damn about them. Dividends hardly qualify as passive income. Just treats REITs like a normal stock.

 

[vinciee88]

But reits seldom have big jumps in stock price right?

Look at "quality" REITs IPO price vs market price now. You get the answer to your question already

Reits generally do not have much growth but as their distribution income goes up(generally due to more tenants/rental escalation/yield accretive properties), their market price goes up as well.

 

[aceirus]

Dividends hardly qualify as passive income. Just treats REITs like a normal stock.

Curious. What makes you view dividends hardly qualify as passive income? Isn't having your money work for you by getting returns without you labouring for it a form of passive income? I think REITS offer decent returns generally in the 5-10% range.

I don't think getting rental income from property can go as high as that. Unless you are a business owner that had been systemized and doesn't require you to take care of it too much.

 

[Keverus]

Curious. What makes you view dividends hardly qualify as passive income? Isn't having your money work for you by getting returns without you labouring for it a form of passive income? I think REITS offer decent returns generally in the 5-10% range.

curious about this as well.

 

[Paul Lee]

Cmt ceo mentioned in the recent agm that they won't acquire ion due to the cyclic nature of retail shopping in orchard especially during economic downturn and i do agreed with him on his opinion.

What the hell is he talking about? So Plaza Singapura and The Atrium@Orchard dun count?

Look at the shopping malls in Orchard that is owned by REITs - Ngee Ann, Paragon, Wisma, Gallery etc... Are they really that cyclic?

Why dun he just tell it like it is. The reason why CMT wont acquire Ion is that its the golden goose for CapLand; and the reason why CapLand wont sell.

Its the same with The Centerpoint and Frasers. FCT keep talking about The Centerpoint as a pipeline asset since its IPO and after nearly 10 yrs, they rather acquire all the sub-urban malls than The Centerpoint because its a golden goose for Frasers.

 

[Middle-C]

I saw a report I think now office or healthcare REIT better.. Follow by industrial or logistic and finally retail REIT. Not sure but up to how individual's view on the trend ba.

just dont forget to diversify =D

 

[Chua Zhiming]

Anyone else holding Sabana?

Just got letter from them regarding DRP, anyone going for new units instead of cash payout? new units issued at 1.022 hmmm

 

[Opps-gal]

Anyone else holding Sabana?

Just got letter from them regarding DRP, anyone going for new units instead of cash payout? new units issued at 1.022 hmmm

I holding sabana and I discard the letter already. I never apply for new units as will get odd lots.

 

[Cookie Muncher]

just curious why suntec got 2 dividend payments? one in apr, one in may

 

[shroudedfigure]

just curious why suntec got 2 dividend payments? one in apr, one in may

Suntec had a private placement of 218069000 new units which started trading on the 27th March 2014. Thus, the first dividend payment was for the existing shareholders (excluding the new units from the placement) of SUNTEC REIT for the period 1st January 2014-26th March 2014. The second dividend payment was for the shareholders (including the new units from the placement) for the period from 27th March 2014-31st March 2014.

 

[Cookie Muncher]

Suntec had a private placement of 218069000 new units which started trading on the 27th March 2014. Thus, the first dividend payment was for the existing shareholders (excluding the new units from the placement) of SUNTEC REIT for the period 1st January 2014-26th March 2014. The second dividend payment was for the shareholders (including the new units from the placement) for the period from 27th March 2014-31st March 2014.

Thx for the info

 

[teehee93]

Recently there has been much anticipation that interest rates will rise, read in newspaper 'Money' section that the next few months there is gna be predicted rise in interest rates. REITS will be affected by it as I have now learned.

However I don't think that all are gna be affected equally, there is sure to be some REITS that wont be affected badly, what do you guys think?

 

[teerance85]

This interest rates thing has been going on since sept last year. By now, most reit managers would have secured loans, albeit at a fixed rate of a certain tenure.

 

[Bedokian]

This interest rates thing has been going on since sept last year. By now, most reit managers would have secured loans, albeit at a fixed rate of a certain tenure.

Agreed. The current prices would have factored all these in.

 

[Wood4]

Standard Chartered Research (StanChart) warned that the rising supply of business park space in Singapore is likely to depress rents in the long term, including those at warehouses, affecting yields for investors of industrial REITs.
Subsequently StanChart issued calls in a research note on 20 May to sell industrial Singapore-listed industrial REITS, Ascendas REIT (SGX:A17U), Mapletree Industrial Trust (SGX:ME8U) and Mapletree Logistics Trust (SGX:M44U), predicting an average downside potential of between 2% and 15% to its new price targets.
StanChart also expects the average distribution per unit (DPU) for the largest industrial REITs to fall at a 3.5 per cent compounded annual growth rate (CAGR) over 2014 to 2016.
However the banks remain optimistic on Singapore office REITs, suggesting that office REITs listed in the city state are likely to offer higher dividend yields than industrial REITs.
StanChart issued a call to buy CapitaCommercial Trust (SGX:C61U), Suntec REIT (SGX:T82U) and Keppel REIT (SGX:K71U) citing upside potential of between 7% and 14%.
The bank estimates DPU CAGR of 9.6 per cent in 2014-16 for the Singapore office REITs and estimates an average DPU yield of 6.7 per cent in 2016, which would be 14 per cent higher than the three largest Singapore industrial REIT’s average DPU yield of 5.9 per cent.
The predictions are in line with reports from Ascendas REIT and Mapletree Industrial Trust which have reported falling occupancy for their respective industrial properties.
Supply of business parks in Singapore is expected to rise by about 9% per annum between 2014-2014 and causing rents to fall by about 22%. Warehouse rents are also expected to slip by about 14%.
Analysts have pointed to deliberate population policies to slowdown the intake of foreign workers as being one of the factors that could have led to slower uptake of industrial spaces as businesses struggle with manpower issues.

 

[hindsight]

Most of my reits all rocket 10+%, even after XD still rocket.

All the scaredy cats who sold reits a few months ago because "interest rates are rising" must be feeling extreme seller's remorse now.