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 Singapore REITS, S-REITS

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cherroy
post Jul 22 2017, 12:39 PM

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QUOTE(elea88 @ Jul 22 2017, 11:29 AM)
so, in actual fact, if my cost is only .83.. and not .94.. my yield is much higher right?
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Although your yield is higher based on cheaper cost, we should always see the yield based on current market price.

Eg. reit DPU 8 cents, *assume DPU stays the same

Previous you bought at 0.80, your yield is 10%.
Current price 2.00, yield 4%.

For any decision making down the road, we should "see" the reit current yield is 4% to justify whether it is worth to hold on it or not, because by selling the reit you have 2.00, not 0.80 anymore.
Or in other word, the net worth of your holding is already 2.00, not 0.80, whereby you can utilise at anytime (by selling it) the 2.00 to generate more return.

cherroy
post Jul 23 2017, 12:31 PM

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QUOTE(Ramjade @ Jul 22 2017, 01:26 PM)
So the latest dividend we received is it 4% or 10% of what we put in?
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Since reit is a pseudo real estate investment.

Let take an example
You bought a house 100K last time, you rent out 10K pa. 10% yield

Now, the house value at 1 mil, the rental still 10K pa, but based on current market price, the yield is only 1%.

One should be happy until now as with the 10K received, the yield is 10% (very good yield already), so don't need to impose rental increment on tenant.

So should we see it is 10% or 1%?
It depends on one mindset.
If one still wants to see it as 10%, there is still nothing wrong but for current and forward looking, one should see the house currently has poor yield at 1%, aka the asset is not "productive" enough in investment world.
cherroy
post Jul 24 2017, 04:32 PM

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The selling volume of Cache is pretty high.
cherroy
post Jul 24 2017, 04:45 PM

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QUOTE(prophetjul @ Jul 24 2017, 04:34 PM)
Yeah...lots of selling pressure.

Notice the return of CAPITALL?
*
Ya.

Just read an investment bank coverage, that just gave a target price of 0.77. rclxub.gif
cherroy
post Jul 25 2017, 11:18 AM

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QUOTE(Hansel @ Jul 25 2017, 10:43 AM)
I developed an interest in Ascott REIT when they started acquiring assets in The USA. I started to 'replace my PNB Fixed-Priced funds with Ascott REIT' back in 2015.

I attended the AGM last year,... BUT when I saw a couple of things at the AGM, I decided to divest. I still held-on to 100 units today 'prove a point' to myself.

I moved the funds over to UMS, FLIT and PLife REIT.
*
Can you share the experience during the AGM which lead to the divestment decision.
Many thanks.

Having interest in Ascott, so wish to know more about it.
cherroy
post Jul 25 2017, 04:42 PM

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QUOTE(Hansel @ Jul 25 2017, 12:16 PM)
Well,... let me say first that some points below could be just becaue of me, not really affecting the quality of the REIT at all....

1) I saw the BOD was heavily protected by security-guards, personal body-guards. The last time I saw this was around a developer who took purchasers' money and couldn't deliver the houses. This fella has to walk around with heavy body-guards around him, and one day one of his body-guards betrayed him and his head was broken and needed stitching. So,... looks like same scenario here,...

2) The CEO was extra-friendly,... I must say, he mingled with shareholders,... BUT,.. well,... he looks real smart,.... I really don't think he will give more than what the the mkt gives to shareholders.

3) Ascott REIT is part of the Capitaland Group,... it could be just me,... but I feel that these big SG conglomerates are very detailed in their investment things,... they will count to the penny in their ventures. So, I don't think Capitaland will give investors more than investors deserved. These SG companies don't miss,....

Sure, if we wanted safety, then can go with Ascott REIT,... but if we wanted more, than there are other better companies out there,.... errm,... how to say this huh ?? IT's too well-run,... so,.. will not give more,... Singaporeans count every penny,... that's why less corruption there,...

4) When I talked spoke to the BOD during Q&A,... err,.. don't know how to describe,...

Well,... in summary, I think it it's better to go with some other counters. Ascott won't give more than what investors deserve. When I first started investing in SG, I would go for the blue chips and the govt-linked counters,... today,... with experience,.. I think no more-lar,....
*
Thanks for the info.
Understood what you try to describe. nod.gif




cherroy
post Jul 26 2017, 10:07 AM

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QUOTE(Vio @ Jul 26 2017, 09:59 AM)
thank you sir. to decide when to enter , shd i be looking at "NAV" to determine the price, and also "YIELD" to for the profit that ill be gaining?
also how do i get myself any SG brokers? any platform ?
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Not just look at yield and NAV, you need to consider its WALE and sustainable lease, gearing, quality of properties they hold, management etc. which determine the quality of a reit.

Have high yield, but difficult in renewal lease or unsustainable over long run, also no use.
Have high NAV, but cannot lease out property to generate decent income also no use.


cherroy
post Jul 26 2017, 11:01 AM

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QUOTE(Ramjade @ Jul 26 2017, 10:37 AM)
Liquidating my CMT  thumbup.gif
Hopefully someone bites  biggrin.gif
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Despite many view mall prospect is not so good, still CMT remains one of my favourite.

Buy 1.9x, sell near to 2.1, you can't go wrong too much on this reit in this price range. biggrin.gif

This is a plus point of having a high cap, high liquidity reit.

Having good liquidity is also an important factor for reit.
cherroy
post Jul 27 2017, 09:39 AM

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The reit market is really bull now.
Even after xd, many still continue to surge higher.

cherroy
post Jul 27 2017, 10:09 AM

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QUOTE(prophetjul @ Jul 27 2017, 10:01 AM)
Yeah

Probably time to trim?
*
Ya, seems like a bit "over-crowded".

Market totally ignores Fed's intention/plan to wind down its balance sheet.
cherroy
post Aug 2 2017, 04:57 PM

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QUOTE(simplylegendary @ Aug 2 2017, 03:21 PM)
Hi guys, am new to REITS. Is there any Singapore-based REITs that is investing in Indonesia' property market?

Thanks
*
Another one is First reit.

Mind to know why keen on Indonesia's property?
cherroy
post Aug 3 2017, 10:25 AM

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During 2008 crisis, we were talking about melt down of financial market, especially for banking stocks.

There were risk associated of potential banks and reit went burst across, due to Lehman Bro.
Interbank market was freezing and banks had liquidity problem across the globe.

So it was one of unprecedented event, and once in lifetime event, so it is difficult to use 2008 price as comparison for today.

That time, if bought the wrong stocks, we were talking about potential loss of 50 to 90%, that's why there was fear and people dumping stocks at that time.
Nobody talked about dividend yield at that time, but concern whether banks, reits can survive or not.
There were reits especially in US, went burst during that time, due to inability to refinance the debt due.

This post has been edited by cherroy: Aug 3 2017, 10:27 AM
cherroy
post Aug 3 2017, 04:26 PM

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QUOTE(Ramjade @ Aug 3 2017, 03:44 PM)
Aims (if can catch at 1.35 below), First reit (if can catch at 1.32), Mapletree china (if can catch at 0.9x-1)
AGT if fall to 0.67 grab already. No need to wait hit 0.65
Temasek owns mapletree which owns the four reits.  thumbup.gif  Which they open up their student accommodation reit to public instead of for private investors. You cannot go wrong with mapletree. That's why feel want to consolidate my CMT + FCpT > MCT
Ascendas is also supported by temasek (but yield too low and not attractive for me)
*
Ascendas below 2.60 around, 6% yield would be decent, after all FLT also about 6%+ only.
Ascendas is significantly diversified and larger than FLT.

cherroy
post Aug 4 2017, 11:04 AM

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Rules and regulation, tax laws aka income declaration, capital gain tax etc. there are plenty to sort out first before venturing, something may not easy as buying Sreit from here.

In some western countries, the tax rules may be quite complicated, not as simple as in Sg.
cherroy
post Aug 4 2017, 11:08 AM

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QUOTE(Ramjade @ Aug 4 2017, 11:04 AM)
Is not about jumping here and there. As I said, if there's no deal (cheap stuff to buy in SG), I am perfectly fine to buy other place. No point letting cash rot. Learn this from the FSM forum. If one place not a good place, look at other places.
*
Sometimes, patient is also an art in investing.

When equities asset valuation is high, normally, it is high across the globe.

We have not experiencing a bear market for too long already.
Don't take for granted, everything must go up in straight line. smile.gif

cherroy
post Aug 4 2017, 02:51 PM

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QUOTE(Hansel @ Aug 4 2017, 11:06 AM)
This just occured to me,... is it possible that,... if say, we have a portfolio of shares under our single name in a portfolio at a particular brokerage, then we initiate a transfer of this whole portfolio to another person's name in the same brokerage ? This would be, in essence, transferring out holdings to a beneficiary,...

In Singapore ? In Australia ?
*
For KLSE, any CDS shares or securities transfer only can be done within immediate family member, other third party transfer is not allowed.

cherroy
post Aug 5 2017, 02:45 PM

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QUOTE(Ramjade @ Aug 4 2017, 09:53 PM)
I won't touch hospitality reits with airbnb. Last time without airbnb amd friends, maybe yes. If now, no thanks.

Even die die want to invest in tourism, there are better options for tourism section in Singapore.
*
I have slight different view.
Premium and strategy location or prime hotel is not going to compete directly with airbnb.
It is different market segment.

The situation is a bit different with malls vs online selling.

So, those hospitality reit that having quality hotels and at strategy location one should be doing ok.
But it may be different story for those budget hotels, or secondary hotels.

This post has been edited by cherroy: Aug 5 2017, 02:49 PM
cherroy
post Aug 7 2017, 03:14 PM

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QUOTE(prophetjul @ Aug 7 2017, 01:04 PM)
Just in advance talk stage, no conclusion nor potential acquisition price set, yet share price shoot up 10%...
cherroy
post Aug 7 2017, 04:49 PM

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QUOTE(simplylegendary @ Aug 7 2017, 04:47 PM)
Another 7.6% for acquisition before hitting the ceiling. What's the gearing ratio for others?
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45% is the gearing ceiling ratio, not 35%.

Most reit gearing ratio are in the region of 35~40%.
cherroy
post Aug 7 2017, 04:55 PM

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QUOTE(Ramjade @ Aug 7 2017, 04:52 PM)
Can a reit decrease it's gearing by paying more principal and reduce it's DPU? A reit must pay 90% of it's earnings right? So can the reit manager use some of the 90% to pay off it's debts (which will cause the DPU to drop)?
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Can, but they will lose the tax exemption status, which defies the purpose of a reit creation.

They would rather having a right issue, instead use the earning (which is slow btw) to pare down the borrowing, which cause them to lose the tax exemption.

Why sponsor start up a reit?
To get tax advantage as compared to ordinary property holding company.

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