Frasers Logistics & Industrial Trust (FLT) announced that it would be expanding to Europe via acquisition of a Special Purpose Vehicle that holds interest in 21 industrial properties located in Germany and the Netherlands.FLT is a Reit that holds 61 industrial and logistic properties in Australia worth about A$1.93 billion, concentrated in major cities of Sydney, Melbourne and Brisbane.It is part of the Frasers Property Group that also owns other Reits in retail, office and hospitality sector such as Frasers Centrepoint Trust and Frasers Commercial Trust and Frasers Hospitality Trust.Predominantly Freehold Prime Properties93% of the twenty one properties to be acquired are freehold. This means that investors need not worry about land use rights and properties value decay towards the en

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 27,000 6.20 167,400.00 25.0% 2. Frasers Logistic Trust 126,000 1.06 133,560.00 20.0% 3. M1 75,000 1.61 120,750.00 18.0% 4. Singtel 37,000 3.24 119,880.00 18.0% 5. Far East Hospitality Trust 100,000 0.66   66,000.00 10.0% 6. Starhill Reit 100,000 0.65   65,000.00 10.0% 7. Warchest - -     1,000.00 1.0% Total 673,590.00 100% It's time for another month of updates.Investors Exchange 2018First up, I wanted to update quickly on how the investors exchange talk went yesterday.I thought it was heartening to see so many people turned up and very serious about taking charge of their financ

The global stock market is growing concerned about the pace of rising interest rates on the stock market. In particular, the REIT share prices have been battered. Should you still be investing in REITs at this point in time? According to DBS, the answer is a resounding yes. DBS thinks that there are four REITs you should own even as the Fed raises interest rate. Investors Takeaway: 4 REITs You Should Own Even As Fed Raises Interest Rate Frasers Logistics & Industrial Trust Source: DBS Frasers Logistics & Industrial Trust has been making significant acquisitions in Germany and the Netherlands recently. The industrial properties are mainly modern logistics facilities located within major logistics clusters in Germany and the Netherlands, which cater to core distribution needs of b

REITs have traditionally been a mainstay in Singaporeans’ investment portfolio. However, with interest rates now rising, interest in REITs seem to have waned. However, DBS thinks that there are four good reasons why you should be investing in REITs at this point in time. S-REITs Aren’t Bonds, So Stop Pricing Them As One Investors and the market have been taking a cautious stance towards REITs due to rising interest rates and expensive valuations over the last five years. However, DBS opines that both investors and the market have been misreading drivers of REIT prices. After all, REITs are not straight out bonds and the impact of rising interest rates is mitigated by an expected upturn in rent rates. DBS notes that investors are incorrectly perceiving S-REITs as a straight forward bond

For investors who are interested in REITs investing, either because we’ve already bought some or are keen to start buying some, we should familiarise ourselves with the process of rights issues. This is because REITs, more often than other listed securities, tend to require raising funds. Read Also: [2018 Edition] Complete Guide To Start Investing In REITs In Singapore These are some reasons why: i) Unlike other businesses, the only way a REIT can really grow new revenue streams is to purchase new properties. This requires heavy financing. ii) REIT managers are constantly looking to add high-quality and yield-accretive properties into their portfolio. This sets them apart as a good REIT manager, as well as boosts distributions for unitholders and management fees for themselves. iii) REIT

MARKET OVERVIEW- Market sentiment remains fragile as investors anxiously await Fri's deadline when US tariffs on US$36b of Chinese imports will come into effect, with both sides showing no signs of backing down from the trade row.- Meanwhile, oil briefly topped $75 a barrel for the first time since Nov '14 before pulling back.- Technically, the STI could be drifting towards the crucial support level at 3,200 with immediate resistance at 3,280.POSITIVE NEWS*Frasers Logistics & Industrial Trust- Divesting an industrial facility in Smeaton Grange, New South Wales to The Trust Company (Australia) for A$90.5m.- This represents a 40.3% premium above the NAV of the property of A$64.5m and 39.2% premium over its purchase price of A$65m in 2016.- FLT is expected to recognise an estimated net dispos

Private placement is a method that listed companies or REITs use to raise more money. This is done through the sale of new shares or units to strategic individuals or institutional investors. What does a private placement mean for minority shareholders? Will the enlarged stock base affect the company’s earnings per share in the future? To answer these questions, shareholders need to analyse a few aspects of the private placement and the underlying company’s business. What is the purpose of the private placement? Perhaps the first and most crucial question that investors need to ask is what the company or REIT is going to use the money from the private placement for. There can be both positive and negative reasons that companies or REITs raise funds from private placements. One negative

Singaporeans’ fascination for property investments stem from its meteoric rise since our island nation gained independence. Even in a more developed property market we live in today, en-bloc sales continue to fuel renewed frenzies in properties. Even on the back numerous property cooling measures enforced to reduce speculation in residential properties, sky-high prices mean that property investments remain out of reach for ordinary Singaporeans. This is where real estate investment trusts (REITs) play their part – allowing ordinary investors to access property investments in Singapore and other major property markets by pooling our monies to invest in a diversified portfolio of properties.   Find Out More What Are REITs? 7 Types Of REITs Listed In Singapore How To Start Investing

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 27,000 6.05 163,350.00 24.0% 2. Frasers Logistic Trust 126,000 1.05 132,300.00 20.0% 3. M1 75,000 1.68 126,000.00 19.0% 4. Far East Hospitality Trust 125,000 0.65   81,250.00 12.0% 5. Ho Bee Land 30,000 2.45   73,500.00 11.0% 6. Starhill Reit 100,000 0.68   68,000.00 10.0% 7. Singtel 8,000 3.24   25,920.00 4.0% 8. Warchest - -     1,000.00 1.0% Total 671,320.00 100% It is time for another update for the month as we move towards the half year mark, a half-time update to reflect upon how we did in our portfolio.I'm currently on a 2 weeks break away from work to spe

Frasers Property is a property company that has businesses in Singapore, Australia, Southeast Asia, China and Europe. Their hospitality footprint spans over 80 cities across Asia Pacific, Europe, Middle East and North Africa. (adsbygoogle = window.adsbygoogle || []).push({}); Frasers is also a sponsor to four REITs, namely Frasers Centrepoint Trust (FCT), Frasers Commercial Trust (FCOT), Frasers Hospitality Trust (FHG) and Frasers Logistics & Industrial Trust. FCT invests in quality income-producing retail properties in Singapore and overseas, and to achieve long-term growth in net asset value. FCOT invests mainly in commercial real estate properties. FHT is a global hotel and serviced residence trust. Also read: Good performance all round by Mapletree REITs FLT invests in logisti

Despite an uninspiring quarter, analysts are still positive about these 3 S-REITs. Frasers Logistics & Industrial Trust In 2Q18, Frasers Logistics & Industrial Trust (FLT) saw its distribution per unit (DPU) rise by 3.4 percent year-on-year. This was led by inorganic contribution from the maiden portfolio acquisition of seven Australian properties. Its portfolio occupancy remains close to full at 99.4 percent with weighted average lease expiry (WALE) of 6.75 years. In particular, FLT managed to get Ball and Doggett (Sydney tenant) to expand and extend its lease for 10 years in this quarter. Since it proposed the portfolio acquisition of 21 European assets from its sponsor, FLT share price has been falling. The main concerns from the market were the sizeable equity fund raising,

Real estate investment trusts (REITs) are an asset class that investors in Singapore are highly interested in. The opportunity to own properties, not only in Singapore, but the rest of the world is enticing. This is coupled with relatively high yields – returning close to 6.5% per annum in distributions currently. Since the launch of CapitaLand Mall Trust, the first Singapore-listed REIT, in 2002, Singapore has gone on to see its REITs and business trusts market grow in breath and depth, to a combined market capitalisation of close to $100 billion today. Read Also: Investing in Property VS REITS: Which is Better The Singapore Exchange (SGX) has attracted REIT and business trust listings not only from Singapore but Europe, USA, China, Hong Kong, Indonesia, Japan, Malaysia, India, and Aust

ESR REIT and Viva Industrial Trust has finally announced their merger. To sniff out the details took longer than expected but I hope that my analysis is correct for all of us here. I am holding on to both ESR REIT and Viva Industrial Trust so I am affected both ways.Merged ESR Price on 18th May 2018 = $0.53Yield = 6.75%  Price-to-book Ratio = 1.034Assets per unit = $0.956Debt per unit = $0.443 (including current liabilities and perpetual securities)Gearing =  46.4%Secured NAV = $0.513 (97% of trading price)If you look at the announcement on both sides, it seems a win-win situation but I don't think so. Let's take a look at the argument.While there is an increment of 5.6% in yield to the merged yield of 6.75%, there is at the same time a 10% drop in NAV from $0.584 to $0.513, a lo

Frasers Centrepoint Limited listed on the SGX in January 2014. The company is a multinational integrated real estate conglomerate with a wide range of properties located primarily in Singapore, Australia, and China. As at 30 September 2017, Frasers Centrepoint has a total of S$27 billion in assets. On 1 February 2018, Frasers Centrepoint Limited changed its name to Frasers Property Limited to reflect its ambition of building a global property brand, and to provide greater clarity on its brand identity as the company has been operating under the name Frasers Property outside of Singapore for many years. In this article, I’ll cover the five-year performance of each of Frasers Property’s strategic business units and the company’s income visibility in near-term. By reading this, I hope i

Viva Industrial Trust (SGX:T8B) is a stapled security trust that invests primarily in business parks and industrial real estate in Singapore. The trust currently has a portfolio consisting of nine properties around the island. With a distribution yield of 8.35% (at the time of writing), the trust also has one of the most attractive yields in the Singapore REIT market. As such, I thought it might be interesting to take a closer look at some of the business fundamentals of the trust to find out if it can make a good investment. Here is what I found out from its 2017 results. Improved financial performance Source: Viva Industrial Trust 2017 Results Presentation 2017 was a good year for the trust. Gross revenue and net property income increased 17.4% and 19.5% resepectively. This was due to r

Frasers Logistics and Industrial Trust (SGX: BUOU) recently announced that it would be acquiring 21 properties in Germany and the Netherlands. Here’s a quick rundown on some of the details of the proposed transaction. A reasonable purchase price The acquisition is for 17 properties in Germany and four properties in the Netherlands for a purchase price of €596.8 million (S$972.8 million). The purchase price is a 1.2% discount to the actual appraised value of the properties of €603.9 million (S$984.4 million). After accounting for existing debt facilities of €262.7 million (S$428.2 million), the final purchase consideration price is €316.2 million (S$515.4 million). The transaction will be funded by equity fundraising through a private placement of new units (has been fully subscri

In addition to their attractive distribution yields, real estate investment trusts offer investors exposure to real estate assets, are typically less volatile than stocks, and have business returns that are generally easier to forecast than other types of companies. It is, hence, unsurprising that REITs have become one of the most popular investment vehicles in Singapore’s stock market. With the Singapore REIT market undergoing a minor price correction earlier this year, REITs now offer investors even more value than before. With this in mind, here are two REITs I bought last month and why I did so. 1. First Real Estate Investment Trust (SGX: AW9U) First REIT is a healthcare REIT that owns 16 properties in Indonesia, three in Singapore, and one in South Korea. Its properties are mostly

This is a continuation from the previous post where FLT decides to venture into their Germany and Dutch acquisitions.After the EGM was conducted and approved on the 9th May, they quickly came up with the details of the $476m equity fund raising activities which includes a private placement and a non-renounceable preferential offerings to existing unitholders.The private placement is issued at 345.8m new units at an issue higher end price of $0.987 each to raise gross proceeds of $332.7m. The private placement result shows that it was 3.9 times oversubscribed which saw strong participation channel from institutional investors.In addition, there is a non-renounceable preferential offering of 152.2m new units on the basis of 1 for every 10 existing units in FLT held at an issue pric

MARKET OVERVIEW- The market could be off to a nervy start following the shock election result in Malaysia but oil-linked counters may stand to gain from 3.3% jump in crude prices in the wake of the US exit from Iran and an unexpected drop in US stockpiles. - Technically, STI could continue to trade sideways in the near term within the broad 3,500-3,610 range.CORPORATE RESULTS*CSE Global- 1Q18 net profit surged 90% to $5.7m, achieving 37% of full-year consensus estimate.- Revenue jumped 23.7% to $92.2m from growth in oil & gas (+23.3%) and infrastructure (+24%) segments. These were mainly driven by oil & gas projects in the Americas (+66.7%).- Gross margin narrowed 2.4ppt to 26.8% but operating expenses were well contained, reflecting higher labour productivity and cost efficiencies.- Fewer

Current Price on 30th April 2018 = $1.08Yield = 6.67%  Price-to-book Ratio = 1.152Assets per unit = $1.39Debt per unit = $0.453 (including current liabilities)Gearing = 32.6%Frasers Logistics and Industrial Trust caught my eye because of its relative high yield compared to the rest of the Industrial REITs. Although it is still not within my target, it is worth a look.With a yield of 6.67%, it is actually higher than most of the bigger Industrial REITs in SGX. Ascendas REIT is yielding at 5.90% and Mapletree Industrial Trust is yield at 5.8%. Being one of the bigger boys in the market, it does seem attractive. Its price-to-book ratio is 1.152 which means it is trading at 15% premium. It gearing is at 32.6% which is quite low.With the acquisition of the Europe portfolio, it is set to gr