Not reach March 2020 low, then it's not cheap enough

Straits Trading also has real estate investments in SG and Australia. They recently expanded their investments in Australia: https://links.sgx.com/FileOpen/Press%20Rele...t&FileID=733019

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In another news, Ascendas REIT to convert San Diego office property to Life Sciences property

https://links.sgx.com/FileOpen/News%20Relea...t&FileID=733135



This post has been edited by TOS: Sep 30 2022, 08:13 PM

S-REITs stuffs from yesterday's BT (031022).

S-REITs and Business Trusts stuffs from BT 041022:

S-REITs stuffs from yesterday's BT (051022).

BT 061022 Property 2022 Supplement: https://drive.google.com/file/d/13G_gHkS9NP...iew?usp=sharing

Tonnes of stuffs about SG property markets, relevant info for REIT investors at the last 2-3 pages. Nice map of SG and upcoming/new residential property launches in the middle section.

Cross-posted with SGX Counters thread.

First to report results as always: SPH REIT

https://links.sgx.com/1.0.0/corporate-annou...92a6d174f9e2274

S-REITs stuffs from BT 101022:



This post has been edited by TOS: Oct 11 2022, 10:46 AM

For Suntec REIT investor especially:

Well said!

From BT 131022:

Actually you can quantify the entry level based on LTM dividend yields for a start. Other factors include yield spread, corporate bond spreads etc.

Have a look at this slide from Capitaland's recent investor day presentation: https://links.sgx.com/FileOpen/20221013%20C...t&FileID=734225



(Source: https://links.sgx.com/1.0.0/corporate-annou...99e2609c864410)

The LTM yield as recent as 11 Oct was still around 4-6% p.a. depending on the REITs. And quite obviously, with the 10 year yield reaching 3.3% p.a. that's a very low spread.

During crisis spreads can reach 5-6% p.a. or higher, so you can start purchasing at 3.3% + 5-6% or somewhere near LTM 8-9% p.a. yields for the large caps REITs. Since LTM dividend payouts per share are known value, you can compute your entry price from there.

9% is actually still below 2009 crisis level yield level. LTM yield reached 16% at its highest back then, or double the reference level I quoted earlier. But you can't predict the spread. So purchase bit by bit.

Anyway the above are just a reference of course.

Some figures:

Uhmm I forgot to mention that risk free rates themselves may also rise... So if next year we see 4-5% 10-year SGS yield, 5.5% is 0.5-1% spread only...

But ok lah as long as you are happy with the yields and returns.

Yet another thing I forgot to mention is that nearly all REITs have floating rate loans, a higher yield will also mean increased interest payments, so to stay on the safe side, give yourself an additional 5-10% reduction in LTM DPU before you compute the "modified" LTM yield.

E.g. this is Ascendas REIT's yield sensitivity info from last result.



Source: https://investor.capitaland-ascendasreit.co...T8RFZ15HR.3.pdf

Of course you can make a lot more adjustment like forex movement impacts on DPU etc. But by then you will be as good as a professional stock analyst. So, just assume 5-10% DPU drop from LTM is sufficient enough for our own "layman" analysis, at least for large cap blue chip REITs.



This post has been edited by TOS: Oct 15 2022, 02:37 PM

Good REIT managers will time the renewal to avoid period of stress in the debt markets if they see the spread is unusually high, though I have no proof of that.

Hmm... TA expert dwRK wants to share if mood and momentum can be quantified? Charts can tell something, no?

Going back to SREITs discussions.

3Q earnings seasons has now begun and these are the SREITs (and BTs) earnings release dates:

This week (17-21 Oct)

20th Oct (Thursday): Keppel Infrastructure Trust aftermarket
21st Oct (Friday): CICT aftermarket

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Next week (24-29 Oct)

25th Oct (Tuesday): Keppel REIT, Mapletree Logistics Trust aftermarket
26th Oct (Wednesday): Frasers Centerpoint Trust, ESR Logos REIT, AIMS Apac REIT premarket; Digital Core REIT, Mapletree Industrial Trust, Keppel DC REIT, Keppel Pacific Oak REIT aftermarket
27th Oct (Thursday): Mapletree Asia Pacific Commercial Trust, Starhill Global REIT aftermarket
28th Oct (Friday): Capitaland Ascott Trust (formerly Ascott Resident Trust) premarket

--------------------------------

Week after next week (31 Oct-4 Nov)

31st Oct (Monday): Ascendas (now Capitaland) India Trust and Capitaland China Trust before 8 am, Ascendas REIT aftermarket
1st Nov (Tuesday): Parkway Life REIT aftermarket
2nd Nov (Wednesday): Netlink NBN Trust aftermarket
3rd Nov (Thursday): OUE Commercial REIT aftermarket
4th Nov (Friday): Ara US Hospitality Trust premarket

-------------------------------

2 weeks after next week (7-11 Nov)

7th Nov (Monday): Lendlease Global Commercial REIT premarket
8th Nov (Tuesday): Prime US REIT aftermarket
9th Nov (Wednesday): United Hampshire US REIT, Lippo Mall Indonesia Retail Trust, IREIT Global, EC World REIT aftermarket
10th Nov (Thursday): Frasers Logistics and Commercial Trust premarket, Cromwell European REIT
11th Nov (Friday): Sassuer REIT premarket

*SGX non-REITs and non-BT counters 3Q earnings release date are posted in "SGX Counters" thread.

This post has been edited by TOS: Oct 31 2022, 06:54 PM

REIT Watch from BT 171022 (yesterday).

Is collecting rent not a business?

https://links.sgx.com/FileOpen/Section%2014...t&FileID=734608



CE REIT's acqusiition of a logistics asset in Denmark and divestment of 2 logistics assets in Germany.

https://links.sgx.com/1.0.0/corporate-annou...9FU34NGZKJJU5V/

From BT 181022: