Ok bro Avfan

Will stop topping up industrial reits.

Focus is shifted to retail malls and office towers.

How abt Healthcare reits and hotel reits?

Mandarin Oriental shares would u consider?

Good also to have a half dozen.

I will try to keep Capital Comm after seeing its portfolio.

Why buy and sell instead of keeping for dividend? Which way more profitable?

Yes i know. U wrote this in earlier postings. I followed every postings u wrote.

i will put them in action.

Sabana REIT just published their results which is quite disappointing as their distribution drops but quite a lot (more than 10%). Moreover, their valuation also drops by 9% according to their reports, which is very unfavourable. Let's look at the statistics.

With the drop in yield and NAV, the price has dropped to $0.66 which gives a yield of 9.09% currently. However, they are in the midst of negotiating another three properties for master lease and one conversion, I believe yield will continue to drop. Assets per unit has dropped which means their price-to-book ratio has risen to 0.742. Still not too bad considering the valuation at current economic climate and it is the cheapest among the Industrial REITs. Gearing is at a high of 43.9%. Please note that I use all liabilities instead of just debt.

From the statistics, it look promising, with high yield and favourable price-to-book ratio. However, with the problems coming up, I don't see the yield going up anytime. In fact, I do see it going down further. The only positive thing is its small size, which makes it a possible target for take over. I am vested only with 1,000 shares so will see what happens. Maybe a white knight will come if they see value in this, hopefully.

SINGAPORE - The time has come for real estate investment trust (Reit) managers here to seriously consider buying back some of their issued shares given the sector's depressed valuations, Religare Institutional Research suggested in its recent initiation report on Singapore Reits.

Some Reits are now trading at 20-30 per cent below their book values. Compared to buying properties at high prices and compressed cap rates of 4-5 per cent, Religare sees a stronger case for managers to buy their own shares which are yielding 7-9 per cent, depending on the sector.

Analyst Pang Ti Wee told The Business Times in a call: "Share buybacks might become the best kind of investment from the manager's point of view, as opposed to taking some money out to buy another hotel (as an example), because the yield is higher."

He believes that the S-Reit sector is oversold. He sees other benefits in share buybacks for unitholders. "For one thing, it shows confidence to the market that you as a manager are saying that this stock is undervalued."

For another, buybacks shrink the issued unit base and so boost distributions per unit (DPU). In some way, share buybacks also help to support their trading prices.

Since Reits do not hold much cash in hand, there are three ways they can finance their buybacks:

1) by selling their underperforming, lower-yielding assets;

2) by using debt - which is trickier because the Monetary Authority of Singapore (MAS) has enforced a 45 per cent leverage limit and managers generally like to also keep some debt headroom; and

3) by issuing perpetual debt, which no Reit has used before to fund buybacks. The good thing about this method is that MAS treats perpetuals as equity for the purpose of Reit leverage rules, so this does not affect their leverage limits.

Mr Pang agreed that it may seem counter-intuitive to be paring down one's own portfolio instead of growing it. There may even be resistance from Reit managers who stand to enjoy higher management fees when their portfolios are larger.

"But buying back shares would show the market that they have good corporate governance, that they are thinking on behalf of and aligning interests with unitholders. Management would be returning capital to investors by taking advantage of a low interest rate environment before the opportunity vanishes, while boosting DPU," he said.

He, however, qualified that: "To be fair to managers, on the longer-term basis, buying properties should still be the underlying fundamentals for Reits to grow the portfolio. Buying back shares is opportunistic."

Currently, S-Reit yields are at a spread of more than 400 basis points above interest costs, he said. Interest rates are at 2-3 per cent, while Reits are yielding 7-9 per cent across the board.

Meanwhile, all perpetual debt previously issued in the S-Reit industry is at less than 5 per cent interest rate.

Mr Pang said that if some Reits (such as those in the industrial sector) are trading at a high yield and large discount to book value, issuance of perpetual debt at 5-6 per cent to buy back shares could also potentially result in a positive carry spread of 300 basis points or more, as well as a higher DPU if the shares bought back are retired.

There would also be minimal impact on the leverage ratio, given that perpetuals are viewed as equities by MAS.

"Having said that, we believe this exercise is more feasible for some of the larger Reits that have higher trading liquidity," he qualified.

This is because buying back shares of an already illiquid Reit would leave it even more illiquid, and may also risk pushing up its price too drastically.

- See more at: http://business.asiaone.com/news/singapore...h.WTc3ffT6.dpuf

Saizen REIT has published a circular detailing on the process that they will take for the sale to take place. Here are the details

Current Price = $1.09

Special Distribution = $1.056 (By 21st April 2016)
Retained Distribution = $0.09 (By 31st Dec 2016)
Dividend Distribution = $0.039 (Estimate 8 months from July 2015)
Total = $1.185

The catch is that the retained distribution may be used for repairs by the buyer which means we may not get the retained distribution. Thus, we are looking at $1.095 if all the retained distribution is used up.

Therefore, here is the deal. If all the retained distribution is used up, we are looking at 0.47% return from now which is equivalent to the returns of a savings account. If all the retained distribution is given to us, we are looking at at 8.68% return from now which is equivalent to a one year REIT investment with a guarantee in capital. Well, is this good for you?

I am vested with 21,000 shares. I bought 11,000 shares at $0.93 just before they announced their take over so I am going to enjoy a larger earnings. Another 10,000 shares is bought at $1.09 which will follow this formula which I have written here. Will follow through all the way to see whether I can earn the potential returns.

Analysis of CapitaLand Commercial Trust
Current Price on 20th Jan 2015 = $1.31
Yield = 6.63%
Price-to-book Ratio = 0.738
Assets per unit = $2.235
Debt per unit = $0.461 (including current liabilities)
Gearing = 20.6%
Secured NAV = $1.775 (135% of trading price)
CapitaLand Commercial Trust has reported their results which in my opinion is quite favourable given the fundamental shift from looking at Yield to looking at NAV. Here is the data.

Yield is at 6.63% which is hardly exciting but its NAV is a big plus. It has a price-to-book ratio of 0.738 which means we are buying at about 26% discount. Moreover, as their debts are all unsecured, it means that all properties are technically quite safe from being seized by banks. Thus, we have a secured NAV of $1.775 which is 135% of their current trading price. This means that if they liquidate all their properties and pay off all the debts, we get $1.775 back.

This doesn't mean that they will do that. They are the biggest Office REIT and it is very unlikely that they will be taken over. The purchaser will need a lot of money to do that. But the manager can choose to sell off some of their properties to realize the value of the investments and create true value for shareholders. One news report is already suggesting that.

We need some news and announcements that some REITs are doing just that to spur the activities of REITs so that their trading price is closer to their NAV. I believe once CCT announce the sale of one of their properties, price will go up. I am not vested though so just watching the news.

Analysis of Keppel REIT - Quality Office at a Bargain Price
Current Price on 8th Jan 2015 = $0.915
Yield = 7.43%
Price-to-book Ratio = 0.648
Assets per unit = $2.309
Debt per unit = $0.897 (including current liabilities)
Gearing = 38.8%
Keppel REIT was once my anchor investments which has given me a great deal of rewards with strong yield and capital appreciation. Now I realize that it has fallen to a level which attracts my interest.

With a yield of 7.43%, it is not really fantastic although it is still quite high among the office REITs. But what attracts me is their price-to-book ratio which is at 0.648. This means we are buying at 35% discount to NAV which is quite a bargain. Compared to the largest office REIT which is Capital Commercial Trust, it is still about 10% cheaper. Gearing is at a healthy 38.8% which is not in danger.

The yield and price-to-book ratio caught my eye and I am willing to consider reinvesting into this counter since the statistics is quite good actually. Let's see if there are other good counters around first.

Good news. Mozilla Firefox can be used to view SC online trading acc using Samsung smartphone.

Yes!!

Croesus is 0.77

Anyone topping up?

I think worth to keep this counter.

What say u guys? Pay extra 0.005?

Anyone get cheap Croesus today?

Suntec is 1.65. Can sell once 1.66

This post has been edited by prince_mk: Feb 26 2016, 11:00 AM

I dont get it. Can elaborate further?

Why u add the price and divvy and to determine to buy or not ??

16/2 price was 0.77. The cost was 0.77 - 0.035 (dividend I will get) = 0.735

So, after the ex date, shall i buy when price is lesser than 0.77 or lesser than 0.735 ?

Can I say i should buy at 0.735 or lower, right?

This post has been edited by prince_mk: Feb 26 2016, 03:19 PM

Can let me knw when to buy both of them. I wan join d fun.

I only have little suntec and capital comm. Sayang wanna sell off.

Tonight i wan queue to sell off XLV. Last nite almost reached target price.

Managed sold xlv at target price when market opens. Now i try to analyze see can catch some pocket money or not.

Asian Pay Television Trust (“APTT”) is the first listed business trust in Asia focused on pay-TV businesses. APTT has an investment mandate to acquire controlling interests and to own, operate and maintain mature, cash generative Pay-TV and Broadband Businesses in Taiwan, Hong Kong, Japan and Singapore. APTT’s seed-asset is Taiwan Broadband Communications Group (“TBC Group”).

Dividend ex date : 15 Mac 2016 (0.0225)