REITs are a popular and important part of the Singapore Exchange (SGX). There are close to 50 listed REITs, property-related business trust and REIT ETFs in Singapore. There are also numerous other unit trusts invested into Singapore and foreign listed REITs in Singapore. To get a better understanding of how well or badly Singapore REITs have performed, we dedicate significant time and resources to publish a report card each quarter. If you wish to catch up on previous quarters, you can refer to our regular REITs Report Card column. Read Also: Complete Guide To Investing In Singapore REITs How Has Singapore REITs Performed In The Year-To-Date 2019 To gauge how the Singapore REIT market has performed in the year-to-date (YTD) 2019, we can look at the iEdge S-REIT Index and the iEdge S-REIT

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) broke down from a Symmetrial Triangle consolidation pattern but rebounded from 200D SMA support. The REIT index has changed from 929.69 (last post) to 906.82 (-2.52%). Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Oct 8, 2019. Based on the current chart pattern,  the sentiment is BULLISH in the long term but REIT index is currently going through a correction.  REIT Index has to go above the 20D & 50D SMA in order to continue the uptrend. The recent sell off could be a welcomed correction before REIT index can charge higher.   Fundamental Analysis of 40 Singapore REITs The following is the compila

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) is currently trading in a Symmetrial Triangle consolidation pattern on an uptrend. The REIT index has little change from 927.94 to 929.69 (+0.19%). So far 50D SMA proves to be a good support.  Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Sep 6, 2019. Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP. Breaking out from a symmetrical triangle will send the REIT index to march towards the minimum target of 970.   Fundamental Analysis of 41 Singapore REITs The following is the compilation of 41 REITs in Singapore with

For investors who are nearing retirement or looking to retire soon, one key characteristic they should look for in REITs is income stability. This means the REIT should have a track record of paying out a dependable and predictable distribution per unit (DPU) so as to provide investors with peace of mind and a good night’s sleep. The problem is that not every REIT makes a great investment, and investors need to be discerning when it comes to choosing a REIT they can hold on to for the long term. One factor to consider is the presence of a strong sponsor, as this can lower borrowing costs for the REIT and also provide it with a ready pipeline of properties for acquisition. You should also observe the track record of asset under management (AUM) growth and the stability of DPU over th

REITs offer investors exposure to different types of properties in different locations around the world. The beauty of having a wide variety of REITs listed on our local stock exchange is that investors can select REITs that are appropriate for their own portfolio preferences and risk tolerances. Investors who are keen on gaining exposure to European real estate can consider these three REITs. 1. iREIT Global iREIT Global (SGX: UD1U) is a Singapore REIT that invests in a portfolio of income-producing real estate in Europe used primarily for office, retail, and industrial purposes. Its portfolio currently consists of five freehold properties located in Germany with a total net lettable area of around 200,600 square metres, along with 3,400 car park spaces. For its Q2 2019 earnings, the REI

Frasers Centrepoint Trust (SGX: J69U), or FCT, is a REIT with property portfolio comprising of suburban retail properties in Singapore. Recently, I came across FCT’s latest investor presentation and found it to be highly informative. In particular, there are two simple charts that will be useful to demonstrate why FCT is a solid REIT. Financial track record Source: FCT’s Investor Presentation There are a few interesting things to note here. To start with, FCT grew its revenue and net property income (NPI) in almost every single year, with the exception of 2016 and 2017 (mainly due to asset enhancement in Northpoint City North Wing). In the last decade, NPI has grown at a compound annual growth rate (CAGR) of 9.3%. Such a growth rate is quite impressive for a REIT, e

Real estate investment trusts (REITs) are known to employ a variety of methods to fund mergers and acquisitions (M&A), and these include options involving debt and equity. The most straightforward method used by REITs would be to take on more debt, but this will increase its leverage ratio (i.e. total debt divided by total asset) and may offer it less room to take on debt in future. The maximum leverage that a REIT can take up is 45%, so many REITs tap on capital markets as an alternative source of funding. Secondary share placements are a common source of fundraising and involve the issuance of new shares to a new group of investors who take up a stake in the REIT. Such placements will increase the issued share capital base of the REIT and be dilutive to distribution per unit (DPU),

The whole world will find out next week whether The White House has got its way with the US Federal Reserve. The US central bank is widely expected to give in to the childish name-calling by cutting interest rates by a 0.25% to 2%. There are also interest rate decisions from the Bank of Japan, which doesn’t have much room to cut, and the Bank of England, which has been left high-and-dry by a directionless UK parliament. Meanwhile, Bank Indonesia could leave interest rates unchanged after it unexpectedly cut rates in August. China will release retail sales numbers for August. They are expected to show a pickup in growth from the previous month. In July, sales growth slowed for garments, cosmetics and home appliances. But there was growth in personal care and office supplies. Sin

Frasers Centrepoint Trust (SGX: J69U), or FCT, is a real estate investment trust (REIT) with a portfolio comprising of the following suburban retail properties in Singapore: Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Bedok Point, Changi City Point, and Waterway Point (one-third interest). It also holds a 31.15% stake in Hektar Real Estate Investment Trust (KLSE: 5121), a retail-focused REIT in Malaysia. There are two things to know about the REIT right now: its latest financial performance and valuation. Financial performance Here is a table showing important items from FCT’s financial performance for the third quarter of financial year ending 30 September 2019 (FY19). Source: FCT Result Presentation Overall, we c

Globally, real estate investment trusts (REITs) have performed well this year. The low-interest-rate environment and uncertainty surrounding geopolitical events have seen investors flock to the safe havens of REITs. It is, therefore, no surprise to see that two of the three best-performing constituents of the FTSE ST Mid Cap Index over the first eight months of 2019 were REITs. The two REITs were also rewarded with inclusion into key indices that will increase their profile to investors. Mapletree Commercial Trust (SGX: N2IU) will replace Hutchison Port Hldg Trust (SGX: NS8U) in the Straits Times Index (SGX: ^STI), while Frasers Centrepoint Trust (SGX: J69U) will become part of the FTSE EPRA/NAREIT Global Real Estate Index Series.  Here are some things to note about the Mapletree Com

Since I bought Frasers Logistics and Industrial Trust (SGX: BUOU) last year at an average price of S$1.05, its units have climbed around 15%. Despite the run-up in price, I still believe it remains an attractive investment. With that in mind, here are three reasons why I intend to hold on to this industrial-focused real estate investment trust (REIT) for now. Favourable leases Frasers Logistics and Industrial Trust, which is backed by property giant Frasers Property Ltd (SGX: TQ5), boasts a solid portfolio of properties with favourable leases. As of 30 June 2019, it had 59 Australian properties and 22 European properties.  The properties in Australia have a weighted average lease expiry of six years and negotiated annual rental increment of 3.1%. 92% of its European properties a

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) continues its uptrend after finding support at the uptrend support at about 890-900, changing from 895.14  to 927.94 (+3.67%). Uptrend is still intact as long as the uptrend line support line holds.  Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Aug 19, 2019. Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP. The recent selling is a healthy correction before the REIT index can move higher.   Fundamental Analysis of 42 Singapore REITs The following is the compilation of 42 REITs in Singapore with colour coding of th

While most investors invest in REITs to obtain a steady stream of dividend income, the fact is that REITs also grow over time, either through organic means (through asset enhancement initiatives or renovations) or through mergers and acquisitions. Acquisitions are a favoured method because it will instantly provide a boost to both asset size (and value) and usually also comes with an increase in distribution per unit (DPU). Investors need to be discerning though – not all acquisitions are beneficial for the REIT. Some assets may be sub-par, and even for quality assets, REITs may also end up over-paying for them, resulting in value destruction for existing unitholders. Investors should carefully size up the facts and figures relating to each acquisition to assess if it boosts the ove

The tenant leases for commercial properties in China, Hong Kong and Singapore are rather unique in that they are shorter. There are no rental escalation. Typically, the tenure is less than 5 years. In Singapore and Hong Kong, the commercial offices and shopping centers have 3 to 5 year leases. When real estate investment trusts (REITs) that owned foreign commercial properties came over to Singapore, their leases looked pretty unique to the Singapore investors. The investors welcome the longer leases, which also usually comes with annual rental escalations. If there were no annual rental escalations, there are typically mid term reviews. However, we might have missed some of the drawbacks with these different lease structure as well. The Differences between USA and Singapore

With the REITs’ reporting season just over, investors who are searching for a strong REIT to invest in may be drawn to the stable of industrial REITs listed on the local stock exchange. Industrial REITs may make great investments if their portfolios consist of quality, well-located assets with long land tenure. Consistently strong demand for industrial space should prop up rental rates and ensure positive rental reversion over time, leading to higher distribution per unit (DPU) for investors. I decided to look at which industrial REIT offers the best investment prospects, choosing from five REITs that are well-known in the industrial space and have good historical track records. They are ESR-REIT (SGX: J91U), Mapletree Logistics Trust (SGX: M44U), Mapletree Industrial Trust (SGX: ME

As one of the most popular investments in Singapore, we keep a close eye on the performance of S-REITs. After the corporate earnings announcements each quarter, we compile a comprehensive summary on our REITs Report Card column. How Singapore REITs Share Prices Have Fared In 2019, So Far Before we look at how individual REIT prices have moved, let’s look at the broad S-REIT indices in Singapore. There are two main indices – the iEdge S-REIT Index and the iEdge S-REIT 20 Index. The iEdge S-REIT Index comprises all the REITs listed in Singapore, while the iEdge S-REIT 20 Index, as its name suggests, only comprise the 20 largest and more tradeable REITs on the iEdge S-REIT Index. Read Also: Complete Guide To Investing In Singapore REITs The chart below depicts the iEdge S-REIT Index fluc

Mapletree Logistics Trust (SGX: M44U) is a real estate investment trust (REIT) that owns 137 logistics properties around Asia and Australia. There are three good reasons for investors to like the REIT now. A solid track record One of the very first things to like about MLT is its solid historical financial performance. Over the last five years, MLT has grown its gross revenue from S$330.1 million in FY14/15 to S$454.3 million in FY18/19. Similarly, its distributable income grew from S$184.9 million to S$270.0 million during the period. Consequently, distribution per unit (DPU) grew from 7.500 Singapore cents in FY14/15 to 7.941 Singapore cents in FY18/19. Such numbers should be appealing to investors looking for investments with sustainable income, but can MLT sustain its historical

Mapletree Logistics Trust (SGX: M44U) and Cache Logistics Trust (SGX: K2LU) are both real estate investment trusts (REITs) in Singapore’s stock market that focus on logistics properties. But over the past five years, the two REITs have given their investors very different experiences. In that time, Mapletree Logistics Trust’s shares have produced a dividend-adjusted return of 80% and significantly outperformed Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI), which climbed by 12% after including gains from dividends. Meanwhile, Cache Logistics Trust’s shares have delivered a 5% loss. Will Mapletree Logistics Trust continue to be the better investment compared to Cache Logistics Trust for the next five years? Let’s take a look. Busine

The Trade War is escalating.You can feel that coming as investors as you read the news that both Trump and Xi had continuously been playing a game of cat and mouse and it appears there's no way both could get a mutual agreement that might compromise one another.Last night was a bloodbath as Dow was down more than 600+ points while Nasdaq had fallen by 3%.It's pretty drastic in my opinion, but we are getting the hang of it with Trump.Up 2% on one night, down 3% the next day, and then up another 2%, and then down another 3%.Monday is going to be interesting especially for our STI index which is still at 3,110, and are still up by about 4-5% (inclusive of dividend) year to date.Not cool at all given we want a bigger drop like the ones we've seen most recently in 2016, at the very least.The ye

Here's why investors should be pleased about Frasers Logistics and Industrial Trust's (SGX: BUOU) recent private placement and acquisition.