Good point, bro.

I have asked the IR of Elite about these 17 properties. I think if the options are exercised, they will have a year to address this.
Get a new tenant or renegotiate with DWP. Or sell.

So I asked IR :

What about the 17 properties out of the 117 whose lease options were not removed?

What will happen to these properties?

Do we assume that the options will be exercised or are negotiations with the tenant still ongoing?

The answer:

You can buy SREiTs which are denominated in foreign currencies such as GBP, EURO and USD apart from the SGD.

You are out of touch.
Elite is paying 9% yield at its present price.

Normally it is SGD. But if you wish to diversify, you invest in GBP Reits like Elite Commercial Reit. EURO in IREIT Global, Cromwell or USD in Manulife, Kep Oaks, etc.

But before that, best to read up on SREITs first.

Go to page original post to start.
BTW SREITs is not for active trading. It's more for passive income from the nice dividends.

5.3 % is pretty small. In any case the lease has been extended to 2028 for a reduction is a good deal. This rent will be inflated along the way by the rent reviews in future.

i am more worried about the 20% of properties whose options have not been de geared yet.

Presently, even with a 10% reduction in DPU, we are still reaping 8% yield at this price, not withstanding the requirement to carry the AEI.
i am ok with this range of yields.

Updated presentation here: https://investor.elitecreit.com/newsroom/20...ZDHUGJ7E1.1.pdf

This post has been edited by prophetjul: Mar 2 2022, 10:57 AM

No. They are not subject to the 30% with holding tax presently as certain offshore corporate setups are mitigating this.

Maybe easier if you shoot the questions.
I have Elite. Its been pretty good thus far.

It's GBP. NOT SGD.

I am not familiar with Tiger brokers.
Presumably there will be some foreign someway.

Bro, If you do not subscribe to the calls, will this not dilute your holdings?

If the investments are accretive, there is no issue. Means more dividends.
I actually hate private placements more than rights issues. The former means you do not even have a choice! And it is normally given placed at large discounts.

Then you should not be in Reits. Since they have distribute 90% of their income, they will need funds from somewhere to grow.
Like i said, if it is accretive to the DPU, no complaints. It is similar to buying the stock for the first time. You need cash. Nothing is free

No. There is NO Singapore tax on dividends from SREITs.

Sorry for the mis type!

This post has been edited by prophetjul: Apr 2 2022, 11:10 AM

https://www.syfe.com/magazine/singapore-rei...ahead-for-2022/

S-REITs in Rising Rates
REITs, along with other capital intensive sectors, are sensitive to interest rates, given the impact on borrowing costs and yield spreads. S-REITs have been managing their interest rate exposures actively. According to SGX, on average, close to 75% of S-REITs’ current debts are either in fixed rates or hedged through floating-to-fixed interest rate swaps.

In addition, S-REITs currently have an average gearing ratio of 37%, comfortably below the regulatory threshold of 50%. Gearing ratio, which measures leverage, is calculated by dividing total borrowings by total assets. A lower gearing ratio below the threshold implies healthy balance sheets and that S-REITs can service their debt and still have room to raise more debt (if and when needed) for additional acquisitions or operations.

Looking at periods in the past where the Fed funds rate has increased along with the 3m SIBOR rate, the performance of S-REITs have been mixed.

During the taper tantrum of 2013, S-REITs fell by close to 17% over 9 months. In 2015, where global markets experienced a sell-off with the Greek debt default, a sharp fall in petroleum prices, and slowing growth in China, S-REITs fell 9% over 8 months.

However, from the time we saw the first rate hike in late 2015 to when the Fed funds rate hit 2.25% -2.5% (the highest in ten years), S-REITs delivered stellar performance of almost 73%.



So far this year, S-REITs have taken the first rate hike in March 2022 in stride, gaining 4.5% over the month ending March 31, 2022.

Good to have some historical facts during inflationary periods.
The rest is up to the individual to interpret these numbers.

Good thing i sold earlier. Getting a bit jittery.

Well. Even Fixed Deposits have risks.

During Asian Financial crisis, many Msian banks were forced to merge. Not sure which banks gained or lost at the time of the mergers. i think the smaller banks shareholders did better as they were gobbled up by the bigger banks.
those who actually went bankrupt probably none or very rare as another bank will come in to take over.

SREIts did not drop so much during this Ukraine crisis. i only managed to load a few on corrections after disposing of my EC world reit.

On defensive stocks whether thick or thin, try infrastructure stocks.