A sign of weakness leh..

IGB reit purely retail.

Thanks to Covid 19 😁

CMMT was quite poor before tht, now even worse.. Case in point, go check the value which they paid for Tropicana City Mall vs. the Current Market Value..

Yeah the yield is still decent now. It's probably one of the more resilient MREITs in this environment, aside from Al Aqar. They are probably the only REIT that benefits directly from all the government spending being rolled out, BPN and the bonuses to civil servants.

.
Soon they will have an office reit. It will be called IGB Commercial Reit. Probably in 2021

how about MQREIT, any opinion on this? good discount, yes.

If not mistaken mostly are office. Are renting offices doing good nowadays???

I'd stay away from Office,
Singapore 80% employers is okay for employees to work from home.

For me now, I feel KIP and Al Aqar is the safetest?
Then KLCC, Pav, IGB, Sunway..

thanks for the insight.

how about YTLreits?

Very true,... this is the phenomenon today after employees all over the world started working from home and telecommuting.

I read many articles in the last many days mentioning :-
1) big city employees in the USA started shifting to the suburbs just so that they can work from their homes in the suburbs.
2) Credit Suisse in Switzerland saying they need to layoff employees and would not need so much office space anymore.
3) 4 out of 5 emplyees in SG preferred to work from home.

I wonder how will all the above affect the Office REITs in the world ?

Do SG or MY have residential Reits?

Theoretically, should be stable as most of their assets are under master leases whereby they only collect rental from the hotel operators, most of which are quality tenants. The question now is whether the hard-hit operators can afford to pay the rent? Or the hotels in Australia which are not under master leases agreement can survive the current pandemic?

This post has been edited by patling63: May 25 2020, 03:44 PM

The working from home and video conferencing affect the most on Airlines and travelling industry due to reduction in commercial travelling.
But still, it may resume to normal once pandemic is over.
WFH and video conferencing are not something new, it has been there for years, just the pandemic force people to adopt it.
Just like online shopping is available, still people like to go to malls even just for window shopping.
They co-exist.

Impact on office, yes, it does, but should be minimal. Offices are still needed due to confidential and security for company information. Let every company confidential info being stored at home PC even with cloud computing, may pose a lot of security issue.
What if the employee decided to quit time, headache to retrieve back the data also.
Certain industries can WFH, but not every industry can. WFH has its limitation. Offices nowadays are not only a place for employee to work, but a place for servers as well.

Now matter how, offices demand is still highly correlated with economy growth. So the risk is on economy growth, WFH threat should be minimal.

I'm not sure abt MY, but SG had a residential REIT earlier. It had assets in Japan, and the REIT goes by a Japanese name.

It had since been delisted.

The closest today would be Ascott REIT, which has serviced residences among its assets.

Looks like office space is going to be directly-correlated with economic development then, going by your narrative in the above.

Think I'd start to stop loading-up on Office REITs and Diversified REITs which has a big percentage inside Office space.

https://www.channelnewsasia.com/news/asia/m..._uid=F8ClKV7TQA

Extra costs need to be borne by employers if the Office continues to be used as a working place rather than telecommute.

Hence, if Office rental is high, this will certainly push employers to encourage the WFH concept.

Sunway? they own hotels

Thats why office reits are not so attractive nowadays. Our city has overbuilt offices. Just which 1 are more preferred only.

Malaysia office space is facing glut issue instead of facing risk of WFH.

There are simply too many offices space being built over the last few years, same with Malls.
This was highlighted before a year or two ago.

As identical to Malls, not all office will died down, just like prima malls like Midvalley, Sunway still get high demand, so does those prime office spaces.

Management of the building needs to take more effort to secure tenants by then and maintain their building in top shape.

Office space demand is tied to economy growth as well as oil price. As some office space is highly depended on O&G sector as well.