Is It Time To Buy Singapore Reits?

According to an article in Forbes magazine, Geo Group and CoreCivic are providing healthy yields of 13.5% and 11.4% per annum respectively. “As more people develop e-commerce platforms, they will need offices to house these new companies. Regardless of the type of e-commerce business, physical infrastructure will still be needed to support it. “To allow for the fast speeds of 5G, telecommunications companies will need to set up base stations to provide coverage. These companies will seek to rent space on rooftops and inside buildings to set up the infrastructure, such as repeaters, to send out 5G signals.

Rooftops will then become another source of revenue for the buildings’ management, which will feed into the REITs’ earnings,” he says. While retail investors can directly buy into REITs, Khoo highlights the benefits of investing in a REIT fund. “Investing in a REIT fund gives you access to the expertise and resources of the fund manager, which the average retail investor would have difficulty accessing. The Manulife Investment Asia-Pacific REIT Fund is far the largest in the category, with a fund size of RM801.49 million as at Jan 10. “If you visit Sydney or other major cities in Australia, you will find that the skylines in the central business districts have largely remained unchanged for many years. There is not much new supply of commercial space coming into the market,” he says.

Lastly, to check the percentage for my Stock, REITs, Cash, ETF, and derivatives. Most of my investment was going into REITs for stable income dividend, I can withdraw anytime when I need to use for fast cash, which is better than bank deposit and fixed deposit rate. The ETF I have consist of growth type and dividend type, this is for diversification and reduce the risk.

“The underlying earnings of REITs are underpinned tenancy agreements, which provide earnings visibility. Investors consider REITs a defensive asset class due to the recurring income, which enables them to pay dividends on a regular basis,” says AmInvest’s Wong. REITs to remain underpinned by rental growth from their portfolio of new economy assets including logistics properties and data centres. We’re pleased to report that Ascendas Real Estate Investment Trust shareholders have received a total shareholder return of 18% over one year. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time.

Meanwhile, private investors are actively looking to build day hospitals in the region. Within the STI’s industrial REIT, we favour Ascendas REIT who has strong inorganic growth visibility, and will continue to acquire assets that can future-proof its portfolio. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges.

The recovery to pre-Covid level by 2022 is still unlikely as flights and passengers are likely to remain limited while international travel should remain controlled. The STI’s heavyweights, Singapore banks (Oversea-Chinese Banking Corp Ltd , DBS Group Holdings Ltd, United Overseas Bank Limited , collectively around 34% of STI), are among the top companies in terms of profit growth for the 2Q21. Most companies managed to beat earnings’ estimates and on aggregate, Straits Times Index’s earnings grew 93% YoY in the second quarter , fuelled by a mixture of organic growth and base effect. AFTER a steep decline in corporate earnings last year (-41% year-on-year ), earnings per share of Singapore equities have started to improve. Maintain HOLD recommendation given the impending 2nd tranche of placement which we anticipate in 2H18 despite the weakness in share price.

Last year, the S&P Asia Pacific REIT Index achieved a total return of 23.01%, which is more than five times the year before at 4.29%. REITs also outperformed equities in Asia-Pacific, which generated a total return of only 18.04%, according to the S&P Asia Pacific Broad Market Index. Midas Holdings , a supplier of aluminum extrusion profiles for train carriages, gained 3.6% to 87.5 cents. DBS Group Holdings raised its share price estimate to S$1.10 from 93 cents and maintained its “buy” rating, saying its order book of about 1.5 billion yuan will boost earnings in the next two years. Ascendas Real Estate Investment Trust , Singapore’s second-biggest publicly traded REIT, declined 5.1% to $1.67 after selling shares at a discount.

“The Singapore FTSE REIT Index was up 23% in November 2019 while Australia REITs returned 25% during the same period. However, Hong Kong REITs underperformed, posting a return of just 4%, weighed down the protests in the city,” says Khoo. The views expressed are of the research team and do not necessarily reflect the stand of the newspaper’s owners and editorial board. Given the possibility of controlled international travel, foreign tourist count is unlikely to swing back to pre-Covid level which may cap earnings. Unlike the aviation sector, Genting is able to fall back on the domestic market for its gaming operations.

Interest rate keep on increase and will be negative to REIT sector.Beware and avoid REIT at all cause. Mary, you need to stick back to your initial buy plan, keep or long term or short term? Be careful guys…now is rising interest rate environment, reit not only will drop,maybe will crash. Our TP is based on CY21E GDPS/NDPS of 5.8sen / 5.2 sen (from FY21E GDPS/NDPS of 7.6 sen / 6.8 sen) and an unchanged +2.5ppt spread on a lower 10-year MGS target of 2.80%. Our applied spread is at +2.0SD, on par with pure retail MREITs under our coverage to account for earnings risk in light of the Covid-19 pandemic, considering its exposure to the retail and weak hospitality segments.

Rents for warehouses and business parks eased slightly by 1.3 per cent and 1.1 per cent respectively in 2020, while rents for multiple-user factory space retreated by 1.8 per cent. Founded in 2004, Link REIT was the first REIT listed in Hong Kong and is currently the largest in Asia in terms of market capitalisation, which stood at HK$171.69 billion as at Jan 3. It has assets in Hong Kong and Mainland China, with a combined portfolio of about 13 million sq ft of retail and office space plus 56,000 parking bays. From a country perspective, Manulife is eyeing buying opportunities in Hong Kong’s REIT industry, which has seen share prices drop 10% to 20% since the start of the Hong Kong protests.

Mapletree is one of the major players in the Singapore REIT space, managing S$55.7 billion worth of office, retail, logistics, industrial, residential and lodging assets as at March 31, 2019. It currently manages four Singapore-listed REITs and seven private equity real estate funds, which hold a diverse portfolio of assets in Asia-Pacific, Europe, the UK and the US. Real estate investment trusts in Asia-Pacific saw healthy returns in 2019, outperforming equities in the region. Fund managers expect this asset class to remain attractive this year, citing its growth in the currently low interest rate market environment.

As at the point of the time, the STI index still suffering the loss of 5%, while the portfolio is able to gain 7.2% after including the losers like Genting, Genting Malaysia. Singapore is slowly recovering, as 45% of STI index was from UOB, OCBC and DBS, the three Singapore bank that is hardly hit by the Pandemic, that leads to the STI index looks unfavorable. Among them, I prefer Investing Note, as it can also add in the DLC derivative investment vehicle in my portfolio. One thing bad about this portfolio management was I unable to put in my Option trading derivative if have a chance to find one I will inform at my blog. In fact, an analysis by Morgan Stanley analyst Wilson Ng showed that it even outperformed industrial Reit giants Ascendas Reit, Mapletree Logistics Trust and Mapletree Industrial Trust from the time its merger was first announced. For FLCT, it had the blessing of its logistics assets which rode on increased demand driven by the e-commerce boom amid country lockdowns.

According to CBRE, leasing for business parks was more muted in Q1 2021, with business park rents in the city fringe and the rest of the island retreating 0.9 per cent q-o-q to S$5.75 psf/month and 1.4 per cent q-o-q to S$3.65 psf/month respectively. Pandemic-linked construction delays have put the supply pipeline for this year at 1.4 million square feet, which may place some pressure on rents, CBRE added. On the other hand, with safe-distancing measures in place, retail rents sank by a sharper 14.7 per cent in 2020, while office rents contracted by 8.5 per cent as many employees worked from home for the better part of the year.

The company said profit in the second-quarter slumped 60% to 47.2 million yuan ($$10 million) compared with the year before. KUALA LUMPUR, Feb 3 — Malaysia today recorded an additional 5,720 new Covid-19 cases, health director-general Tan Sri Dr Noor Hisham Abdullah said. Download this topic in different formats or view a printer friendly version. I have made a portfolio of your stock in Stockscafe for monitoring purposes. “If revenue enhancement and cost savings are not coming through, there’s really no compelling reason for a merger,” he said.

AmInvest’s Wong says in the industrial space, logistics warehouses are well taken up due to the growth of e-commerce as well as the drive for corporates to streamline their supply chains through the occupation of more modern and efficient facilities. “The long-term prospects for data centres are structurally positive, which is attributable to the intensification in digitisation. The construction of commercial developments has been more measured since the global financial crisis, leading to a regional-wide situation where new supply coming onstream is well absorbed tenants. ONE plus one has been less than two for most Singapore real estate investment trust (S-Reit) mergers, despite the promises of synergistic benefits and cost savings managers have dangled before unitholders when rallying them to vote for such deals.

“In line with the general investment advice to have diversified investments, REIT funds provide access to a diversified portfolio across assets, sectors and geographical locations, with the portfolio manager adding value through stock selection. Ascendas Real Estate Investment Trust’s earnings per share are down 2.4% per year, despite strong share price performance over five years. Since EPS is down a bit, and the share price is up, it’s probably that the market previously had some concerns about the company, but the reality has been better than feared. In the long term, though, it will be hard for the share price rises to continue without improving EPS. At the same time, Dr Lee reckons that manufacturers may shelve expansion plans amid the uncertain outlook until demand proves sustainable. He expects rents for multiple-user factory space to remain depressed, while rents for warehouses are likely to improve – barring an increase in stock – on the back of the growth in e-commerce.

But right after the crisis, we saw REITs become very resilient, picking up momentum when customers and investors returned to the asset class. Our observation shows that in both interest rate scenarios — during the interest rate hike cycle and interest rate cut cycle — REITs in Asia performed relatively well compared with the equities market,” he says. AmInvest’s Wong points out that portfolio diversification is a key advantage in investing via REIT funds.

The next runner was consumer services that including leisure and hospitality, GENTING and GENTING MALAYSIA are one of them, I invest this as I think this is undervalued at the point of time, it will recover skyrocketed once the travel ban is lifted. OUE Commercial Reit acquired OUE Hospitality Trust and its hotel assets such as Mandarin Orchard Singapore and Crowne Plaza Changi Airport, and its fate is tied to the hospitality industry which is affected by Covid-19. “In many acquisition attempts , management will always paint it as ‘one plus one equals three’ and hence pay a very high value in terms of goodwill. But over the years, some of this goodwill never materialises and is eventually written off.” Whether you are looking to buy or rent properties, we have the most comprehensive property listings in Malaysia. According to the S&P/ASX 200 Index, Australian REITs had registered a total return of 19.36% for the year ended Dec 31, 2019, providing an indicative dividend yield of 4.5% per annum.