Following the Fed committee’s view that inflation has no signs of overshooting above two percent, the market is now of the view that the gradual process of normalisation remains appropriate. This led to the easing of bond yields. In Singapore, the Singapore government 10-year bond yield has eased since peaking in May. OCBC Strategy: Get Defensive With REITs, But Be Selective As bond yield eases, OCBC is seeing some respite in demand for S-REITs in the near term. On top of that, the ongoing macroeconomic uncertainties emanating from the US-China trade friction. This will further drive investors’ flight to safety to REITs. Going forward, OCBC believes that S-REITs can warrant a strategic position in investors’ portfolio, albeit in a selective manner. From a tactical positioning, OCBC

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Vicom 28,300 6.17 167,400.00 25.0% 2. Singtel 46,000 3.11 143,060.00 18.0% 3. Frasers Logistic Trust 126,000 1.07 134,820.00 20.0% 4. M1 75,000 1.59 119,250.00 18.0% 5. Starhill Reit 100,000 0.68   68,000.00 10.0% 6. Far East Hospitality Trust 100,000 0.65   65,000.00 10.0% 7. Warchest - -     1,000.00 1.0% Total 698,530.00 100% Less: CFD Leverage @ 3.2%  (12,810.00) Net Gearing: 0.018x Net Total 685,720.00 100% August was a very good month for the portfolio.While there was ongoing market turbulent from the stock market that causes

Back when I was reviewing Frasers Logistics and Industrial Trust’s (FLT) Q2 2017 result, I notice the big difference between its dividend per unit in that quarter versus the same dividend per unit in Q2 2016. Back then the DPU declared was S$1.81 cents. If it is paid in Australian cents, it would be A$1.77 cents. In Q2 2016, the DPU for SGD and AUD was S$1.75 and A$1.75 respectively. FLT hedge their currency only 6 months and the hedge rate was A$1 to S$1.0647. In 2016, it was A$1 to S$1. Thus, currency depreciation or volatility, can affect the DPU paid out. There is also another difference between the result in Q2 2017 and 2016. The management fees paid out in units for Q2 2017 is lower, while in Q2 2016, FLT paid out its management fee fully in units. I wonder whether, in the even

FPL’s 3QFY18 core PATMI of S$157m (-13% YoY) came in above estimates, due to faster-than-expected recognition of development profits in Singapore. Net gearing improved 6%pts QoQ but remains high at 89% and suggests that more properties are likely to be injected into its listed S-REITs. Also read: Parc Esta new launch cond (former Eunosville) up for sale On the residential front, volumes jumped 35% QoQ to 897 units. (adsbygoogle = window.adsbygoogle || []).push({}); The recurring-income segments posted a mixed performance this quarter, with Singapore office seeing negative reversions and Hospitality SBU posting a 2nd quarter of net loss but solid occupancies in its Singapore retail and Australia investment properties. FPL has fallen 18.3% YTD, underperforming both Developers (-8.3%)

Keppel DC REIT (KDCREIT) has announced a new shell and core (S&C) data centre in Sydney, Australia, which will be constructed on the vacant land within the Macquarie Business Park precinct. The development will be undertaken by Macquarie Telecom, which is the current master lessee of KDCREIT’s S&C data centre – Intellicentre 2 Data Centre (IC2). Macquarie Telecom will also be the master lessee with a 20-year triple-net lease (with built-in annual rental escalations) in this new S&C data centre upon its completion between 2019 and 2020. KDCREIT’s attributable construction costs work out to between A$26m to A$36m, with an estimated NPI yield of over 7%. (Source: Keppel DC REIT) (adsbygoogle = window.adsbygoogle || []).push({}); St. Thomas Ville, a freehold 23-unit 18-y

Frasers Logistics and Industrial Trust (SGX: BUOU), which owns a portfolio of 61 properties in Australia and 21 in Europe, recently announced its results for the April to June period (the third quarter of its financial year). Here are the important takeaways from its earnings update: 1. Gross revenue was A$49.3 million, up A$9.1 million or 22.6% from the corresponding period last year. Adjusted net property income (NPI) rose 27.4% to A$39.3 million from A$30.8 million. 2. The higher NPI was driven by the contributions from acquisitions and annual fixed rental escalation. The new acquisitions (seven properties acquired in 2017 and 21 in May 2018) contributed A$7.4 million. 3. Distributable income rose 22.4% to A$30.7 million from A$25.0 million. Distribution per unit rose 2.9% to 1.80 Singa

First published in Business Times on 1 August, 2018 By Mak Yuen Teen and Chew Yi Hong Last year, we launched the Governance Index for Trusts (GIFT), the first-ever published governance index in Singapore that is specifically developed for listed real estate investment trusts (Reits) and business trusts (BTs) in Singapore. GIFT assesses both governance and business risk factors. We assessed 43 trusts. This year, we covered 44 trusts, comprising six that are constituted as stapled securities (SS), nine pure business trusts and 33 Reits. We excluded four newly-listed trusts that have not yet published an annual report at the cut-off date. Some changes were made to the index, including the addition of a small number of new demerit criteria, and replacing volatility of returns with a criterion

SINGAPORE, 31 July 2018 – Keppel DC REIT has retained the top ranking for the second edition of the governance ranking specifically designed for Singapore-listed real estate investment trusts (REIT) and business trusts (BT), joined at the top by CapitaLand Commercial Trust which has moved up from number 8 in last year’s ranking. Two other trusts made significant gains to enter the top 5, with Mapletree Commercial Trust moving from 15 to 4 to joint third position with Mapletree Greater China Commercial Trust (since renamed to Mapletree North Asia Commercial Trust), which made the biggest leap from number 26. Just half a point separated the top 4 trusts, making this GIFT ranking very competitive. Meanwhile, Frasers Logistics & Industrial Trust, which is ranked for the first time,

It seems Advanced Distribution Amount does change even though an amount was given before hand. Frasers Logistics and Industrial Trust announced a Private Placement and non-renounceable preference offering in April 2018, to fund the purchase of 21 properties in Germany and Netherlands from its parent Frasers Property Limited. As there are new units issued, usually a REIT or stock would declare an advance dividend distribution for existing shareholders, which the shareholders who joined later through the preference offering and placement, cannot enjoy. In the launch of equity fund raising article, it highlighted that an ordinary dividend of $0.0361 was announced. This has since been distributed. The advance distribution is $0.0069, which is for the period of 1st Apr to 21st May, which is th

The earnings season is back with numerous companies and real estate investment trusts (REITs) releasing their earnings updates over the next few weeks. Among the REITs that are releasing their results, I am keeping a close eye on two REITs in particular that have recently made major acquisitions and/or disposals that can impact their distributions. This earnings update will give investors a clearer picture of their post-dealing position. Frasers Logistics and Industrial Trust (SGX:BUOU), will release its earnings update on Wednesday, 1 August 2018. For the quarter ended 31 March 2018, it delivered a strong showing as gross revenue climbed 6.4% while distributable income rose 3.2%. In June, the trust completed its acquisition of 17 properties in Germany and four in the Netherlands, marking

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