FTSE ST Real Estate Investment Trust Index – Warning Sign or Good Time to Buy?

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FTSE ST Real Estate Investment Trust Index has formed a Head and Shoulder and broke the neckline and 200D SMA support! This is a strong warning sign that the trend of Singapore REITs will reverse to down trend. Suggest retail investors to pull out the charts of your current REIT portfolio to decide the next steps.

FTSE ST REIT Index June9-2015 (1 Year)FTSE ST REIT Index June9-2015 (3 Years)

There are a few things retail investors can do.

  1. Do nothing. – If you bought the stocks at high, be prepared to suffer capital loss for a period of time. If you bought at low, be prepared to watch your capital gain erodes.
  2. Sell – If you bought at high, you may decide to cut loss. Do take note that the stock price can go even lower when the down trend starts and you will suffer more capital loss than the dividend gain. If you bought at low, you may consider to take profit.
  3. Hedge by Short Selling – If you bought the stocks at low and enjoying good dividend payout but you don’t want to sell, you can hedge your current REIT portfolio by short selling.
  4. Prepare to buy – If you have done your homework identifying fundamental strong Singapore REIT, this is a good buying opportunity but make sure you don’t buy when the stock price is on the down trend. Wait for the stocks to bottom up and show reversal trend. Make sure you know how to identify the trend reversal using Technical Analysis.
  5. Use HOPE Analysis – This is a NO-NO. If you use HOPE in your stock investing, that means you do not know what is investing is all about. Suggest you equip yourself with sufficient financial knowledge before throwing your hard earned money into stock market.

For record purpose, it was a fierce sell off today in Singapore REIT especially with the big market capitalization.

Singapore REIT sell down June 9-2015

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Singapore REIT Fundamental Analysis Comparison Table – 1 June 2015

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FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreases from 802.45 to 795.76 compare to last post on Singapore REIT Fundamental Comparison Table on May 1, 2015. The index is continuing the uptrend and supported by the 200D SMA. However do take note that the index is trading below 20D and 50D SMA at the moment. Immediate resistance at about 800 and support at 780. Take extreme cautious that Head and Shoulder in formation with neckline at about 780. This is a trend reversal pattern.

Learn Stock Chart Pattern and Technical Analysis here.

FTSE ST REIT Index June1-2015

  • Price/NAV decreases not much change at 1.05.  (Singapore REIT in general slightly overvalue)
  • Distribution Yield increases from 6.46% to 6.48%.
  • Gearing Ratio increases from  33.71% to 34.08%
  • Most overvalue REIT is FIRST REIT (Price/NAV = 1.44), followed by Parkway Life (Price/NAV = 1.40). Both Healthcare REIT, Defensive in nature.
  • Most undervalue REIT is Fortune REIT (Price/NAV = 0.65), followed by OUE Commercial Trust (Price/NAV = 0.75).
  • Higher Distribution Yield is VIVA Industrial Trust (9.13%) followed by Sabana REIT (8.4%). Note: High Distribution Yield does not mean it is safe REIT for investment. Don’t invest purely base on the Yield % because it is wrong thing to do without knowing the reasons.
  • Highest Gearing Ratio is Croesus Retail Trust (50.4%) followed by VIVI Industrial Trust (43.4%)

Singapore-REIT-Fundamental-Analysis-and-Comparison-Table-1-Jun-2015Singapore Interest Rate June1-2015SIBOR June1-2015


  • Singapore Interest Rate reduces from 0.34% to 0.22%.
  • 1 month decreases from 0.76525% to 0.70696%.
  • 3 month decreases from 0.89095% to 0.82955%.
  • 6 month decreases from 0.97018% to 0.88909%.
  • 12 month decreases from 1.07621% to 1.01839%.

As we are entering into the month of June, all eyes are on US Federal Reserve whether they will raise the interest. The Fed will definitely increase the interest rate. The question is when? Interest hike will affect the borrowing cost, it is time for all the Investors to review your current investment portfolio and debt profile. Plan the next step before the day comes because it will affect your investment and loan monthly installment. Take initiative to evaluate your current mortgage loan and work on Refinance Plan before the mortgage loan interest shot up even further.

Fed’s Fischer sees short-term rate at 3.25%-4% in three to four years


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

Check out the very pragmatic and educational public seminar here “Investing in Singapore REIT“.

Continue ReadingSingapore REIT Fundamental Analysis Comparison Table – 1 June 2015