Suntec REIT - My Stocks Investing

Is It Time to Invest in Singapore REIT to build up Passive Income?

Post author:Marubozu
Post published:October 20, 2013

Debt Ceiling settled (at least for the time being), US Government re-opens, no sign of QE tapering yet, Dow Jones Industrial Index, S&P500, NASDAQ are recording historical high and still on the solid uptrend, Europe is coming out from recession, China and US GDP are doing well again….. so many good news, IS IT A GOOD TIME TO ENTER THE MARKET?

I received many inquiries regarding whether this is the right time to buy Singapore REIT. To tell you the truth: I do NOT know as I am not the fortune teller. No one can predict the direction of the stock market but it is important to understand the global economy and how those events can affect our investment plan and portfolio.

Besides looking at those Singapore REIT Fundamental data like NAV, Distribution Yield, Gearing Ratio, etc .. (See the Comparison Table for Singapore REIT here.), there are a few risks that we need to be aware as far as investing in Singapore REITs are concerned:

The hike of interest – The day will DEFINITELY come and the only question is when? REITs (Unit price and Distribution) will be hit because REIT has to pay more interest to the bond holders and banks due to the debt especially REITs with high gearing ratio. The hike of interest will double hit the REIT’s NAV and Distribution.
REITs are sensitive to economy cycles. Any weakness in rental will affect the distribution income.
Currency risks for REITs which have the properties oversea.
REITs which high gearing may issue Rights to raise more fund to improve the working capital.

It is impossible for us to 100% understand what is happening in the world and how it will affect our REITs portfolio. However we can make better investment decision by analyse the charts using technical analysis. The charts will tell us when to invest or when to take profit / cut loss.

Base on the chart, FTSE ST Real Estate Investment Trust Index is still trading below 200D SMA (long term trend) but there is potential sign of reversal base on chart pattern. However, the upside potential is limited as long as the index stay below the 200D SMA.

Similar chart patterns shown in the following REITs, all of them are in consolidation mode but upsides are limited.

Ascendas REIT

CapitaMall

CapitaComm

2013Oct20-CapitaComm-800x600

Keppel REIT

Mapletree Comm

Mapletree Ind

Suntec REIT

I will be sharing the Singapore REIT Fundamental Analysis, Technical Analysis and how the interest rate hike will impact your REIT investment in the coming public tutorial on “How to pick Singapore REIT for Dividend Investing” . Sign up NOW as the seats are very limited due to the classroom size.

Is It A Good Time to Buy Singapore REIT Now?

Post author:Marubozu
Post published:July 22, 2013

Singapore REIT has been beaten down badly for about 15% from the recent peak. See below chart of FTSE ST-REIT Index. The index is currently trading below 200D SMA (about 800) and the 200D SMA is trading flat.

So, are the Singapore REITs cheap now? Is it the right time to pick up some REITs with high distribution yield? I am not going to tell you the answer because I am not the certified analyst and brokers and unable to make any Buy or Sell recommendation. I am going to put up all the facts and charts here for reference to give me an overview of current situation for my investing decision making.

See Singapore REIT comparison tables for Fundamental Analysis. In general, most of Singapore REITs are still over value. Let’s look at the charts of some Singapore REITs with large market capitalization.

CapitaMall (S$7.02B, S$2.03)

Ascendas REIT (S$5.52B, S$2.30)

CapitaComm (S$4.2B, S$1.465)

Suntec REIT (S$3.54B, S$1.57)

Keppel REIT (S$3.49B, S$1.30)

MapletreeCom (S$2.53B, S$1.225)

PLife REIT (S$1.47B, S$2.43)

In Summary base on the above charts, clearly the REITs are NOT trading in an uptrend. Some of them have broken 200D SMA and the charts are technically bearish. This means that the REIT prices can go even lower despite the current distribution yield looks attractive.

Check out How to Combine Fundamental & Technical Analysis to analyse Singapore REIT here.

SGX Best Mid Cap Performers in October

Post author:Marubozu
Post published:November 5, 2012

Over the month of October, the FTSE ST Mid Cap Index outperformed both the Straits Times Index and FTSE ST Small Cap Index. The FTSE ST Mid Cap Index added 0.15% in October, taking the 2012 year-to-date gain to 25.88%. On a total return basis, to account of dividend distributions over the ten months, the FTSE ST Mid Cap Index gained 32.00%.

The FTSE ST Mid Cap index is made of 50 stocks listed on Singapore Exchange (SGX) and maintains a dividend yield 4.65%.

The top five performing stocks of the Mid Cap Index in October were as follows:

OSIM International (O23) belongs to the Recreational Product Subsector and has a net market capitalisation of S$467 million. The stock gained 16.07% in October. OSIM International has gained 40.26% in the year-to-date, with dividends boosting the total return to 44.80%.
Super Group (S10) belongs to the Food Product Subsector and has a net market capitalisation of S$1.02 billion. The stock gained 11.42% in October. Super Group has gained 95.44% in the year-to-date, with dividends boosting the total return to 101.13%.
Suntec REIT (T82) has a net market capitalisation of S$3.58 billion. The REIT gained 8.08% in October. Suntec REIT has gained 46.98% in the year-to-date, with dividends boosting the total return to 57.88%. Note that Suntec REIT is the third largest constituent of the Mid Cap Index in terms of net market capitalisation.
Frasers Centrepoint Trust (J69) has a net market capitalisation of S$1.20 billion. The REIT gained 8.01% in October. Frasers Centrepoint Trust has gained 35.76% in the year-to-date, with dividends boosting the total return to 44.23%.
Hutchinson Port Holdings Trust (NS8U) has a net market capitalisation of S$4.14 billion and gained 7.11% in October. The business trust has gained 25.81% in the year-to-date, with dividends boosting the total return to 36.29%. Note that Hutchison Port Holding Trust is the second largest constituent of the Mid Cap Index in terms of net market capitalisation.

The remaining three of the five biggest Mid Cap Index stocks and their respective moves for October are Ascendas REIT (-2.07%), CapitaCommercial Trust (+5.02%) and UOL Group (-1.22%). The five Mid Cap stocks that underperformed in October and the respective declines on the month were Biosensors International Group (-11.07%), Cosco Corp (-8.81%), Indofood Agri Resources (-7.69%), Yangzijiang Shipbuilding Holdings (-7.65%) and GMG Global (-7.35%).

Of the 50 Mid Cap stocks, there are 14 Real Estate Investment Trusts (REITs) that account for 40% of the Index Weightings. The year-to-date volatility of the FTSE ST Mid Cap Index at 10.56%, is lower than its 16.58% volatility of 2011.

On a total return basis, the FTSE Asia Monthly Index Performance Report for October revealed that in the year-to-date the FTSE ST Mid Cap Index has outperformed similar indices for Malaysia, Indonesia, Hong Kong, Taiwan, South Korea, Japan, China and India.

Source: SGX My Gateway