It is essential for investors to know what a particular company does and how it makes money before investing in it. Investing in businesses without such knowledge is akin to speculation. On that note, let’s check out what business Keppel Corporation Limited (SGX: BN4) is involved in and how it generates revenue. As a quick introduction, Keppel is a conglomerate with four main business divisions, namely, Offshore & Marine, Property, Infrastructure, and Investments. Let’s look at Keppel’s segment revenue for the financial year ended 31 December 2017 below:Source: Keppel Corporation Limited 2017 annual report The Offshore & Marine division brought in around 30% of total revenue in 2017. The main activities of this segment are offshore rig design, construction and repair, ship re

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 783.05  to 777.45 (-0.72%) as compared to last post on Singapore REIT Fundamental Comparison Table on Dec 3, 2018. Currently the index is trading in a down trend channel and testing a Resistance Turned Support at about 774. If this support holds, the REIT index will be moving side way in a consolidation range. Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction SIDE WAY to DOWN! The REIT index will be capped by the immediate resistance at about 800 which is the 200D SMA resistance and also the round number.   Fundamental Analysis of 39 Singapore REITs The following is the compilation of 39 REITs in Singapore a

Growth in dividend yield is one of the things that resonates with most REIT investors. In order to grow dividend yield, REITs either have to drive positive rental reversion or acquire new yield-accretive properties. Among the S-REITs, there are three REITs that have been identified by market analysts to be in a leading position to grow inorganically. According to CIMB and UOBKH, these three REITs have been building a good debt headroom to allow themselves to pursue acquisition growth opportunities going forward. Investors Takeaway: 3 REITs With Yield-Accretive Acquisition Potential For Growth FIRST REIT First REIT reported 3Q18 gross revenue growth of 5.1 percent year-on-year while net property income grew 5.4 percent year-on-year. The growth is largely due to contributions from Siloam

Some real estate investment trusts (REITs) in Singapore’s stock market have been heavily sold down this year. Concerns over interest rate hikes, the US-China trade situation, and volatile emerging market currencies have been some of the main reasons for the steep sell-off. But, lower prices are actually good news for long-term investors. Depressed prices translate to higher distribution yields, and could represent great buying opportunities. With that said, here are three REITs on my Christmas wish list. A healthy REIT First Real Estate Investment Trust (SGX: AW9U) is a healthcare REIT that owns hospitals and nursing homes, mostly in Indonesia. Last month, the REIT made headlines as its unit price crashed by more than 15% within two trading days. One of the reasons for the sharp

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 767.98  to 783.05 (+1.96%) as compared to last post on Singapore REIT Fundamental Comparison Table on Nov 5, 2018. Currently the index is trading in a down trend channel after finding a short term support around 760. This support was tested on 4 occasions since mid Oct. Currently the REIT index moves above the 20D and 50D SMA indicates short term bullishness. There may be a chance the REIT index enters into side way consolidation mode based on chart pattern. Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction SIDE WAY to DOWN! The REIT index will be capped by the immediate resistance at about 800 which is the 200D SM

Against the backdrop of a rising interest rate environment, REITs seem to be one of the obvious losers. This is because REITs are asset-heavy investments that require high levels of leverage, borrowing substantial amounts of money to purchase properties that they subsequently rent out. Read Also: Increasing Interest Rates In 2018: Here Are 4 Ways Singaporeans Will Be Affected In Singapore, there are currently 39 listed REITs and a further nine business trusts (of which six are property related). On average, they have a debt to asset ratio of just under 35%. With rising interest rates, REITs will have to fork out more in interest payment, potentially reducing the distributions they can pay to investors. How REITs Have Performed In YTD 2018 To gauge the performance of REITs in 2018, we can l

1. SPH Reit  --  11th Oct 20182. Keppel Reit  --  15th Oct 20183. Keppel DC Reit  --  16th Oct 20184. Kep Infra Trust  --  16th Oct 20185. First Reit  --  16th Oct 20186. Kep-KBS US Reit  --  17th Oct 20187. Kep T&T  --  17th Oct 20188. Kep Corp  --  18th Oct 20189. FrasersCom Trust  --  19th Oct 201810. SGX  --  19th Oct 201811. Mapletreelog Trust  --  22nd Oct 201812. MapletreeInd Trust  --  23rd Oct 201813. Frasers Cpt Trust  --  24th Oct 201814. MapletreeCom Trust  --  24th Oct 201815. Suntec Reit  --  24th Oct 201816. M1  --  24th Oct201817. Semb Mar  --  25th Oct 201818. Parkway Life  --  25th Oct 20181

One of the most traumatizing experience for shareholders of Keppel KBS REIT was the announcement of the acquisition of Westpark Portfolio in Redmond. Keppel KBS is a Singapore listed real estate investment trust (REIT) which owns 11 office assets in 7 key regional markets in the USA. Westpark is a portfolio of 21 buildings located in the Redmond area, most famous for being where the original Microsoft resides. Keppel KBS proposed to acquire this portfolio for US$170 mil. By all accounts for their first acquisition, things should not be so traumatizing. I am not sure if its due to the rather negative overall market sentiments or what but the share price of Keppel KBS have fell 23% since the announcement of the acquisition. At one point it was 3 cents away from the price the rights was price

Keppel DC REIT (SGX: AJBU) has been having a good year so far. Over the past nine months, ended 30 September, its adjusted distribution per unit (DPU) rose 4.8%, on the back of acquisition contribution and rental top ups. In addition, DPU growth accelerated in the most recent quarter to 6.3%. But that’s not all. Beyond these impressive headline numbers, there are some developments that could bode well for its future. Low gearing affords it plenty of headroom for accretive acquisitions As at 30 September 2018, Keppel DC REIT had a gearing ratio of just 32.0%, which is one of the lowest among real estate investment trusts (REITs) in Singapore. It is also well below the 45% regulatory cap imposed by the Monetary Authority of Singapore. At its current level, Keppel DC REIT has an additional

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 802.97 to 761.61 (-5.15%) as compared to last post on Singapore REIT Fundamental Comparison Table on Oct 1, 2018.  The REIT index broke down from a Symmetrical Triangle, a consolidated pattern, to continue the bearish down trend with minimum index target of 740. Currently the index is trading in a very bearish mode with all 3 moving averages are trending down. More down side is expected although the FTSE ST REIT Index has dropped close to 13% from the peak. Based on the chart pattern and trend analysis, Short, Medium and Long Term trend for Singapore REIT direction is DOWN! Fundamental Analysis Price/NAV decreases from 0.99 to 0.93 (Singapore Overall REIT sector is under value now). Distribution Yiel

Earnings season is here again! Real estate invement trusts (REIT) have always been one of the favourite investment choices for risk adverse investors due to their stable earnings qualities. In this article, we will look at two REITs that have lived up to their investors’ expectations by delivering positive performance in their recent earnings updates. The first REIT that has performed well is Keppel DC REIT (SGX: AJBU). As a quick introduction, Keppel DC REIT is a REIT that owns data centres. Listed on December 2014, the REIT manages 15 data centres in Asia and Europe. For the quarter ended 30 September 2018, gross revenue grew 34.0% year-on-year to S$47.6 million while net property income (NPI) improved by 33.4% to S$ 43.0 million. The stronger performance was due to contribution from

Earlier this week, Keppel DC REIT (SGX: AJBU) released its 2018 third quarter earnings update. As a quick introduction for better context later, Keppel DC REIT is a real estate investment trust that invests in data centres. Its portfolio consists of 15 data centres across Asia and Europe. The Manager of Keppel DC REIT had given a presentation on the REIT’s latest results. In the presentation deck, I saw three slides on the REIT’s business that I think investors should pay attention to. The first slide shows a high-level summary of Keppel DC REIT’s income statement for 2018’s third quarter: Source: Keppel DC REIT 2018 third quarter earnings presentation We can see that the REIT had a good quarter. Its gross revenue, net property income, and distribution per unit (DPU) all grew by

On 16 October, Keppel DC REIT (SGX: AJBU) released its earnings update for the third quarter of 2018. The REIT, which has a portfolio of 15 data centres in eight countries, posted a 6.3% year-on-year increase in distribution per unit to 1.85 cents. Here are some of the other key details from Keppel DC REIT’s latest earnings update: 1. Gross revenue and net property income spiked by 34.0% to S$47.56 million and 33.4% to S$43.04 million, respectively, compared to a year ago. The higher revenue was due to higher rental top-ups recognised, which more than offset lower ad hoc service revenue and power-related revenue. Contributions from the acquisitions of Keppel DC Singapore 5, Maincubes Data Centre in Offenbach am Main, Germany, and Keppel DC Dublin 2 also resulted in the REIT’s h

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 808.04 to 802.97 (-0.63%) as compared to last post on Singapore REIT Fundamental Comparison Table on Sept 2, 2018.  The REIT index continues to trade within a tight range between 800 and 820 and is currently forming a Symmetrical Triangle (a medium term consolidation chart pattern). There are two chart patterns observed in this FTSE ST REIT Index. Head and Shoulders pattern is the trend reversal pattern, this is a bearish pattern. Symmetrical Triangle is a consolidation pattern, i.e. moving sideway. Thus, Short to Medium Term Singapore REIT direction: Side way to Down.   Fundamental Analysis   Price/NAV decreases from to 1.00 to 0.99 (Singapore Overall REIT sector is slightly under value no