Singapore REIT Fundamental Analysis Comparison Table – 12 September 2016

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 756.17 to 768.70 (+1.66%) compare to last post on Singapore REIT Fundamental Comparison Table on August 8, 2016. The index is rejected at the declining trend line resistance with an Evening Doji Star reversal pattern. Base on chart pattern, upside is limited although the index is still in bullish territory. SGX S-REIT (REIT.SI) Index increases from 1162.02  to 1183.53 (+1.85%)

ftse-st-reit-index-5y-sept-12-2016ftse-st-reit-index-6m-sept-12-2016

  • Price/NAV increases from  1.003 to 1.017 (Singapore Overall REIT sector is slightly over value now)
  • Distribution Yield decreases from 6.96% to 6.83% (take note that this is lagging number). Less than half of Singapore REITs (16 out of 39) have Distribution Yield > 7%. Not all the REITs have attractive yield now. A number of REITs like Capita Comm Trust, Capitaland Mall Trust, Frasers Centrepoint Trust, Keppel DC REIT, Mapletree Comm Trust, SPH REIT have less than 6% distribution yield. Selection of Singapore REITs have become much more important now because not all the high yield REIT has strong fundamental.
  • Gearing Ratio decreases from 34.50% to 34.44%.  20 out of 39 have Gearing Ratio more than 35%.
  • Most overvalue is Ascendas iTrust (Price/NAV = 1.623), followed by Parkway Life (Price/NAV = 1.549) and Keppel DC REIT (Price/NAV = 1.369)
  • Most undervalue (base on NAV) is Far East HTrust (Price/NAV = 0.645), followed by Sabana REIT (Price/NAV = 0.65) and Fortune REIT (Price/NAV = 0.779).
  • Highest Distribution Yield is Sabana REIT (9.52%), followed by Soilbuild Biz REIT (9.01%) and Lippo Malls Indonesia Retail Trust (8.95%)
  • Highest Gearing Ratio is Croesus Retail Trust (45.3%), iREIT Global (41.8%) and Sabana REIT (41.2%)

singapore-reit-fundamental-analysis-and-comparison-table-12-sep-2016

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.

  • Singapore Interest Rate increases from 0.37% to 0.38%.

singapore-interest-rate-sept12-2016 sibor-sept-12-2016

  • 1 month decreases 0.63458% to 0.62233%
  • 3 month decreases from 0.87630% to 0.87192%
  • 6 month decreases from 1.15072% to 1.15071%
  • 12 month decreases from 1.31250% to 1.31183%

singapore-manufacturing-pmi-sept12-2016

The Singapore PMI increased to 49.8 in August of 2016 from 49.3 in the previous month. Although the reading pointed to the fourteenth consecutive month of contraction, new orders, new export orders, production and employment declined at a slower pace. Also, electronics sector expanded for the first time in 14 months (50.2 from 49.7 in July). Manufacturing PMI in Singapore averaged 50.13 from 2012 until 2015, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012. Manufacturing PMI in Singapore is reported by the Singapore Institute of Purchasing & Materials Management, SIPMM.

 

Singapore REITs in general is slightly over value now. Distribution yield for some Singapore REITs with bigger market capitalization is not very attractive. However, there are still opportunities in Singapore REITs with smaller market capitalization. The high distribution yield of these REITs are caused by huge drop in share price due to weak fundamental instead of strong DPU growth.  Technically Singapore REITs sector is in bullish territory and on uptrend but facing immediate declining trend line resistance. US Fed is now starting to talk about the interest rate hike which may put pressure on Singapore REITs moving forward.  Nevertheless, not all the REIT are affected by the rate hike due to the different debt profile. This may present an opportunity to pick up some fundamentally strong Singapore REITs if there is a knee jerk sell off in the Singapore REITs sector. Come and learn how to spot these gems and identify how to time an good entry in the coming Singapore REIT Investing course.

 

Original post from http://mystocksinvesting.com

 

 

Weekly Inter Market Analysis Sept 11-2016

Learnt about JW5IMA in PMP. I create a KL8WIMA (Kenny Loh 8 Weekly Inter Market Analysis) for my own market watch. The objective is to monitor the correlation of different asset class / sectors movement every week. Feel free to comment if there are better alternatives.

Original post from http://mystocksinvesting.com

A long awaited sell off finally came on Friday (Sept 9-2016) after 2 months of low volatility and trading in a tight range for US market. Has the correction finally came? Will the sell off continue next week?

us-indices-sept9-2016 heatmap-sept-9-2016

SPY (SPDR S&P500 ETF)

SPY gapped down and broken the support on last trading session. Next week will be crucial to see whether SPY can break the support to continue the sell off or rebound from here to continue the uptrend.

spy-sept11-2016

VIX

VIX spiked about 40% at last trading session. If VIX continues to move higher next week, tighten your seat belt!

vix-sept11-2016

SUDX (S&P US Dollar Futures Index)

SUDX is currently trading within a Symmetrical Triangle and likely to be trading in a tight range until a breakout. Wait for Yellen’s speech on the interest rate hike confirmation.

sudx-sept11-2016

FXE (Currency Shares Euro ETF)

Down trend has stopped for FXE. FXE is curently trading sideway and range bound. Wait for Yellen’s speech on the interest rate hike confirmation before we can see the next big move.

fxe-sept11-2016

XLE (SPDR Energy Sector ETF)

XLE came out from the down trend channel and currently looks like reversing to the uptrend. Crude Oil has bottomed up?

xle-sept11-2016

USO (United States Oil Fund)

USO is currently trading in a Symmetrical Triangle. Keep an eye on the next move when USO is trading closer to the apex of the triangle.

uso-sept11-2016

TLT (iShares 20+ Years Treasury Bond ETF)

SPY sold off, TLT sold off together? US Equity and Bond Market are moving in the same direction at the moment. This is not normal. Will the “Sell equity and move to bond in the bear market” strategy work moving forward? Base on the current equity and bond “synchronized movement”,  we may need to watch this space very closely and rethink our portfolio re-balancing strategy.

tlt-sept11-2016

GLD (SPDR Gold Shares)

Gold is currently trading in a consolidation (Rectangle pattern) and still on uptrend.  Expect GLD to move to 141.19 (161.8% Fibonacci Retracement Level) as long as the uptrend support holds. Can GLD be the safe harbor if Equity & Bond market sell off?

gld-sept11-2016

Next Week Economic Calendar

economic-calandar-sept11-sept17-2016

SGX APAC REIT Index ETF is Coming for REITs Investors in Singapore

Good news to Singapore REIT supporters! This Singapore SGX APAC REIT ETF is a suggestible ETF in your investment portfolio for your retirement planning. A few advantages of investing in Singapore SGX APAC (ex-Japan) REIT ETF:

  1. Low cost as you can buy or sell using your local brokers.
  2. You can DIY (Do It Yourself)
  3. If you find too troublesome to do all the analysis of individual REIT.
  4. You can invest regularly using Dollar Cost Averaging method.
  5. Distribution Yield is about 4.5%. Not high but good enough to beat inflation and higher than bank interest rate. Check out other Singapore REITs here for higher distribution yield payout.
  6. Liquid. ie. you can buy and sell any time.
  7. Alternative ways to invest in Singapore and oversea properties if you are the property investor.
  8. Great Diversification into different type of properties, sectors, tenants, Forex, countries, etc.

Disclaimer: This is personal opinion. It is not a buy or sell recommendation.

You can read the announcement of the SGX news “SGX launches SGX APAC ex Japan Dividend Leaders REIT Index” here.

 

Singapore Exchange (SGX) today announced the launch of the SGX APAC ex Japan Dividend Leaders REIT Index, composed of 30 real estate investment trusts (REITs) across the Asia Pacific ex Japan region. It will be the first SGX index to be used as a benchmark index for a new exchange-traded fund (ETF), which will be issued by Phillip Capital Management (S) Limited (Phillip Capital Management), the asset management arm of Phillip Capital.

The index is the first of its kind, comprised entirely of REITs in the Asia Pacific region that are dividend weighted, whilst also becoming accessible through an ETF. The dividend-weighted index measures the performance of REITs that pay the largest dividends within the Asia Pacific ex Japan region, providing investors with the opportunity to participate in a portfolio offering significant and sustainable yields. The index’s total return over the twelve months to 29 July 2016 was 19.97%, demonstrating a yield over the same period of 4.53%.

Phillip Capital Management’s ETF, which will be listed on SGX, highlights the growing investor interest in ETFs in the region and attests to SGX’s status as the regional hub for REITs. The region’s ETF market is fast developing and poised for strong growth, with ETF assets in Asia expected to reach US$560 billion by 20211 .

Loh Boon Chye, CEO of SGX, said, “I am delighted with the launch of our first Pan-Asian index and that it will be used as a benchmark for an ETF. As SGX’s first truly regional index, it broadens our offering beyond the Singapore equity market, demonstrating our continued push to provide investors access to diverse opportunities. The demand for index-linked investment opportunities is increasing rapidly across Asia, and SGX is committed to supporting this growth through our comprehensive index services.”

Jeffrey Lee, MD and Co-CIO of Phillip Capital Management, said, “We are very excited to be working with SGX on producing a unique index where the underlying REIT constituents are weighted by total dividends paid in the preceding 12 months. The prospective ETF will offer investors transparent and low cost access to a diverse basket of quality REITs, many of which we have been investing in over the past decade through our actively-managed REIT funds. In view of the growing demand we see from our investors for sustainable income and the rise of passive investing, this is a highly opportune time to launch the first Asia Pacific REIT ETF comprising the region’s largest dividend-paying REITs.”

The SGX APAC ex Japan Dividend Leaders REIT Index captures over 70% of the region’s REIT universe by total capitalisation, taking into consideration size, free-float and liquidity. All constituent weights are capped at 10% to ensure greater portfolio diversification. The index was designed and built using SGX’s in-house index engineering expertise, in consultation with Phillip Capital Management.