Singapore REIT Fundamental Analysis Comparison Table – 3 Sept 2017

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FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 802.25 to 810.27 (+1.00%) ( compare to last post on Singapore REIT Fundamental Comparison Table on Aug 7, 2017.  The index rebounded from the uptrend channel support and 50D SMA, and continue its bullish uptrend. See key level of support and resistances of FTSE REIT Index here.

 

Fundamental Analysis

  • Price/NAV stays at 1.05 (Singapore Overall REIT sector is slightly over value now).
  • Distribution Yield increases from 6.48% to 6.51% (take note that this is lagging number). About one third number of Singapore REITs (12 out of 37) have Distribution Yield > 7%. This is a significant drop in numbers compare to a few months ago. This indicates there are lesser Singapore REITs with attractive yield to pick now.
  • Gearing Ratio reduced from 34.8% to 34.7%.  20 out of 37 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy.
  • Most overvalue REIT is Parkway Life (Price/NAV = 1.60), followed by Keppel DC REIT (Price/NAV = 1.38), First REIT (Price/NAV = 1.32), Mapletree Industrial Trust (Price/NAV = 1.33) and Ascendas REIT (Price/NAV = 1.30)
  • Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.69),  followed by Far East HTrust (Price/NAV = 0.74) and Keppel REIT (Price/NAV = 0.83) and OUE Com REIT (Price/NAV = 0.83).
  • Highest Distribution Yield (TTM) is Cache Logistic Trust (8.34%), followed by SoilBuild BizREIT (8.12%), Lippo Mall Indonesia Retail Trust (8.09%) and iREIT Global REIT (7.9%).
  • Highest Gearing Ratio is Cache Logistic Trust (43.4%), iREIT Global (41.3%).

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.

 

Economy Analysis – Singapore

 

  • 1 month  at 0.99900%
  • 3 month at 1.11175%
  • 6 month at 1.24800%
  • 12 month at 1.37658%

 

 

The Singapore Manufacturing PMI rose to 51 in July 2017 from 50.9 in the previous month. The reading pointed to the strongest pace of expansion in the manufacturing sector since April, boosted by growth in new orders, new exports and output. Also, the PMI for the electronics sector increased to 52.2 from 52.1 in June. Manufacturing PMI in Singapore averaged 50.14 from 2012 until 2017, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012.

 

The Gross Domestic Product (GDP) in Singapore expanded 2.20 percent in the second quarter of 2017 over the previous quarter. GDP Growth Rate in Singapore averaged 6.78 percent from 1975 until 2017, reaching an all time high of 37.20 percent in the first quarter of 2010 and a record low of -13.50 percent in the fourth quarter of 2008.

 

Summary

Fundamentally the whole Singapore REITs is slightly over value. Office and Hospitality sectors are still undervalue but have not seen any clear turnaround signs yet. Technically Singapore REITs is still on bullish up trend but facing the resistance of 820.

There are not many REITs left to pick at the present moment. If you have missed the boat to invest in REITs but have fear of selecting the wrong REITs. you may want to check out this Investing in Singapore REIT course here.

If you do not have time to do all the analysis and monitor the stock market, there is a solution for you … REITs Portfolio Advisory. I will help you to build a Diversified REITs portfolio for you. I will do all the work by selecting fundamental strong REIT, time the entry, monitor the quarterly earning performance, sell the weak REITs, etc.  https://mystocksinvesting.com/course/private-portfolio-review/

See all other relevant  Singapore REITs blog posts here.

Check out coming seminars at https://mystocksinvesting.com/events

 

 

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4 Pitfalls to Avoid When Writing A Will

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Personal Financial Planning plays an important part of our life. We plan many things in our life from Wealth Creation, Wealth Maintenance, Wealth Accumulation to Wealth Distribution. If we plan it right, our life will be less miserable as we spend within our means, have sufficient retirement and education funds for our children and have sufficient protection against our wealth. However, most people overlook Wealth Distribution and also give excuses that “why bother since they are no longer around to enjoy the wealth?”.

My argument to those people who do not pay attention to Wealth Distribution planning is “we  have spent our whole life taking care of our spouse, our children, our elderly parents or even our favorite charities, we have the responsibilities to make sure they are being taken care off financially when we passed on.” We should not pass our liabilities to our family and we have to prevent our family enter into legal lawsuit over our own estates.

What Happen to Our Wealth After Death?

You can start planning your Wealth Distribution by writing a Will. The following are the 4 Pitfalls to avoid when writing a Will in Singapore.

 

#1 Valid Execution

There are many Will writing templates on websites and anyone can take up a pen to fill in the blank to write a will on their own to save cost. However, it is important to make sure the Will is recognised by the Singapore court as a valid Will,  the wishes can be executed and not subject to contest. A poorly written and invalid Will equal to NO Will.

 

#2 Marriage

Accordingly to the legal system in Singapore, a Will is revoked if the testator (the person who writes the Will for wealth distribution) gets married or remarried. However, one’s Will will not be revoked if the person divorces. This means that one’s ex-spouse may still be entitled to the half’estate.

 

#3 Properties with Joint Name

Not all the properties with joint names can be distributed in a Will due to Right of Survivorship. Joint properties, such as joint bank account or joint house ownership, are regarded as assets outsides of a person’s estate.

It is important to know whether one’s property is held under Joint Tenancy or Tenancy in Common. Only percentage owned by the deceased under Tenancy in Common can be willed away to their beneficiaries. Thus, always remember to check the status of all your real estates in Singapore before writing them into the Will. In other word, real estates under Joint Tenancy in the Will do not have any meaning at all.

 

#4 CPFs money

All money in CPF such as OA, SA and Medisave account cannot be willed away. Instead, CPF nomination needs to be done to distribute your CPF savings to your loved one. Else, your CPF money will be distributed according to Intestate Succession Act.

If you have used your CPF money to purchase a house or invest in shares, the distribution will be accordingly to Will or Right of Survivorship but not CPF nomination.

 

Estate Planning and Wealth Distribution is NOT as simple as just filling up with a template or forms. There are many more pitfalls if you don’t plan it properly and your estates will be leaked to pay unnecessary taxes, legal cost and miscellaneous costs.

 

It is advisable to seek professional advice if you have concerns over your estate distribution. Comment below to share your concerns and your thoughts, or send me an email kkloh163@gmail.com for private discussion.

REGISTER to attend a free Estate Planning Seminar here https://mystocksinvesting.com/events/

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