This thread is to address a particular investment in Singapore REITS or S-REITS

The very basic things we should consider when investing in REITs are non other than DPU and yield.

DPU
DPU, the Distribution per Unit, is how much dividend we get for every unit/share of the REIT. This information can be easily found in the SGX portal @ www.sgx.com, under "Listed Companies" -> "Corporation Action". Example select CapitaMall Trust for Company Name, select Dividend for the Category. Following is what you should see for the DPU since January 2009 for CapitaMall Trust (CMT):



For SREITs, the DPU is given either quarterly (4 times per year) or semi-annually (2 times per year). From the above table, base on the Dates of Expiry or Date Payable, we can see that CapitaMall Trust distributes the DPU every quarter. Following are the details of the SREITs distribution frequency:


REIT Frequency of Distribution
AscendasReit -Quarterly
AIMSAMPIReit - Quarterly
AscottReit - Semi-Annually around Jul and Jan period.
Cache - Quarterly
Cambridge - Quarterly
CapitaComm - Semi-Annually around Jul and Jan period.
CapitaMall - Quarterly
CapitaRChina - Semi-Annually around Jul and Jan period.
CDL H-Trust - Semi-Annually around Jul and Jan period.
FirstREIT - Quarterly
Fortune (HK cents)- Semi-Annually around Jul and Jan period.
FrasersComm - Semi-Annually around Oct and Apr period.
FrasersCT - Quarterly
K-Reit - Semi-Annually around Jul and Jan period.
LippoMapleTrust - Quarterly
MapleTreeLog - Quarterly
PLife - Quarterly
Saizen - Semi-Annually around Jul and Jan period.
Saban - Quaterly
Starhill Gbl - Quarterly
Suntec - Quarterly




Yield
Yield is the annualised DPU divided by the share price. Annualised DPU means how much DPU we can get for the whole year. The usual practice in calculation of annualised DPU is to take the latest DPU and mulitply by number of distributions per year, i.e. X 4 for quarterly distribution, X 2 for semi-annual distribution.
Of course there are variations to the way in calculating yield. For a REIT giving a stable and consistent amount of DPU, the above method should be accurate. For a REIT with widely varying DPU every distribution, you may add up all the distributions per year, or half a year than multipy by 2, to get a more accurate estimate of the annualized DPU. From observation, the DPU of SREIT is fairly stable, with very little % variable QoQ, other than when there is a rights issue in which the DPU is diluted, or when a troubled REIT temporarily cuts the DPU.

Distributable Income
The DPU is derived from the distributable income of a REIT. The distributable income is how much cash the REIT is able to distribute. Now there is a subtle difference between the REIT and a normal company in terms of dividend payment. For a normal company, it may pay out a certain percentage of its net profit as dividend. But net profit may not consist of purely cash earnings, as some earnings that are posted as profit may not be cash income, example increase in valuation of a property. Similarly, decrease in valuation of a property may be posted as a loss in the calculation of net profit, but it does not mean a loss of cash. For REITs, the distributable income is derived from its cash earnings, so technically it is possible for a REIT to post a net loss when the decrease in valuation of its properties is much more than the rental income, and yet it is still able to have a postive distributable income.

The distributable income statement can be determined from the quartly earnings report of the REIT. You can get the quarterly report from the SGX portal, under "Listed Companies" -> "Company Announcements". Select "Last 3 Months" for the Announcement Period, and say for example "CapitaMall Trust" for the Company Name. Look out for something along the line of "MISCELLANEOUS :: 2009 THIRD QUARTER UNAUDITED FINANCIAL STATEMENT & DISTRIBUTION ANNOUNCEMENT".

Once you get hold of the report, look for the "Statement of Total Return & Distribution Statement". The Distribution Statement will tell you how much cash is available for distribution (Amount available for distribution to Unitholders), and how much cash is actually paid out for that quarter (Distributable income to Unitholders). The Distributable income to Unitholders divided by the total number of units/shares of the REIT will give you the DPU. The total number of units in issue by the REIT can be found out in the same report. Look for Total issued and issuable Units as at end of period under Details of any change in the issued and issuable Units.

By MAS regulation, a REIT is supposed to give out at least 90% of its amount available for distribution to Unitholders. Currently most of the REITs are giving out 100%, and as far as I know CDL HTrust has cut its distribution to 90% since early this year.

Of course there are other indicators such as NAV, Gearing, etc. Please pop into the following useful site.


http://sreitinvestor.blogspot.com/2009/11/...dpu-and_13.html

Witholding Taxes- As far as i know, if the REIT distributes at least 90% of its Distributable Income, there is NO withholding taxes
for individuals with regards to S-REITS, making it more attractive than M-REITS.


For news

http://sreit.reitdata.com/

For updated investment Data Summary

http://reitdata.com/


DISCUSS AND ENJOY!

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Added on September 11, 2012, 9:34 amREITs – Phillip

5 September 2012
Comments Off



Results Season Takeaways


Sector Overview


The Real Estate Investment Trust (REIT) Sector in our Singapore coverage consists of 23 REITs listed on Singapore exchange with a market capitalization of USD35 billion.

Majority of S-REITs turned in positive DPU

S-REIT’s dividend yield of 5.5% is less appealing than a quarter ago and there is limited upside given rich valuation based on +1 STD of P/B ratio


Earnings Surprise?


Across the S-REITs universe, majority of them turned in positive DPU. Negative rental reversion was not the main reason for the dip in DPU. The drag in DPU was caused by some other factors such as divestment of property assets, issuance of new units, on-going major asset enhancement works and amongst others.


Under our coverage, the DPU estimates for CDL HT, PLife REIT and Sabana REIT were largely in-line, forming 49%, 51% and 50% of our FY12 projections.


Capital management outlook

The variable-rate loans that are pegged to swap offer rates maintained flat

Liquidity is expected to remain healthy at current loan-to-deposit ratio (LDR) level of 91.9%

Financial position of REITs looks healthy, with comfortable gearing and longer weighted average debt to maturity


Recommendation


P/B ratio has progressively moved towards +1 SD and it had served as a strong resistance level for the past four years. From our viewpoint, it is going to be an uphill struggle to break above +1 STD. Given there is no major negative shocks from the western countries, P/B ratio should hover around this level as the current situation is not much better compared to two years before, undermined by lingering Euro debt problems and anaemic US growth.


For investors with mid- to long- term horizon, they may want to place their bet on Suntec REIT which is undergoing major makeover (phase 1-4) at Suntec City, stretching from Jun-12 to 2014. In this regard, return on investment from the refurbishments is likely to stream in in staggered phases. The tax savings from MBFC Phase I and potential ORQ could make up the loss for the drop in vacancy. Valuation is also undemanding and trading at a steep discount of 26.5% relative to Mapletree Commercial Trust (MCT) and Starhill Global REIT.

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Added on September 11, 2012, 9:38 amSingapore REITs Yield World’s Best Returns: Southeast Asia

By Pooja Thakur - Sep 5, 2012 9:29 AM GMT+0800

http://www.bloomberg.com/news/2012-09-04/s...heast-asia.html

Singapore’s real estate investment trusts, the best performing in the world this year, are luring investors after a shopping spree for properties across Asia gives them a broader stream of rental income.

Singapore’s $38 billion REIT market has returned an average 37 percent in 2012, twice the gains in the U.S., U.K. and Japan, according to data compiled by Bloomberg. Australia, the largest REIT market in the Asia-Pacific region with $86 billion, advanced 24 percent.

Growth among Singapore REITs was led by asset acquisitions and rental appreciation, with total rental revenue increasing 5.8 percent annually between 2008 and 2011, according to property broker CBRE Group Inc. In the first half, Singapore REITs were the second-most active purchasers after Japan in Asia, buying assets in Australia, China, Japan, Malaysia and South Korea, and accounting for 33 percent of acquisitions by the region’s REITs since 2009, CBRE said.

“Singapore remains amongst the last few AAA rated economies,” Priyaranjan Kumar, Singapore-based regional director of the capital markets group at broker Cushman & Wakefield, said in an interview. “Its real estate market has received unprecedented attention from most investors as it’s seen to offer a good proxy for the increasingly recognized strength of the Asian consumer.”

The gap between their yield and interest rates is double that in Australia, according to data compiled by Bloomberg. Property trusts in the island-state offer an average 413 basis- point income return premium relative to 10-year government bonds, while in Australia they average 192 basis points, data compiled by Bloomberg showed. A basis point is 0.01 percentage point.

Game Change

Singapore’s REITs have a dividend yield of 6.47 percent, according to data compiled by Bloomberg. That compares with to 4.97 percent in Hong Kong and 5.01 percent in Australia.

Economic growth in the Southeast Asian island-nation across the Johor Strait from Malaysia will probably accelerate to 3.9 percent next year from 2.7 percent in 2012, the International Monetary Fund forecast in its World Economic Outlook report in April. The advanced economies, including the U.S. and U.K., are estimated to expand 2 percent in 2013.

“The game has changed from capital appreciation to capital preservation,” Tim Gibson, a Singapore-based fund manager for Asia-Pacific property equities at Henderson Global Investors, said.

Budget Surplus

Singapore boasts the world’s biggest budget surplus relative to economic output, adding to demand for its currency as Europe’s fiscal woes roil global markets, the IMF said. The Singapore dollar is the best performer this year after the Philippine peso among the 11 most-traded Asian currencies tracked by Bloomberg. Singapore is one of seven nations with AAA ratings and stable outlooks from Moody’s Investors Service, Standard & Poor’s and Fitch Ratings.

Tax incentives, which include exemptions on foreign income received by Singapore-listed REITs and distributing at least 90 percent of their income as dividends to unit holders, also helped boost demand.

Singapore offers a pipeline of assets from developers, a fair regulatory environment and a base of international investors and quality sponsors, Jason Kern, Hong Kong-based managing director and head of real estate and lodging advisory for Asia-Pacific at HSBC Holdings Plc, said in an interview. A sponsor is a developer with a stake in the REIT and whose properties form the trust’s pipeline of assets to be purchased.

Outperforming Stocks

“Coming out of the global financial crisis, investors have focused on transparent, predictable markets with sustainable income profiles,” Cushman’s Kumar said.

Singapore REITs also have a liquid secondary market, low transaction costs, and low leverage compared with Japan and other large REIT markets, Kumar added.

Four of the top 10 best-performing REITs with assets of more than $250 million in the region are from Singapore, according to data compiled by Bloomberg. Including dividend yields, Frasers Commercial Trust (FCOT) has returned 58 percent this year, AIMS AMP Capital Industrial REIT 48 percent, and Keppel Land Ltd.’s K-REIT Asia (KREIT) 46 percent.

Singapore REITs have outperformed the city-state’s benchmark Straits Times Index, which has climbed 13 percent this year. The 10-year government bond yield in Singapore was 1.38 percent as of Aug. 29. Adjusted for inflation, Singaporean savers currently receive a negative real return on their savings of 4.79 percent.

Market Recovery

The REIT market in the Asia-Pacific region is worth $205 billion, more than before the global financial crisis, according to the Asia Pacific Real Estate Association. European REITs are below the levels before the crisis, while North America, the world’s largest REIT market, has seen assets climb 82 percent from December 2007, the data showed.

Singapore is the region’s third-largest REIT market after Australia and Japan’s $45 billion, according to data compiled by Bloomberg.

The real estate market in Singapore recovered sharply after the first quarter of 2009, with prime rents and capital values increasing in excess of 60 percent over lows during the global financial crisis, according to New York-based Cushman.

Total investment turnover for Asian REITs reached US$7 billion during the first six months of the year, a 14 percent decline from the second half of 2011, on concerns over the eurozone debt crisis and the weaker outlook for the regional economy, Los Angeles-based CBRE said.

More Selective

“Although Asian REITs are expected to remain in buying mode, they will likely turn more selective towards future acquisitions, with yield enhancement and insulation from the global economic slowdown emerging as important criteria,” CBRE analysts Ada Choi and Leo Chung wrote in a report on Asia’s REIT market last month.

Earnings growth, or distribution per unit of Singapore REITs, will slow to 4 percent in the two years ending 2014, with the previous highs of a 13 percent growth rate between 2006 and 2008 appearing unachievable, Singapore-based analysts, led by Derek Tan, at DBS Group Holdings Ltd. said in an Aug. 21 note. Maturing portfolios will add to slowing growth, Tan said.

The outlook for Singapore’s commercial-leasing segment is becoming more challenging and the funding environment is likely to become more volatile over the next two years, Standard & Poor’s credit analyst Wee Khim Loy said in a note on Aug. 2. A dislocation in the credit markets may cause significant financial stress because the trusts rely on bank funding, the rating company said. Leverage levels of most office REITs could become weak if property values decline by as much as 10 percent, it said, maintaining a negative outlook for the office segment.

Uncertain Outlook

Still, Singapore REITs are well placed to weather tight operating conditions as the trusts have increased their financial flexibility and diversified their funding sources, the rating company said.

There remains ample room for future growth in REITs as prime rents remain 25 percent to 30 percent off their peak in the second quarter of 2008, Kumar said. At current yields, Singapore REITs are attractive for investors looking for total returns, he said.

“There are a lot of uncertainties in terms of economic outlook, so investors are actually looking for stability, defensive earnings,” Eddy Loh, a Singapore-based equity strategist for Asia at Barclays Plc, said in a phone interview. “Coupled with the fact that we still have a very low interest rate environment and the dividend yields for some of these REITs can go up 6 percent to 7 percent that seems to be very attractive to investors actually.” Loh is advising clients to bet on industrial and retail REITs.

REIT IPOs

The three-month Singapore Interbank Offered Rate is at an all-time low of just under 0.4 percent, compared with a peak of 3.56 percent in 2006, according to data compiled by Bloomberg.

The performance of real estate trusts is prompting a flurry of initial share sales by REITs that may top $2 billion, with as many as six companies planning to list their assets, according to HSBC’s Kern. That’s the most since 2010 when Singapore REITs raised $4.13 billion, according to data compiled by Bloomberg.

Ascendas Hospitality Trust (ASHT) raised about S$459 million ($369 million) in July, while Far East Organization, Singapore’s biggest closely held developer, drew S$717.6 million in an initial share sale of a hotel trust last month.

“If we think we are five years through a lost decade from a global economic standpoint, then we will see money flowing into REITs as people will continue to chase yields,” Gibson said. “Unless we see interest rates increasing at any point in time, then that will stop the party, but I don’t think you need to be dancing too close to the door just yet.”

To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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Added on September 11, 2012, 9:47 amSREITs – Kim Eng

10 September 2012



The allure of S-REITs


Gravity Defying: Highest Yield-Spreads and Returns Globally.

S-REITs has risen 28.7% YTD, outperforming even major REITs markets such as US, Australia and Japan etc

We pointed out that S-REITs has one of the highest yield spreads globally in our previous report dated 3 Sep 2012. We took a deeper look at global/regional peers and below are our assumptions and proposed theses why this may be the case:


Why Asian REITs have much higher yield spreads.

The Asian REITs (S-REITs, J-REITs, and HK-REITs, excluding M-REITs), outperformed the non-Asian REITs (US-REITs, UK-REITs, A-REITs) in terms of yield spreads partly due to higher borrowing costs in the West (consequence of US/European deleveraging) and Australia.

With the exception of M-REITs, the Asian REITs incur average cost of borrowing (sector average) of ~1.5%-3.1%, much lower than the 5.5%-6.9% expensed by non-Asian REITs.

We noted that despite risk-free rates being low in the US (1.7%) and UK (1.8%), the actual borrowing costs to companies on the ground are relatively higher, compared to Asia. Western banks have become parsimonious in their lending vis-à-vis the robust loan growth situation amongst Asian banks.

From our observations, A-REITs and UK-REITs have average cost of borrowings much higher than normalized1cap rates, rendering DPU yields to be trading near cap-rates levels. As a result, yield spreads are much lower in comparison. For US-REITs, the high borrowing costs are partly offset by their higher cap rates, but this is still insufficient to cover the 178-211 bps yield spread lag behind Asian REITs (excluding M-REITs).

In M-REITs case, both the cost of borrowing and risk free rates are much higher than S-REITs, J-REITs and HK-REITs, resulting in much lower yield spreads.


What gives S-REITs the edge over other Asian REITs.


Higher Capitalization Rates:

On a sector basis, Singapore has relatively higher normalised2 cap rates (net property income that can be extracted per annum for each S$ dollar invested in investment properties), compared to Hong Kong and Japan.

For example in HK, cap rates (net basis) for prime office and prime retail buildings on a stabilized basis are around 3%-3.5% and 3.5%-4% respectively. However, in Singapore, cap rates for prime office and prime retail properties are at least 4.0% and 5.0% respectively.

This enables S-REITs to offer DPU yields of ~6% without trading at price-to-book discount (1.07x PBR). On the other hand, in order to offer DPU yields of ~5%, HK-REITs and J-REITs have to trade at ~0.8x PBR.


Unlikely interest rates hike until end 2014:

The MAS manages the Sing dollar’s strength by buying or selling currencies to keep its exchange rate against major currencies within a policy band, and by adjusting the band occasionally to steer the exchange rate. This FX-centred monetary policy regime means that Singapore’s short-term interest rates are essentially a function of US short-term interest rates.

Most economists do not expect any significant interest rates hike until end of 2014, following the US Fed’s intent to keep short-term interest rates near zero till then. If correct, this would imply that the cost of borrowings for S-REITs (some pegged to SIBOR) will stay at current low levels through 2012-2014.


Others reasons:

The strong SGD, chasing yields climate and lack of investable alternatives in the market are other factors providing price support for S-REITs. Investors are also drawn to the transparency and predictability of S-REIT dividends, particularly in the midst of the external market uncertainty



Yields can compress another 70-90 bps (Peak Valuations).


S-REITs are presently trading at 5.9% FY12 yield and a yield spread of 463 bps. We think there is downside room for another 70-90 bps compression in view of the following two reasons:

The S-REITs’ average and stabilized long-term yield spread (excluding the GFC period) is around ~370 bps.

The effective cap rate for S-REITs is around 5.3%. If we take cap rates as the floor for FY12 DPU yield (since overall S-REITs sector trading at P/B of ~1x), there is another 70 bps for yields to be compressed further.


A yield-spread compression of another 70-90 bps equates to an average price appreciation of 13%-19% for the sector.


Maintain OVERWEIGHT on S-REITs.

We conducted a 2QCY12 results round-up and target price update for S-REITs under our coverage. Most S-REITs reported 2QCY12 distributable incomes that were in-line with our forecasts. Moving forward, we expect DPU growth of 1.4%-9.6% per annum over FY11-FY13F (except Suntec REIT which will likely suffer DPU decline due to ongoing refurbishments at Suntec City).

Our top BUYS remain with the more defensible industrial and retail REITs with total returns of 10%-17%. We think their risk-reward proposition still appear favorable to yield-driven investors. Maintain OVERWEIGHT on the overall S-REITs sector.

____________________________________________________________________________________________________________

http://fifthperson.com/5-important-factors...st-in-any-reit/


If you’re looking for passive income, then investing in stocks that pay you a stable and growing dividend is something that you need to keep your eye open for. In that vein, REITs are great investments if you plan to invest for stable, passive income. Why so?

Firstly, REITs (or real estate investment trusts), as their name suggests, invest in real estate. And in land-scarce Singapore, property in general makes for a great long-term investment. Our country is also safe, politically stable, and well run (although some of us would disagree!) which means the value of our real estate is likely to hold and appreciate over time. And although many of our REITs also invest in assets overseas, most of them own properties that are mainly located in Singapore.
Secondly, REITs pay a high dividend yield. There are currently 35 REITs listed in Singapore with an average dividend yield of 7.5% (as at Feb 2016). With the current market downturn, some REITs have yields as high as 10% right now! One of the main reasons why REITs offer such high yields is because they enjoy tax-exempt status as long they pay out at least 90% of taxable income to shareholders. The tax breaks and high payouts mean higher yields for investors. The recent 2015 Singapore budget extended tax breaks for REITs for another five years.
Thirdly, REITs also pay their dividends (or distributions) four times a year. In comparison, a typical company usually only pays dividends once or twice a year. So if you’re an investor who wants to receive a steady, regular stream of passive income throughout the entire year, REITs will do very well for you.
So now that we’ve established that REITs offer a high, steady stream of passive income for investors, what are the important factors you need to look at before you invest in any particular REIT?

Here are five important factors you need to consider:

#1 Type of Industry
Not all REITs are made the same. Singapore REITs fall into six broad categories: office, retail, residential, healthcare, hospitality, and industrial. Each sector has its own specific characteristics that will affect a REIT’s growth, risk profile, and performance.

For example, office REITs like CapitaCommercial Trust, own office buildings. During a bull economy, businesses do well and demand for office space is high. This translates to higher rents and property income for the REIT. During a recession, the chips fall the other way – some businesses go bust, demand tumbles and office rents fall in tandem. The economic cycle largely affects the performance of an office REIT.

On the other hand, retail REITs like Starhill Global own shopping malls. Even in times of recession, many malls are usually still packed with shoppers and shop spaces are fully tenanted. Demand for retail space remains high which means rents and property income for the REIT barely drop.



All things equal, investing in a retail REIT is less volatile than investing in an office REIT. Of course, investors are aware of this and hence generally willing to pay higher prices for a retail REIT which lowers your dividend yield.

#2 Dividend Yield
This is probably the first ratio that every investor looks for when investing for dividends. While everyone enjoys a high dividend yield, what’s more important is to examine a REIT’s dividend track record.

Does a REIT pay a stable or rising dividend per share (or distributions per unit) year after year? Or does it tend to fluctuate every year?

A REIT that’s able to steadily grow its income and dividend per share year after year is understandably a more attractive investment than a REIT whose dividend payouts fluctuate all the time.



A REIT with a higher dividend yield doesn’t necessarily mean that it’s a “better” investment. For example, an office REIT usually has higher yields compared to a retail REIT, but office REITs are also more volatile and less resilient than retail REITs.

#3 Property Yield
Property yield is the amount of income a REIT can generate from a property. For example, if a property is worth 10 million dollars and earns $400K in rent in one year, then its property yield is 4%. Understandably, the higher the yield, the better. But what’s more important is to examine whether a REIT’s property yield is stable or rising over the years. A well-managed REIT will look for ways to continually improve its property yield.



One common way for a REIT to improve its property yield is to acquire yield-accretive properties. For example, if a REIT’s property yield is 4% and it acquires a new property that generates a 5% yield, the new acquisition will help to increase the REIT’s overall property yield.

#4 Gearing Ratio
Gearing ratio represents a REIT’s amount of debt over its total assets. The higher the ratio, the more debt a REIT has.

In Singapore, REITs are tightly regulated and only allowed to borrow up to 45% of their total assets. So if a REIT owns a billion dollars in assets, it can only borrow up to $450 million in loans. A REIT can borrow the money to fund new acquisitions for growth, upgrade its buildings, etc.


The lower the gearing ratio, the more conservative a REIT is. At the same time, a high gearing ratio does not necessarily mean that a REIT is a poor investment – it just means that a REIT is willing to take on more debt (and risk) for growth.

#5 P/B Ratio
P/B ratio measures a REIT’s share price against its net asset value (NAV) per share. Theoretically, a P/B ratio of 1 indicates a fair valuation. A ratio above 1 means a REIT is overvalued and a ratio below 1 means it is undervalued.

For example, if a REIT’s share price is $1 and its NAV per share is $2, then its P/B is 0.5 – essentially you’re only paying 50 cents for every dollar of net assets.



In practice though, you shouldn’t simply rely on P/B alone to value a REIT. Other important factors, like the ones we’ve discussed above and more, must also be taken into consideration when choosing to invest in a REIT.

While REITs in general are great investments for dividends, not all REITs are equal – it’s important to pick only the best-managed REITs that are able to pay you a long-term growing dividend and appreciate in value over time.

This post has been edited by prophetjul: Jun 12 2021, 08:34 AM

kudos to prophet !!!! but not many vested in Sreit,, not so crowded over here ...... see singapore shares thread only few were active ........ anyway will check on this thread more often, lastly thanks for all the news posting ......

Finally there is a thread on singapore reit. Will come here more often.

cw

Looks like we are still the few!

Anyway the purpose is to inform others know theres another REIT out there.
Maybe with better rewards?

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Added on September 13, 2012, 8:39 amHi

Welcome.

i will try to update the news.

However, you guys have to post so that there is a BUMP* on the thread.
Otherwise it will disappear into oblivion!

This post has been edited by prophetjul: Sep 13 2012, 08:39 AM

hi sifu-sifu
i am attracted by that 5%+ DY, "defensive" nature and no tax part ..

if newbie like me wants to buy these S-Reits .. how do i go about it ?
(the only thing i have is a Hong Leong E-broking account .. )

u can check the answer at below thread ..... if not found ur answers try read from the beginning sure u will get more info than what u ask .....

i think the killer part is the cost of trading shares overseas. the exchange rate, tradings fees, stamp duties etc...

all these cost might constitute a few % of your capital, unless you have big capital to invest

i sugggest that in buying REITs we tend to HOLD for the passive income from DPUs

In my trading S-REITs my total cost per trade is around

a) Brokerage - 0.6%
b)Stamp Duty - 0.1%
c) Clearing fee - 0.03%
d) Misc cost - Rm50

Total Approx cost = 1%

Unless you are actively trading the stocks, its nota real concern.

Compare the yields from M-REITS ....6%(before tax)

Vs S-REITs - There are quite a few still offering more than 7% DPU.

As for exchange rate, ONE of the purposes in buying singapore shares is i believe our Ringgit will continue to
DEpreciate against the SGD in the long term.

Do you need open sg bank account for reit to bank in dividend?

ASEAN Trading Link start from 18th sep

so we can trade S-REIT when the link connected?

S-REIT FTW!

Hi good to have a dedicated thread for S REIT. Only started SREIT investment few months ago, and so far giving already >10% paper profit excluding dividens. Anyway I am not concerned abt the paper profit since I am in for a long period and gunning for stable passive income like many REiTs investors

One question, i am using itrade CIMB. Recently when i received dividens for Q2/2012, I see that for every counter, I was deducted SGD10 from the dividen i received. Eg: if I receive SGD100 for my Suntec REIT, I got only nett SGD90 into my account. Similarly goes for other REiTs, 10 bucks is deducted from the dividen received. So if i have total 10 REIT, i got charged 10 bucks x 10 = 100 bucks flat every quarter

What is that 10 bucks for? Is it common for other brokerage firm as well? Pls advise, thx

This post has been edited by Vector88: Sep 15 2012, 01:12 PM

thru local broker firms answer is no need but charges for admin applicable as one of the forumers questions below ...... reply after this ......

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Added on September 16, 2012, 12:03 amis common as for my OSK brokerage firm ...... same charges for administration......

This post has been edited by cwhong: Sep 16 2012, 12:03 AM

which is the most cost effective SG trading and banking account to open

as long as decent services i.e. can access quite easily from Msia

Dont plan to remove funds from there so exchange rate will incur only during initial placement

Result announcements coming next month!

Industrial REITs – OCBC

27 September 2012
Comments Off



STILL HOT ON PORTFOLIO MANAGEMENT ACTIVITIES

Healthy debt maturity profile

Increased investment activity

Subsector yield remains attractive


Active capital management


Industrial landlords continue to be very engaged in their capital management activities. For 3Q to-date, we note that two industrial REITs, namely AIMS AMP Capital Industrial REIT and Mapletree Industrial REIT, had announced the issuance of fixed-rate notes, while Sabana REIT had entered into a financing agreement for S$258.6m additional Commodity Murabaha facilities. Based on our understanding, the proceeds from these issuances will be used to refinance part of their existing borrowings. This is in line with our view that the industrial REIT subsector’s debt maturity profile will remain healthy, with limited refinancing risks in the near term.


Pickup in acquisition activity


We also observe that there was a pickup in investment activity during the period. The most active REIT was Cambridge Industrial Trust, which announced the proposed acquisitions of Teban Gardens Crescent, 30 Marsiling Industrial Estate Road 8, and 11 Woodlands Walk for an aggregate consideration of S$97.3m. With just days to the close of 3Q, we estimate that the total subsector acquisition value for 3Q will be at S$182.9m. This significantly exceeds the S$66.0m acquisition size clocked in 2Q, albeit still lower than the S$678.2m value registered in 1Q. We are currently maintaining our view that the subsector acquisition activity is likely to be skewed more towards smaller REITs. We also believe that further acquisitions in the industrial space may possibly involve a combination of debt and equity, given that the subsector aggregate leverage is set to increase after funding committed acquisitions. In addition, some REITs (e.g. Ascendas REIT and Mapletree Logistics Trust) have also turned to capital recycling via divestments to enhance their portfolio returns, in line with our expectations.


Maintain OVERWEIGHT


We are retaining our OVERWEIGHT view on the industrial REIT subsector due to its high yields (7.0-7.1% for FY12-13F) and growth potential. Cache Logistics Trust remains our preferred pick, given its robust portfolio, healthy financial position and attractive forward DPU yield of 7.1%.

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Added on September 28, 2012, 9:35 amOffice REITs – OCBC

26 September 2012
Comments Off



RENTAL DECLINES LIKELY SLOWING IN 3Q12

Rental decline likely slowing in 3Q12

Limited supply till 2H13

Maintain OVERWEIGHT




Office rentals decline likely to slow in 3Q12


We believe the office rentals are likely to show a more subdued dip in 3Q12 after three consecutive quarters of declines since 3Q11. Over 2Q12, Grade A office rentals fell 4.7% QoQ to S$10.10 which cumulated in an 8.7% decline over three quarters. Core CBD vacancies, however, showed a reversal from a rising trend in 2Q12 to register a 0.9 ppt dip to 8.4%. A similar picture was seen for islandwide vacancy rates which declined 0.9 ppt to 6.4% (end 2Q12) from 7.3% (end 1Q12). We expect a similar trend for vacancies in 3Q12 which would likely contribute to a muted rate of rental decline.


Office absorption coming in above expectations


The 2Q12 decline in vacancies was mostly due to net absorption coming in at ~470k sq ft – in line with our forecast but markedly above market expectations which had anticipated a softer demand on macro-economic weaknesses. Grade A capital values also dipped an estimated 2% QoQ marginally to $2,450 psf in 2Q12 (1Q12: S$2,500 psf) as investment sales slowed and market players adopted a wait and see attitude in light of the residual uncertainty in the macroeconomy.


Limited supply till 2H13


Looking ahead to the remainder of FY12, it is likely that a situation of limited office pipeline completion would ensue with only ~70k sq ft of office space slated for opening – a mixed use development in Upper Pickering St – which has been fully pre-leased to AGC. We see this dynamic continuing until mid 2013 when Asia Square T2 and The Metropolis T1&2 are slated for completion.


Maintain OVERWEIGHT on Office REITs


We note that, since we have upgraded Office REITs to OVERWEIGHT on 21 Aug 2012, our top pick CCT has appreciated 4.0% against the STI’s 0.2 gain%. We maintain an OVERWEIGHT rating on Office REITs. Our top picks in the sector are CCT [BUY, FV: S$1.53] and FCOT [BUY, FV: S$1.23].

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Added on September 28, 2012, 9:35 amhttp://sreit.reitdata.com/

This post has been edited by prophetjul: Sep 28 2012, 09:35 AM

I prefer opening a trading account and bank account in Singapore. Long run, it should be a lot cheaper.

I use UOB Kay Hian and DBS. I made a trip to Singapore and sort out both accounts in 1 morning...

After that, did everything else online.. Never have to make another trip there so far..

This post has been edited by Anic: Sep 28 2012, 03:26 PM

Wow! The industrial REITs are rising fast!

Possible to share your experience in detail? Eg. How much do we need as a minimum deposit? What kind of documents are needed? Etc.
Thanks.

This post has been edited by jjsia: Sep 29 2012, 06:37 PM

For DBS, I open a DBS Saving Plus account. I just brought my passport, IC and SGD. At that time, it was ok as the ac min balance was SGD500 and if below, there is a fee of SGD2 per month but now, looks like they have revised the min deposit to SGD5000 :
http://www.dbs.com.sg/personal/deposit/sav...gners/fees.page?


I also looked at Standard Chartered Bank and their Esaver account is pretty good. No min deposit/balance, no monthly fees.
In addition, I have heard that if one TT from their Malaysia Standard Chartered Bank account to their Sing Standard Chartered Bank account, there are no charges. I have not tried this myself.

http://www.standardchartered.com.sg/person...ver-account/en/

From their website:
High Interest Rates
No lock-in period
No monthly fees
No minimum deposit
No minimum balance
No fixed term
No hardcopy statements to file
No ATM cards, passbooks or cheque books to lose


I think when you choose a bank, other than considering the bank fees/min balance, it is important that they are one of the below banks (maybe these are all the banks in Sing? I have no idea):
For Uob Kay Hian, to open an account, you need your IC & Income statements:
http://www.uobkayhian.com.sg/page/site/pub...copenSGXfr.html

If you don't have a CDP account, they will do it for you too. In Singapore, only 1 CDS account... not like in Malaysia. 1 CDS account for each broker.. pensang.

Anyway, found this useful thread:
http://forums.hardwarezone.com.sg/stocks-s...-a-3628498.html

Hope this help.

---

Added on September 30, 2012, 9:03 amThanks for the alert...

I like to check out comparison table in this blog http://mystocksinvesting.com/:
http://mystocksinvesting.com/wp-content/uploads/2012/09/Singapore-undervalued-REIT-stock-comparison-5-Sep-2012.png

This post has been edited by Anic: Sep 30 2012, 09:03 AM

Thank you. Standard chartered eAccount looks interesting. Now, contemplating which broker/investment bank should i choose.

What about interest rate risk? in the end you will be spending RM not SGD.

I think u meant currency risk.

U mean forex risk.

LOL whatever you call it.. it's the same thing

Erm, nope. Interest rate risk and currency risk are too totally different risks. Google it to find out more.

I think it depends on how soon you need to spend the RM...

I am not concerned about interest rate risk/currency risk/forex risk (whatever it is.. )
1) I am in for longer period and the money is for retirement..
2) I have only seen SGD getting more expensive to buy and haven't seen it become cheaper yet... Is there a possibility of the trend will reverse? I doubt it but I can't say there is zero risk...

Let us know which one you choose..

This post has been edited by Anic: Oct 1 2012, 09:16 PM

(deleted)

This post has been edited by wodenus: Oct 1 2012, 09:27 PM

This.

Do you see the trend of SGD vs MYR reversing anytime soon.....not for me.

If anything, we should see SGD=3MYR pretty soon.

I have to buy some more Singapore dollar..

not so soon lah .... in 5 years time is possible if our Gov still dun wanna wake up ...... but good for exporting biz (commodities and raw materials) so that we stay at competitive range..... but who like to travel a lots is different story lah ...... so either side can be negative or positive to our country ...... what am i talking

5 years is pretty SOON? Dontchathink?

Considering in 1970, twas 1=1, 2012 is 1=2.5, 2017 = 3 ??????

---

Added on October 2, 2012, 1:27 pmWhen i invested SREITs early this year, twas 1 = 2.42............ hmmmmm

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Added on October 2, 2012, 2:59 pmLooking at the online trading brokerage between UOB and SC, seems SC fees are cheaper.



This post has been edited by prophetjul: Oct 2 2012, 02:59 PM

For those who are interested with SC, worth reading this post:
http://help-your-money.blogspot.com/2011/0...ine-shares.html

Thanks anic.

Thanks for the link!
ITS VERY helpful!

On the opening of accounts in Singapore, do you just open over the counter?

ie with all your documents and $$$$?

No problem for Msian opening a bank account?

As i understand, local Msian banks do not allow funds transfer to a Sing account held by a Malaysian Citizen.
Can anyone verify that?

TIA

This post has been edited by prophetjul: Oct 3 2012, 09:47 AM

Glad that it helps..

Yes, over the counter. I didn't face any problem opening the bank account. DBS officer just asked what is the purpose, and I said for investment. Can't remember if Standard Chartered Bank officer asked the same question.

I don't think there is such restriction. Though I haven't done it myself but my friend did it before. If this is not allowed, how do Malaysian parents TT money to Children studying in Singapore?

What stock brokers are you using?

i tried to TT some funds to my Msian friend in UK. It was not allowed.
Maybe only for education?

I use UOB Kay Hian. I didn't shop around at that time when I opened the ac. I was new then and didn't pay attention to fees etc..

This post has been edited by Anic: Oct 4 2012, 11:10 AM

Result Announcement dates:

Sabana: 18 Oct
CMT: 19 Oct
MIT: 23 Oct
CLT: 24 Oct
MCT: 25 Oct

If you are using UOB Kay Hian, why didnt you use UOB for Banking?

Yay! Another round of cash distributions coming next month!

starhill global on monday.wondering if its good haha

Anyone could share their experience on Singapore's brokerage firms and rates? Standard chartered trading account looks interesting.

ok so correct me if im wrong pls, very new in this... as a malaysian i will then need to open a scb trading account and a savings account with them and that should do it so I can start trading?

cross border trading thru malaysia broker is also possible but its very expensive around Rm$80

I need clarification or input on that too.

You will first need to open an eSaver account with your Passport and $$$.
Then SCB will send you your userid and pin via mailer.

When you received your userid and pin than proceed to login to your account.
You will then need to do an online applications for your trading account.
Once you trading account is approved, you can click the online trading button that will bring you the trading platform.

This post has been edited by aronteh: Nov 1 2012, 01:23 PM

Ok great and thanks for the info

So all I need to do is go into Spore and open esavers account. CDS account no need?

You don't to open CDS account for Standard Chartered Bank Trading Platform as your shares will be deposit into a nominee account.

Nominee account? Is it possible to open a principal account? I don't think we can apply IPO for nominee account. Plz correct me if I am wrong. Thx

For IPO you need to use other broker. SCB only use nominee account.

Any major difference between nominee account n principal (normal) stock broking account? Is it the same with Malaysia? Thanl you.

For one, nominee means the stocks are under the banks name, you cannot vote at Agms.
If banks goes under, you may lose yer stocks. You stocks maybe used for shorting.

Wow, any more pointers that I should look out for?

i bought SG REIT with HwangDBS once. (back in year 2011 Feb. if i remember correctly)
below are the fees

Singapore brokerage fees 0.1% or min SGD12
Clearing fees 0.04%
Trading fees 0.0075%
Malaysia HDBS commission fees 0.8% or min RM40
Malaysia c/stamp MYR1 per MYR1,000 which is 0.1%

Wasn't thinking at that time..

---

Added on November 25, 2012, 9:37 pmthere is some information about this here: http://forums.hardwarezone.com.sg/stocks-s...-a-3628498.html

This post has been edited by Anic: Nov 25 2012, 09:37 PM

so we just open standard chartered esaver account and CDS account in any standard chartered bank in SG, then we can start trading in SG?
thanks

---

Added on December 11, 2012, 12:34 pmi got a reply from standard charted bank in sg, saying that I need to have an address in singapore to open a bank account there?
i do not have sg address, means i cannot open an account there and thus trading and cds account?



This post has been edited by jtleon: Dec 11 2012, 12:34 PM

also if say I sell my shares, how can I get the money withdrawn or transfered to KL?

if buy thru local brokerage will get the money from local brokerage also ..... but the conversions of currency needs to follow current one (of course with some admin fees or some sort like that)

em... this requirement wasn't there when i opened my account.

I checked DBS website and their requirement for foreigner is much simpler, however there is monthly fee though for below S$5K balance:
http://www.dbs.com.sg/personal/deposit/sav...equirement.page?

To share:


Attached File(s)
 sgreit181212all.pdf ( 926.02k ) Number of downloads: 306

Danke!

Temasek Unit Targets $1.36 Billion in REIT IPO

Singaporean property developer Mapletree Investments Pte. plans to raise up to 1.68 billion Singapore dollars ($1.36 billion) by listing a China-focused real-estate investment trust in Singapore, in what would be city-state's largest initial public offering in two years.

The planned flotation of Mapletree Greater China Commercial Trust would be Singapore's largest since Hutchison Port Holdings Trust raised US$5.5 billion in March 2011. It will also be Singapore's biggest-ever REIT offering, topping Mapletree Commercial Trust's S$949.5 million IPO in April 2011 and strengthening the city-state's position as a regional hub for REIT listings.

Mapletree Investments' China-focused REIT plans to sell at least 776.6 million units to institutional and retail investors at an indicative price range of S$0.88-S$0.93 each, according to a preliminary prospectus filed Friday with Singapore's central bank. The number of units available to such investors could rise to 856.5 million if an over-allotment option is exercised to meet strong demand, the prospectus said.

Cornerstone investors—among them Norges Bank Investment Management and units of AIA Group, CBRE Group, Henderson Global Investors and Morgan Stanley—have already agreed to take up about 953.5 million units, the prospectus showed.

Mapletree Investments, the real-estate arm of Singaporean state investment company Temasek Holdings Pte., would take up 851.7 million-931.6 million units, depending on whether the over-allotment option is exercised.

Mapletree Greater China Commercial Trust—which would be Mapletree Investments' fourth REIT—plans to list on the Singapore Exchange on March 7, the prospectus said. It will take orders from institutional buyers beginning Monday, before opening its offering to retail investors on Feb. 28.


Just Sharing Info

link to the PRELIMINARY PROSPECTUS

Hi All,

Anyone here using SG trading account to buy REITS? Which would be the cheapest brokerage when divvy auto debit to your sgd bank account,would there be any charges? Thanks in advance sifu

This post has been edited by CP88: Feb 15 2013, 10:10 PM

If you using maybank nominee account, now can activate for global trade. Trade thru maybank2u->global trading.
To activation global tading -Maybank will send the form to fill and the rate(SG, Indonesia, US and etc) in pdf scan image.
I have the attachment at my office computer send by maybank ampang park. I attach tomorw when i go to office.
The same rate charge broker fee as buying m'sia reits but in SGD, as i remember.

Not mistaken the dividen will bank back to ur maybank account.
I havent buy any SG reits, still pending activation since today. Hv call the jalan ampang, stated me to wait till next week monday.

if you are using maybank direct account, then the remiser will change your online to powerbroker, then you cant trade online for nominee(if you hv) cds account anymore.

hope this can help you.

Thanks alot sifu. But as far as I know for nominee there will be a surcharge of RM2.50 for each divvy received (Based on my experience on Hle nominee account).

Yes, is true. Cant apply IPO , getting divident after 5 working day and dont recieve company financial statement.
Good thing is , there is is right issue, doesnt need to fill the form ourself juz a call to Investment branch.


Why i open nominee account....long story didnt do research when i want to open to buy Maxis IPO. After went tru the Q & A about stock jz realize my mistake. Lesson learn going forward. Happy investing

This post has been edited by felixmask: Mar 13 2013, 08:38 AM

Morning CP88,

As promise attachment for the global trading charges.


Attached File(s)
 maybank_nominee_global_trading_charges.pdf ( 83.94k ) Number of downloads: 104

Thanks for the sharing. Appreciate it.

Mapletree's Greater China Reit priced at 93 Singapore cents



Mapletree Greater China Commercial Trust (MGCCT), the largest real estate investment trust (Reit) to be listed here to date, has been priced at 93 Singapore cents, the top end of the offering price range.

This was a result of the interest received from institutional investors during the bookbuilding process, it said on Wednesday as it registered its final prospectus with the Monetary Authority of Singapore.

The price range was guided at between 88 and 93 Singapore cents.

MGCCT will raise about S$1.68 billion in gross proceeds from the initial public offering. It will use the sum, together with HK$12.15 billion (S$1.94 billion) from an unsecured loan facility to pay the vendors for the acquisitions of the properties in its portfolio and for costs incurred from the offering and loan facility, as well as for working capital.

I use CIMB itrade to buy.pretty high charge considering the forex.min SGD28 + $40rm + etc etc fees=about rm$100+
and my dividend they deduct min SGD10 service charge,while Hle deduct SGD6+rm10

that is the bad news,but the good news is my portfolio is doing pretty well 50% capital gain in 1 year

EXPENSIVE...MUST buy big lot.

I still havent decide still looking/searching and studying.

Can share what u buy SREITS?

i 'small fish' only can only buy 1 lot haha
i buy only starhill global reit since it has property in singapore,malaysia,australia,japan,china

better then noting...Do you look at Business Trust.

hmm not really since i am more into REIT.wants to buy other like suntec,capitamalls trust but they were way too pricy than what i can afford,so at the end the cheapest one starhill global 60cents haha

Hi guys.. look what i've found here!

Mapletree Greater China Commercial Trust: How will the court decide over Gateway Plaza loan claim? - We don't know – that's up to the court. But pending litigation in Supreme People’s Court of China could well be the most happening thing for the Trust in coming months. Along with property cooling measures. http://www.investorcentral.org/show_text.php?textid=17492

This post has been edited by AshaLee: Mar 14 2013, 10:09 AM

So, any1 think which reits in Singapore worth buying? Almost all or all above NAV?

suntec reit is below nav.....

Yes. Suntec is undergoing renovations now. Will be completed be year end.
DPU is expected to increase.

Thanks for the update, vested on it hopefully will show us flying colours reports....... Hooray

U are welcome.

http://online.wsj.com/article/SB1000142412...1312805200.html
SPH considering REIT

This post has been edited by ryan18: Mar 13 2013, 06:41 PM

Yup. Seletar Mall completing 2014 year end.

Wow! Thanks for sharing.

Do you like fraser commercial trust? CIMB hardcore recommending this one. Still thinking.
So if use cimb (malaysia) account to buy Singapore stocks/reits, how much they charge for the dividend? I mean, how many % could be loss on dividend?

Thank you for sharing.