Singapore Budget 2015: Singapore Reits to enjoy income tax and GST concessions for 5 more years

Post author:Marubozu
Post published:February 25, 2015

By Lee Meixian

For more stories, analysis and infographics on Singapore Budget 2015, head to btd.sg/budget_15

Income tax and GST concessions for Singapore real estate investment trusts (S-Reits) will be extended for five more years to attract listings here, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Monday.

The GST concessions will also be enhanced to facilitate fund-raising by special purpose vehicles set up by Reits, he said.

However, the stamp duty concessions, which are mainly for the purchase of local properties, will be allowed to lapse after March 31, 2015.

“The concessions were intended to enable the industry to acquire a critical mass of local assets as a base from which the Reits can expand abroad. This has been achieved.

“Overall, Singapore’s tax regime for Reits continues to remain very competitive relative to those elsewhere in Asia. It will help anchor the sustainable growth of the S-Reit industry,” he said.

Currently, S-Reits enjoy tax exemption on foreign income from qualifying overseas properties, and can recover the GST incurred on its and its special purpose vehicles’ business expenses. They also enjoy stamp duty remission on Singapore properties purchased.

Singapore REIT Fundamental Analysis Comparison Table – 1 Feb 2015

Post author:Marubozu
Post published:February 1, 2015

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index increases from 781.16 to 796.8 compare to last post on Singapore REIT Fundamental Comparison Table on Jan 4, 2015. The index is currently going through short term retracement after breaking out from the 52 weeks high resistance. Long term trend for Singapore REIT is bullish base on the chart pattern of this ST REIT index as the 200D SMA is trending up. The index is currently on up trend as long as 780 Resistance Turned Support holds.

FTSE ST REIT Index Feb1-2015

Price/NAV slight change from 1.04 to 1.05 (slightly over value now)
Distribution Yield decreases slightly from 6.57% to 6.52%.
Gearing Ratio increases slightly from 33.74% to 33.78%.

There was a spike in SIBOR recently. Not a good sign for REIT which have high gearing ratio because there may be increase in borrowing cost depends on the debt expiry profile.

If you want to learn how to pick the right REIT and invest to generate passive income safely, check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.

Grab an insight of the REIT class here 3 Tips To Increasing Returns On REITs Investments

Singapore REIT Fundamental Analysis Comparison Table – 4 Jan 2015

Post author:Marubozu
Post published:January 4, 2015

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 774.40 to 781.16 compare to last post on Singapore REIT Fundamental Comparison Table on Dec 14, 2014. The index is currently testing the 52 weeks high resistance. Long term trend for Singapore REIT is bullish base on the chart pattern of this ST REIT index as the 200D SMA is trending up. The index is currently range bound in consolidation mode and moving sideway until there is a breakout.

Added Keppel DC REIT and updated Price/NAV high and low for some REITs.
Price/NAV no change at 1.04 (slightly over value now)
Distribution Yield decreases slightly from 6.59% to 6.57% (take note that this is lagging number, past DPU does not represent future DPU). Note: I did not color code the yield number because yield is relative to individual risk appetite. High Yield does NOT mean it is a good REIT. Low Yield does NOT mean it is a bad REIT. We have to analyse the Fundamental and do Risk Assessment of the REIT.
Gearing Ratio decreases slightly from 33.90% to 33.74%..

Keep a close eye on Singapore Interest Rate and SIBOR which is increasing quietly.

There are 37 Real Estate Investment Trust in Singapore as shown in the above table. Most people just purely choose the REIT with HIGH DIVIDEND and invest blindly without knowing what are the RISKS. If you want to learn how to pick the right REIT and invest to generate passive income safely, check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.

Grab an insight of the REIT class here 3 Tips To Increasing Returns On REITs Investments