Singapore REIT Monthly Update (July 3rd 2022)

  • Post author:

Technical Analysis of FTSE ST REIT Index (FSTAS351020)


FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 820.69 to 807.47 (-1.61%) compared to last month’s update. The REIT Index is currently in a downward Parallel Channel, having broke the 800 support (false broke out last time) between June 14th and June 21st, but rebounded from the 800 support (which tested for 3 occasions).

  • Support Lines: Blue
  • Resistance Lines: Red
  • Short-term direction: Down
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support at 800, followed by 775
  • Immediate Resistance at 890

 

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on June 5th, 2022.

 

Fundamental Analysis of 39 Singapore REITs


The following is the compilation of 39 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

  • The Financial Ratios are based on past data and there are lagging indicators.
  • This REIT table takes into account the dividend cuts due to the COVID-19 outbreak. Yield is calculated trailing twelve months (ttm), therefore REITs with delayed payouts might have lower displayed yields, thus yield displayed might be lower for more affected REITs.
  • All REITs are updated with the latest Q1 2022 business updates/earnings.
  • Digital Core REIT’s yield is extracted from the IPO Prospectus, calculated based on *Estimated DPU (calculated from the Prospectus) / Current Price.
  • ESR REIT and ARA LOGOS Logistics Trust has merged to form ESR-LOGOS REIT. ALOG REIT is no longer shown, shown values are for ESR REIT.

Data from StocksCafe REIT Screener. https://stocks.cafe/kenny/advanced

 

 

What does each Column mean?

  • FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.
    • Most REITs are green since it is compared to FY20/21 as the base (during the pandemic)
  • Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of July 1st, 2022
    • Digital Core REIT: Yield calculated from IPO Prospectus.
  • Gearing (%): Leverage Ratio.
  • Price/NAV: Price to Book Value. Formula: Current Price (as of July 1st, 2022) over Net Asset Value per Unit.
  • Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs trading in USD is referenced to US Gov Bond Yield, everything else is referenced to SG Gov Bond Yield.
  •  

Price/NAV Ratios Overview

  • Price/NAV decreased to 0.92.
    • Decreased from 0.95 from June 2022.
    • Singapore Overall REIT sector is undervalued now.
    • Take note that NAV is adjusted upwards for some REITs due to pandemic recovery.
  • Most overvalued REITs (based on Price/NAV)
    • Parkway Life REIT (Price/NAV = 2.04)
    • Keppel DC REIT (Price/NAV = 1.49)
    • Mapletree Industrial Trust (Price/NAV = 1.40)
    • Ascendas REIT (Price/NAV = 1.18)
    • Mapletree Logistics Trust (Price/NAV = 1.14)
    • Frasers Hospitality Trust (Price/NAV = 1.06)
    • No change to the Top 3 compared to the March to May updates.
  • Most undervalued REITs (based on Price/NAV)
    • EC World REIT (Price/NAV=0.45)
    • Lippo Malls Indonesia Retail Trust (Price/NAV = 0.56)
    • BHG Retail REIT (Price/NAV = 0.61)
    • ARA Hospitality Trust (Price/NAV = 0.67)
    • OUE Commercial REIT (Price/NAV = 0.68)
    • Capitaland China Trust (Price/NAV = 0.72)

Distribution Yields Overview

  • TTM Distribution Yield increased to 6.62%
    • Increased from 6.30% in June 2022.
    • 18 of 40 Singapore REITs have distribution yields of above 7%. (4 more than last month’s update)
    • Do take note that these yield numbers are based on current prices taking into account the delayed distribution/dividend cuts due to COVID-19, and economic recovery. 
  • Highest Distribution Yield REITs (ttm)
    • EC World REIT (14.56%)
    • Prime US REIT (10.20%)
    • United Hampshire REIT (9.92%)
    • First REIT (9.53%)
    • Manulife US REIT (9.35%)
    • Sasseur REIT (9.31%)
    • Reminder that these yield numbers are based on current prices taking into account delayed distribution/dividend cuts due to COVID-19.
    • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
    • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
  • Yield Spread increased to 3.71%.
    • Increased from 3.47% in June 2022.

Gearing Ratios Overview

  • Gearing Ratio remained at 36.83%. 
    • Remained at 36.83% in June 2022.
    • Gearing Ratios are updated quarterly. Therefore none of the following REITs have updated gearing ratio compared to last month (all are based on Q1 2022 updates)
  • Highest Gearing Ratio REITs
    • ARA Hospitality Trust (44.9%)
    • Suntec REIT (43.3%)
    • Lippo Malls Indonesia Retail Trust (42.9%)
    • Manulife US REIT (42.8%)
    • Elite Commercial REIT (42.8%)
    • Frasers Hospitality Trust (42.3%)
    • No change to the Top 3 compared to the April, May and June updates.

Market Capitalisation Overview

  • Total Singapore REIT Market Capitalisation decreased by 3.85% to S$104.95 Billion.
    • Decreased from S$109.16 Billion in June 2022.
  • Biggest Market Capitalisation REITs:
    • Capitaland Integrated Commercial Trust ($14.21B)
    • Ascendas REIT ($11.84B)
    • Mapletree Logistics Trust ($7.86B)
    • Mapletree Industrial Trust ($6.96B)
    • Mapletree Commercial Trust ($6.08B)
    • Frasers Logistics & Commercial Trust ($4.99B)
    • No change in Top 5 rankings since August 2021.
  • Smallest Market Capitalisation REITs:
    • BHG Retail REIT ($287M)
    • EC World REIT ($340M)
    • ARA US Hospitality Trust ($371M)
    • Lippo Malls Indonesia Retail Trust ($393M)
    • Daiwa House Logistics Trust ($436M)
    • First REIT ($444M)
    • EC World REIT was 5th smallest market cap last month, now it is 2nd.

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, here’s a subsidised 2-day course with all you need to know about REITs and how to start investing in them.

 

Top 20 Worst Performers of the Month in June 2022


 (Source: https://stocks.cafe/kenny/advanced)

 

SG 10 Year & US 10 Year Government Bond Yield

  • SG 10 Year: 2.92% (increased from 2.82%)
  • US 10 Year: 2.81% (decreased from 2.92%)

 

Major REIT News in June 2022


SPH Reit offer closes; Cuscaden to own 61.7% 

THE BUSINESS TIMES: THE chain offer for SPH Reit : SK6U +0.53% has closed with valid acceptances in respect of 402.9 million units, representing about 14.36 per cent of total issued units, according to a bourse filing on Thursday (Jun 30) night.

This will bring the Cuscaden Peak and its concert parties’ stake in the real estate investment trust (Reit) to 61.68 per cent, or about 1.73 billion units. 

The offer had previously turned unconditional on Jun 1 after it received valid acceptances representing about 4.64 per cent of total issued SPH Reit units. Read More

 

EC World REIT’s Refinancing Woes

THE EDGE: What’s wrong with EC World REIT? Probably a dose of déjà vu, that is master leases, and capital management. The net asset value of EC World REIT as at end-2021 stood at 93 cents. Its unit price closed at 48 cents on June 30, 2022. That values EC World REIT at 0.51x NAV. The market capitalisation as at June 29 was $388 million based on units in issue of 809.49 million as stated in the 2021 annual report, The secured debt outstanding stood at $725 million as at Dec 31, 2021.

On June 29, the Singapore Exchange, questioned the REIT’s refinancing efforts following the latter’s announcements on June 1 and June 13. Why were the loan extensions for less than 12 months? Why are the lenders not financing beyond April 2023? Are there difficulties in obtaining onshore facilities? Read More

 

THE BUSINESS TIMES: Brokers’ take: RHB lowers EC World Reit target price to S$0.55 on ‘onerous loan refinancing terms’  AFTER EC World Reit : BWCU -12.5%’s recent “disappointing” refinancing outcome, RHB has lowered its target price for the real estate investment trust (Reit) to S$0.55 from S$0.65, citing “limited catalysts” in a Monday (Jun 27) report.

This represents a further drop from RHB’s report in May, where it had previously lowered the target price for EC World Reit to S$0.65 from S$0.76. 

EC World Reit has currently secured onshore borrowing facilities of S$300 million and US$87 million, which were due in June. While it was granted a temporary loan extension to Apr 30 next year, this is conditional to a 25 per cent (approximately S$100 million) repayment of loans by the end of 2022. Read More

 

Digital Core REIT’s big short: It is currently down 35% YTD

THE EDGE: Jim Chanos’ latest big short: data centre REITs According to the Financial Times, short seller Jim Chanos believes that data centres in REITs and that are not owned by Alphabet, Microsoft and Amazon are going to be behind the curve so to speak. The web service arms of the trio, Google Cloud, Amazon Web Services and Microsoft Azure have their cloud services housed in their own leading edge data centres. For instance Google has a state-of-the-art data centre in Jurong.

Chanos is quoted to have said the cloud is growing but “the cloud is their (the REITs’) enemy, not their business. Value is accruing to the cloud companies, not the bricks-and-mortar legacy data centres.”

In fact, Alphabet, Amazon and Microsoft are likely to be the REITs’ biggest competitors, not their biggest customers. When your biggest competitors are the three most vicious competitors in the world you have a problem, Chanos is reported to have said. Read More


Summary


Fundamentally, the whole Singapore REITs landscape is undervalued based on the average Price/NAV value of the S-REITs. Below is the market cap heat map for the past 1 month. Generally, S-REITs in the past month have decreased in market cap. 

2 REITs stand out with a large portion of market cap wiped out in the past month: EC World REIT (-33.33%) and Digital Core REIT (-22.28%). Digital Core REIT’s performance can be attributed to short-selling, while EC World REIT’s performance can be attributed to its recent refinancing woes. All 4 Mapletree REITs are strong performers this month.

 

 

(Source: https://stocks.cafe/kenny/overview)

Yield spread (in reference to the 10 year Singapore government bond of 2.92% as of 1st July 2022) widened from 3.47% to 3.71%. The S-REIT Average Yield increased from 6.30% to 6.62%. The yield of the REITs sector needs to increase to maintain the average yield spread of 4%. Amid all the negative news, S-REITs have been resilient and have one of the highest risk-adjusted dividend yields compared to other stock exchanges.

 

 

The risk premium has dropped, but still remains attractive (compared to other asset classes) to accumulate Singapore REITs in stages to lock in the current price (current average distribution yield is 6.62%!) and to benefit from long-term yield after the recovery, especially since the S-REIT Market is slightly undervalued now. Moving forward, it is expected that DPU will continue to increase due to the recovery of the global economy, as seen in the previous few earning updates, especially for Hospitality and Retail sectors. NAV is expected to be adjusted upward due to revaluation of the portfolio.

 

Upcoming REIT Course


I will be conducting my next REIT course on the 16th and 23rd July 2022. It is a 2-day course where you will learn everything you need to learn about REITs for investing. I only conduct this course every quarter, so do take a look below. For a limited time only, the course fee is subsidized to cost $200 (above 40y/o) or $600 (below 40y/o)*. Take advantage of the IBF subsidy while it is still available.

You can register by clicking the link here: Building a Diversified REIT Portfolio – SGX Academy

Registration will close on 11th July, 2022.

 

Note: This above analysis is for my own personal research and it is NOT a buy or sell recommendation. Investors who would like to leverage my extensive research and years of Singapore REIT investing experience can approach me separately for a REIT Portfolio Consultation.

Kenny Loh is an Associate Wealth Advisory Director  and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingSingapore REIT Monthly Update (July 3rd 2022)

Money & Me: How will Rising Inflation Rates impact REITs?

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10 June 2022

Money and Me: Are Hospitality REITs the clear way to play the reopening trade in Singapore?

Michelle Martin finds out if there is reason for cautious optimism in the S-REIT space given last month’s data on the sector. We survey the possible winners with impressive Price/NAV ratios and discuss if Industrial REITs could be a contrarian bet in this conversation with Kenny Loh, REITs Specialist and Independent Financial Advisor.

Timestamps

0:18 Intro

1:40 How is the Retail Sector doing?

2:22 Which REITs are looking like clear winners?

3:31 How will Rising Inflation Rates Impact REITs? How will different sectors be impacted differently?

5:45 Do you see any particularly attractive sectors?

7:12 Thoughts on Mapletree Investment Trust’s recent divestment of a Data Centre

7:57 Near-term challenges for S-REITs

9:21 Listener Question: Investing in REIT ETFs vs in REITs (Pros and Cons)

12:22 Outro

Listen to his previous market outlook interviews here:

2022

2021

2020

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingMoney & Me: How will Rising Inflation Rates impact REITs?

Singapore REIT Monthly Update (June 5th 2022)

  • Post author:

Technical Analysis of FTSE ST REIT Index (FSTAS351020)


FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 853.56 to 820.69 (-3.85%) compared to last month’s update. FTSE REIT Index is currently trading within the 800-822 range.

  • Support Lines: Blue
  • Resistance Lines: Red
  • Short-term direction: Sideways
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support at 800
  • Immediate Resistance at 822, followed by 890

 

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on May 1st, 2022.

 

Fundamental Analysis of 39 Singapore REITs


The following is the compilation of 39 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

  • The Financial Ratios are based on past data and there are lagging indicators.
  • This REIT table takes into account the dividend cuts due to the COVID-19 outbreak. Yield is calculated trailing twelve months (ttm), therefore REITs with delayed payouts might have lower displayed yields, thus yield displayed might be lower for more affected REITs.
  • All REITs are updated with the latest Q1 2022 business updates/earnings.
  • Digital Core REIT’s yield is extracted from the IPO Prospectus, calculated based on *Estimated DPU (calculated from the Prospectus) / Current Price.
  • ESR REIT and ARA LOGOS Logistics Trust has merged to form ESR-LOGOS REIT. ALOG REIT is no longer shown, shown values are for ESR REIT.

Data from StocksCafe REIT Screener. https://stocks.cafe/kenny/advanced

 

 

What does each Column mean?

  • FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.
    • Most REITs are green since it is compared to FY20/21 as the base (during the pandemic)
  • Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of June 3rd, 2022
    • Digital Core REIT: Yield calculated from IPO Prospectus.
  • Gearing (%): Leverage Ratio.
  • Price/NAV: Price to Book Value. Formula: Current Price (as of June 3rd, 2022) over Net Asset Value per Unit.
  • Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs trading in USD is referenced to US Gov Bond Yield, everything else is referenced to SG Gov Bond Yield.
  •  

Price/NAV Ratios Overview

  • Price/NAV decreased to 0.95.
    • Decreased from 0.99 from May 2022.
    • Singapore Overall REIT sector is undervalued now.
    • Take note that NAV is adjusted upwards for some REITs due to pandemic recovery.
  • Most overvalued REITs (based on Price/NAV)
    • Parkway Life REIT (Price/NAV = 2.08)
    • Keppel DC REIT (Price/NAV = 1.54)
    • Mapletree Industrial Trust (Price/NAV = 1.34)
    • Ascendas REIT (Price/NAV = 1.17)
    • Mapletree Logistics Trust (Price/NAV = 1.12)
    • Elite Commercial REIT (Price/NAV = 1.11)
    • No change to the Top 3 compared to the March to May updates.
  • Most undervalued REITs (based on Price/NAV)
    • BHG Retail REIT (Price/NAV = 0.58)
    • Lippo Malls Indonesia Retail Trust (Price/NAV = 0.58)
    • EC World REIT (Price/NAV = 0.67)
    • OUE Commercial REIT (Price/NAV = 0.69)
    • ARA Hospitality Trust (Price/NAV = 0.70)
    • Starhill Global REIT (Price/NAV = 0.74)
    • No change to the Top 3 compared to the May updates.

Distribution Yields Overview

  • TTM Distribution Yield increased to 6.30%
    • Increased from 6.00% in May 2022.
    • 14 of 40 Singapore REITs have distribution yields of above 7%. (Same as last month’s update)
    • Do take note that these yield numbers are based on current prices taking into account the delayed distribution/dividend cuts due to COVID-19, and economic recovery. 
  • Highest Distribution Yield REITs (ttm)
    • United Hampshire REIT (10.08%)
    • EC World REIT (9.86%)
    • Prime US REIT (9.48%)
    • First REIT (9.19%)
    • Keppel Pacific Oak REIT (9.06%)
    • Manulife US REIT (8.81%)
    • Reminder that these yield numbers are based on current prices taking into account delayed distribution/dividend cuts due to COVID-19.
    • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
    • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
  • Yield Spread increased to 3.47%.
    • Increased from 3.44% in May 2022.

Gearing Ratios Overview

  • Gearing Ratio decreased to 36.83%. 
    • Decreased from 37.05% in May 2022.
    • Gearing Ratios are updated quarterly. Therefore all REITs have Q1 2022 updates which have updated gearing ratios.
    • In general, Singapore REITs sector gearing ratio is healthy but increased due to the reduction of the valuation of portfolios and an increase in borrowing due to Covid-19.
  • Highest Gearing Ratio REITs
    • ARA Hospitality Trust (44.9%)
    • Suntec REIT (43.3%)
    • Lippo Malls Indonesia Retail Trust (42.9%)
    • Manulife US REIT (42.8%)
    • Elite Commercial REIT (42.8%)
    • Frasers Hospitality Trust (42.3%)
    • No change to the Top 3 compared to the April and May update.

Market Capitalisation Overview

  • Total Singapore REIT Market Capitalisation decreased by 2.75% to S$109.16 Billion.
    • Decreased from S$112.25 Billion in May 2022.
  • Biggest Market Capitalisation REITs:
    • Capitaland Integrated Commercial Trust ($14.65B)
    • Ascendas REIT ($11.71B)
    • Mapletree Logistics Trust ($7.95B)
    • Mapletree Industrial Trust ($6.67B)
    • Mapletree Commercial Trust ($5.96B)
    • Frasers Logistics & Commercial Trust ($4.94B)
    • No change in Top 5 rankings since August 2021.
  • Smallest Market Capitalisation REITs:
    • BHG Retail REIT ($272M)
    • ARA US Hospitality Trust ($383M)
    • Lippo Malls Indonesia Retail Trust ($408M)
    • United Hampshire REIT ($466M)
    • Sabana REIT ($492M)
    • EC World REIT ($502M)
    • No change in Top 4 rankings compared to March to May updates.

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, here’s a subsidised 2-day course with all you need to know about REITs and how to start investing in them.

 

Top 20 Worst Performers of the Month in May 2022


 (Source: https://stocks.cafe/kenny/advanced)

 

SG 10 Year & US 10 Year Government Bond Yield

  • SG 10 Year: 2.82% (increased from 2.52%)
  • US 10 Year: 2.92% (increased from 2.87%)

 

Major REIT News in May 2022


S-REITs Earnings Season for the Period Ending 31 Mar 2022 has wrapped up

A total of 39 S-REITs have released their earnings/business updates for the Period Ending 31 Mar 2022 (28 Feb 2022 for SPH Reit).

 

MCT, MNACT shareholders approved merger

THE BUSINESS TIMES: Unit holders of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) have voted in favour of a merger to create one of Asia’s 10 largest real estate investment trusts (Reits).

The merged entity, to be named Mapletree Pan Asia Commercial Trust (MPACT), will have a theoretical market capitalisation of approximately $10.5 billion – ranking it among the top three Reits listed in Singapore, behind CapitaLand Integrated Commercial Trust and Ascendas Reit.

At separate extraordinary general meetings (EGMs) on Monday (May 23), all resolutions to pave the way for the merger were duly passed. At MCT’s EGM in the morning, some 91.7 per cent of MCT unit. Read More

 

ESR-LOGOS REIT starts trading

ESR-Logos Reit : J91U +1.22% ended its first day of trading on Thursday (May 5) on the Singapore Exchange at S$0.395, unchanged from its opening price.

The units were trading 1.3 per cent or S$0.005 higher than the last closing price of the counter, when it was previously known as ESR-Reit, with 476,000 units changing hands at the open. ESR-Reit had closed flat on Wednesday at S$0.39, on an ex-distribution basis.

On Thursday, the counter hit an intra-day high of S$0.40 at 9.09am, before easing to trade at an intra-day low of S$0.39 at 2.39pm. It ended the day at S$0.395, down S$0.005 or 1.3 per cent, with some 8.7 million units changing hands.

E-Log Reit was formed after a merger between ESR-Reit and Ara Logos Logistics Trust (ALog Trust), following the merger between the 2 Reits’ sponsors – ESR Cayman and ARA Asset Management. Read More


Summary


Fundamentally, the whole Singapore REITs landscape is undervalued based on the average Price/NAV value of the S-REITs. Below is the market cap heat map for the past 1 month. Generally, S-REITs in the past month have decreased in market cap. 

Only 6 REITs increased in Market Cap the past month. They are ESR-LOGOS REIT (6.41%), Lendlease REIT (5.11%), ParkwayLife REIT (3.77%), Sabana REIT (1.11%), Keppel DC REIT (0.99%) and Mapletree NAC Trust (0.83%). Both ESR-LOGOS REIT and Mapletree NAC Trust’s growth can be attributed to their respective mergers, the enlarged ESR-LOGOS REIT started trading on 5th May, and for MNACT, the merger with MCT has been approved by shareholders.

 

 

(Source: https://stocks.cafe/kenny/overview)

Yield spread (in reference to the 10 year Singapore government bond of 2.82% as of 3rd June 2022) loosened slightly from 3.44% to 3.47%. The S-REIT Average Yield increased from 6.00% to 6.30%, but the increase in the Government Bond Yields offsets this Average S-REIT Yield increase. The yield of the REITs sector needs to increase to maintain the average yield spread of 4%. Amid all the negative news, S-REITs have been resilient and have one of the highest risk-adjusted dividend yields compared to other stock exchanges.

 

 

The risk premium has dropped, but still remains attractive (compared to other asset classes) to accumulate Singapore REITs in stages to lock in the current price and to benefit from long-term yield after the recovery, especially since the S-REIT Market is still at a fair value. Moving forward, it is expected that DPU will continue to increase due to the recovery of the global economy, as seen in the previous few earning updates, especially for Hospitality REITs. NAV is expected to be adjusted upward due to revaluation of the portfolio.

 

Upcoming Events


 

You may follow my coming REITs webinar and market updates:

 

 
 

 

MoneyFM 89.3 Interview

 

 

 

June 10th 2022, 10am

 

Listen as I speak with Michelle Martin and discuss about the REIT space in Singapore, and the REIT Market Outlook. Simply tune in at 10am.

*For New Investors / those looking to invest in REITs*

 

Free Webinar: How to build your REIT portfolio into your retirement plan

 

June 13th 2022, 7pm

Participants will have insight on the characteristics of REITs as an Asset Class, and able to explore the benefits and suitability of REITs in building their retirement portfolio.

Participants will appreciate the important factors to consider when building their retirement portfolio to minimise their investment risks.

Participants will be guided to construct a diversified portfolio to attain their retirement objective.

*For Current Investors of REITs / those looking to learn more*

Physical Seminar: S-REIT Market Update & 4 Pains of REITs investing @ Phillip Securities

June 25th 2022, 10am

Singapore REITs enjoyed a good first half of 2022. Can it continue?

US Fed will continue tightening monetary policy and is likely to raise interest rates by 0.5 percentage points in at least two more FOMC meetings. Will this be good or bad for REITs?

What should you do if you’re holding REITs or looking to buy now?

What are the ‘4 pains’ every REITs investor suffers from and how can you overcome them?

 

Note: This above analysis is for my own personal research and it is NOT a buy or sell recommendation. Investors who would like to leverage my extensive research and years of Singapore REIT investing experience can approach me separately for a REIT Portfolio Consultation.

Kenny Loh is an Associate Wealth Advisory Director  and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingSingapore REIT Monthly Update (June 5th 2022)