DBS Research is fixing its eyes on Frasers Group given the many catalysts that are anticipated to drive up valuations. We take a look at the various listed companies under the group to see what’s making analysts excited about the prospects of the group based on the briefing held by Frasers Property(FP) on Frasers’ Day. Firstly, the group is looking into the expansion in Europe through acquiring properties in the continent. What makes Europe attractive is the freehold element for estates which means that the group can hold the asset for perpetuity unlike properties in Singapore which are mostly on a 99-year lease. This means that value of its properties will not be tied to a limited life-span, seeing sharp depreciation in the value of their assets. Furthermore, Europe is still maintaini

REITs with overseas assets has become increasingly popular and have proliferated on the SGX in recent years. These REITs span across all sub-sectors from classes from office, retail, industrial to even data centres. As an investor, what are the things to look out for before investing in REITs with overseas assets vs those that focus on Singapore only? We won’t mention REITs that have a mix of Singapore and overseas assets, such as Suntec REIT, because they are more difficult to analyze compared to those solely with foreign or Singapore assets. This difficulty arises because the local/foreign asset mix has a differing impact on performance, risk and returns. First up, let’s see which REITs have solely foreign assets and which only have Singapore assets. Singapore Foreign Office Ca

Previously known as Cambridge Industrial Trust, ESR-REIT (SGX: J91U) is the sixth largest industrial REIT in Singapore’s stock market. It has a portfolio of 48 industrial properties located around Singapore. Its properties, which are collectively valued at S$1.68 billion, include general industrial buildings, light industrial buildings, logistics facilities, hi-specs industrial space, and business parks. 2017 was a challenging year for the trust as it had delivered a poor financial performance. Gross revenue and net property income declined by 2.1% and 4.7%, respectively. Distribution to unitholders fared worse, falling by 7.7%. Furthermore, the REIT’s net asset value per unit slipped from S$0.634 in 2016 to S$0.593. Worryingly, beneath these poor numbers are even more aspects of t

In our universe of Real Estate Investment Trusts (REITs), the REITs can be structured in different ways. There is a few areas of differentiation Property Types. You have REITs investing in retail malls, commercial offices, overseas commercial offices, local industrial, local and overseas industrial, healthcare, data centers, hotels, hotels and service apartments, or a mixture of these. Tenant Lease Tenure. WALE stands for weighted average lease expiry, which measures the average time period in which all leases in a property will expire. For a long time, the local properties have a relatively short lease. The overseas properties market tends to have a longer lease. Expenses Structure. The Property Owner and their tenants pay different set of expenses: Gross Lease:  The property owner

Mapletree Logistics Trust (SGX: M44U) is an Asia-focused logistic REIT listed in Singapore. It has a portfolio valued at S$6.2 billion which consists of 124 assets located across Asia, including Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam. Since its listing in 2015, Mapletree Logistics Trust has grown at an impressive rate from its initial portfolio of just 15 properties in 2005. However, the future may not always mirror the past. To determine if the trust continues to have the potential to grow its distributable income in the future as it did before, I will take a look at three key aspects of the trust: 1) its gearing ratio; 2) potential positive asset revaluations; and 3) potential for organic income growth. Gearing ratio The gearing ratio is the amo

Listed as recently as 2016, Frasers Logistics and Industrial Trust (SGX: BUOU), or FLT for short, is certainly considered one of the younger REITs in Singapore. It focuses on investing in logistics and industrial real estate located exclusively in Australia. The trust owns a portfolio of around 6o properties worth around A$2 billion. Recently, I took a look at the trust’s 2017 annual report and found that in spite of its relative youth and geographically-concentrated portfolio, there are some positives about the trust that bode well for its future. Freehold land or long leasehold tenures FLT has strategically opted to invest in real estate that is freehold or have long leasehold tenures. As of 31 December 2017, 59.8% of its properties sit on freehold land, while a further 30.9% are on l

Frasers Logistics & Industrial Trust (FLT) (SGX: BUOU) was recently listed on the SGX on 20 June 2016. It is the first SGX-listed REIT that invests solely in industrial properties located in major cities in Australia. In this article, I’ll cover FLT’s development over a period of 20 months after its listing, the potential risks it faces, and discuss its plans towards the immediate future. Here are the 12 things you need to know about Frasers Logistics & Industrial Trust before you invest. Track record 1. FLT was listed with an initial portfolio of 51 properties worth A$1.58 billion. The average age of FLT’s portfolio is relatively young at 6.1 years. 90.2% of its portfolio are freehold assets or leasehold assets with long remaining tenures of at least 80 years. 96.5% of its p

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Comfortdelgro 85,000 2.00 170,000.00 27.0% 2. M1 75,000 1.80 135,000.00 21.0% 3. Fraser Logistic Trust 100,000 1.08 108,000.00 17.0% 4. Ho Bee Land 30,000 2.55 76,500.00 12.0% 5. Starhill Reit 100,000 0.73 73,000.00 11.0% 6. Vicom 8,000 6.05 48,400.00 8.0% 7. Tuan Sing 40,000 0.445 17,800.00 3.0% 8. Singtel 4,000 3.35 13,400.00 2.0% 9. Warchest - -   2,000.00 1.0% Total 644,100.00 100% I'm updating the portfolio rather earlier than usual during the month as I'll be heading off to my Taiwan trip next week and will spend quite a bit of time there and only be back towards

Real Estate Investment Trusts (REITs) are one of the most popular investment choices for investors in Singapore. This is because REITs give investors exposure to the property market, in Singapore and in diverse overseas markets, as well as offer relatively good returns. In 2017, the SGX S-REIT 20 Index, comprising 20 of the largest and most highly-traded REITs listed in Singapore, delivered a return of close to 27.1%. This strong showing has been followed up by relative weakness in the year-to-date 2018, delivering a return of negative 4.8%. Compared to the broad market, the Straits Times Index (STI) has delivered a slightly lower return of 18.1% in 2017, but continued to deliver a return of 4.3% in the year-to-date 2018. This month, majority of the REITs announced their FY2017 results. H

In late January, Frasers Logistics and Industrial Trust (SGX: BUOU) released its first quarter earnings update for its fiscal year ending 30 September 2018 (FY2018). As a quick introduction, Frasers Logistics and Industrial Trust is a REIT that currently owns 61 industrial and logistics properties in Australia. Its assets are concentrated within major industrial markets in the country, which include Melbourne, Sydney, and Brisbane. The Manager of the REIT had given a presentation on the trust’s latest results. In the presentation deck, I saw three slides about its business that I think investors should pay attention to. The first slide shows a high-level summary of Frasers Logistics and Industrial Trust’s income statement for the first quarter of FY2018: Source: Frasers Logistics

We are in the midst of the earnings season. As is common with every earnings season, there will be some real estate investment trusts (REITs) posting growth, some posting mixed numbers while others experience declines. So, which are the REITs that have reported positive results recently? Let’s look at two of them. Viva Industrial Trust (SGX: T8B), or VIT, is one of those REITs that has delivered commendable result recently. As a quick introduction, VIT is a REIT that invests in a portfolio of real estate that is predominantly for business parks and other industrial purposes. Currently, VIT’s portfolio comprises of nine properties located in Singapore. Gross revenue grew 10.8% to S$28.34 million whilst net property income (NPI) improved grew 14.3% to S$20.66 million as compared to the

No.  Counters No. of Shares Market Price (SGD) Total Value (SGD) based on market price Allocation % 1. Comfortdelgro 85,000 2.00 170,000.00 27.0% 2. M1 75,000 1.80 135,000.00 21.0% 3. Fraser Logistic Trust 100,000 1.08 108,000.00 17.0% 4. Ho Bee Land 30,000 2.43 72,900.00 11.0% 5. ST Engineering 20,000 3.24 68,400.00 10.0% 6. Vicom 8,000 5.83 46,640.00 8.0% 7. Tuan Sing 40,000 0.44 17,400.00 3.0% 8. Singtel 4,000 3.38 13,520.00 2.0% 9. Warchest - -   2,000.00 1.0% Total 633,860.00 100% What I thought to be an easy January month turned out to be different as we head towards the month of February.Volatility in the market is back and already we've seen the DJI drops more than 1000 points in two

For the year to date until 22nd Jan, REITs have returned on average 2.6%. On an annualized basis, returns would be close to 50%. However, that large number is but of course due to the short term positive return. (adsbygoogle = window.adsbygoogle || []).push({});  Returns will likely be volatile over the next few months as the Fed signals their intention to return to a normalized interest rate level – impacting interest rate sensitive REITs. Those with higher gearing such as IREIT Global, Mapletree Greater China Commercial Trust, Soilbuild REIT and Viva Industrial Trust may be at risk due to higher interest burdens. The returns for the various sectors are as follows: Office: 2.8% Retail: 1.8% Industrial: 2.5% Hospitality: 4.2% Healthcare: 0.9% Data centre (only Keppel DC REI

Yesterday, Frasers Logistics and Industrial Trust (SGX: BUOU) made public its first-quarter earnings while Parkway Life REIT (SGX: C2PU) and CDL Hospitality Trusts (SGX: J85) released their full-year earnings this morning. Here are some quick highlights from the earnings announcements: Frasers Logistics and Industrial Trust (FLT) 1) Revenue for the first quarter ended 31 December 2017 grew 6.9% year-on-year to A$42.4 million. 2) Adjusted net property income (NPI) went up 8.9% to A$33.4 million. This version of NPI is the “actual net property income excluding straight lining adjustments for rental income and after adding back straight lining adjustments for ground leases”. 3) The growth in adjusted NPI was mainly due to the acquisitions of four completed properties, and the practic

Frasers Logistics and Industrial Trust (SGX: BUOU), which held its initial public offering (IPO) in June 2016, is the first Singapore-listed REIT that focuses on Australian industrial properties. On 25 January 2018, the REIT will be releasing its first quarter earnings for its fiscal year ending 30 September 2018 (FY2018). Let’s take a look at how it did in FY2017 to have a feel for what the REIT may report. The table below shows the REIT’s actual income statement in FY2017 compared to its forecast (do note that FY2017 contains 15 months; it started from 20 June 2016): Source: Frasers Logistics and Industrial Trust FY2017 earnings presentation We can see that the REIT’s gross revenue, adjusted net property income, distributable income to unitholders, and distribution per unit a

Frasers Logistics and Industrial Trust (SGX: BUOU), or FLT, is the first Singapore-listed real estate investment trust (REIT) with an initial pure-play Australian industrial portfolio. FLT owns 61 Australian industrial real estate assets concentrated within major industrial markets in Australia, which includes Melbourne, Sydney and Brisbane. There are two things about the REIT that investors may want to know about right now – its latest financial performance and valuation. Financial performance Here’s a table showing important items from FLT’s financial performance for the year ended 30 September 2017 (FY2017). Source: FHT Fourth Quarter Result For FY2017 Overall, we see that all actual metrics were higher than forecast metrics, both quarterly and annually. Robert Walla

First of all, apologies for the lack of recent posting as I had just returned from a 2 week work trip overseas followed by a week of holiday thereafter back to back.As we are winding down this year, I would like to take some time to do a self reflection review of the performance for this year.While we still have a few trading days to end the year, I really want to summarize and close for this year so that I can already start preparing for the new year ahead, which promises to be another exciting year.I took some feedbacks from readers when I wrote about the 2016 performance (Link Here) last year and I try to provide as much as I can.I don't keep a lot of tracking myself personally because most of the information are stored in my personal profile at stockscafe so I'm dependent for most of t

*As of 31 March 2017CounterAverage PriceYield on cost(%)WeightageFraser Logistics & Industrial Trust0.93177.509.01%Starhub3.47004.608.39%SIA9.86002.007.95%Singtel3.67004.747.89%First REIT1.25326.386.16%ParkwayLife REIT2.40005.105.80%M12.36005.005.71%SembCorp Industries2.45003.255.27%UOB Bank18.21504.004.89%Capitaland Mall Trust1.90505.804.61%CDL Hospitality Trust1.30506.803.16%AimsAmp Cap REIT1.33008.407.15%Keppel Corp5.37005.004.33%SPH3.75005.003.02%Keppel DC REIT1.08226.172.33%Capitaland Commercial1.35236.151.82%SPHREIT0.92935.801.75%Ascendas Hospitality0.69918.030.94%Mapletree Logistics0.98007.400.79%STI ETF2.80583.509.05%Total5.19100.00%LegendCDPSCBTotal Invested Capital = $37,215.27Total Expected Dividends/month = $160.96Average Dividend Yield = 5.19%To sum it all, the month of Ma

*As of 1 March 2017 Counter Average Price Yield on cost(%) Weightage Starhub 3.4700 4.60 9.28% SIA 9.8600 2.00 8.79% Singtel 3.6700 4.00 8.72% Fraser Logistics & Industrial Trust 0.9267 7.50 7.43% First REIT 1.2525 6.75 6.70% ParkwayLife REIT 2.4000 5.10 6.42% M1 2.3600 5.00 6.31% SembCorp Industries 2.4500 3.00 5.82% UOB Bank 18.2150 4.00 5.41% Capitaland Mall Trust 1.9050 5.80 5.09% CDL Hospitality Trust 1.3050 6.80 3.49% Keppel Corp 5.3700 5.00 4.79% SPH 3.7500 5.00 3.34% Keppel DC REIT 1.0822 6.17 2.57% Capitaland Commercial 1.3523 6.15 2.01% SPHREIT 0.9293 5.80

*As of 30 November 2016CounterAverage PriceYield on cost(%)WeightageUOB Bank17.86004.0011.88%OCBC Bank8.60004.0011.22%Starhub3.47005.7010.19%Singtel3.67004.009.58%M12.36005.506.93%SembCorp Industries2.45003.006.39%Capitaland Mall Trust1.90505.805.59%Fraser Logistics & Industrial Trust0.92007.005.40%First REIT1.25006.753.67%Keppel Corp5.37005.005.25%SPH3.75005.003.67%Keppel DC REIT1.08226.172.82%Capitaland Commercial1.35236.152.21%SPHREIT0.92935.802.12%Ascendas Hospitality0.69918.031.14%Mapletree Logistics0.98007.400.96%STI ETF2.80583.5010.98%Total4.84100.00%LegendCDPSCBTotal Invested Capital = $30,660.37Total Expected Dividends/month = $123.66Average Dividend Yield = 4.84%Now, we have yet another surprise in the markets this month, when the US elected the wildcard in all these time, no