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

MARKET OVERVIEW- The market could be buoyed by the influx of fund flows arising from the stronger SGD following the tightening of monetary policy last Fri. - Oil-linked counters could benefit as crude soared to a 3-year high as US stockpiles drop. - Technically, the STI has broken above its downward trend channel since 24 Jan 2018 and could retest overhead resistances at 3,570 and 3,610.CORPORATE RESULTS*Keppel REIT- 1Q18 results in line, even though DPU slipped 2.1% to 1.42¢. - Gross revenue and NPI eased to $39.7m (-0.3%) and $31.2m (-0.6%), respectively, amid weaker contribution from 275 George Street.- Portfolio committed occupancy dipped 0.3ppt q/q to 99.4%, while aggregate leverage ticked lower by 0.1ppt q/q to 38.6%.- Offers annualised 1Q yield of 4.7%, and trades at 0.86x P/B.- MK

Chief Executive Officers (CEOs) are the people that run companies, make critical operational decisions that impact everything from employee morale to balance sheet health to futures business direction. This job usually comes with immense pressure to perform and long-hours to get the work done. Obviously, this job is not for the faint-hearted. This also often means that they are the most handsomely paid employee in the company. In this article, we look at how much the biggest listed companies in Singapore, those on the Straits Times Index (STI), paid their CEOs in FY2017. CEO Salary In FY2017 Three companies did not divulge the remuneration of their chief executive – Jardine Matheson Holdings; Jardine Strategic Holdings; and Hongkong Land. Also Read: How Much Money Do You Actually Take

The Singapore earnings season goes into full swing next week with first-quarter numbers from Keppel Corporation (SGX: BN4). In the final quarter of 2017, the industrial conglomerate posted its first ever quarterly loss. It was pushed into the red after booking a one-off penalty from a bribery case in Brazil. The company will hope that this will draw a line under its offshore and marine business. Singapore Exchange (SGX: S68) will report third-quarter numbers. In the second quarter, higher marker activity lifted earnings from equities and fixed-income trading. SGX was also able to keep expenses under control, which helped to boost earnings. In the fourth quarter CapitaLand Mall Trust (SGX: C38U) raised its distribution per unit by 0.7%, thanks to an improvement in gross revenues. The com

CapitaLand Mall Trust (SGX: C38U) is Singapore’s first and largest retail real estate investment trust (REIT). Some of the malls in its portfolio include Tampines Mall, Junction 8, and Plaza Singapura. In 2017, the REIT under-performed both the FTSE ST REIT Index (SGX: FSTAS8670), and the Straits Times Index (SGX: ^STI). The indices gained 20.6% and 18.1%, respectively, for the year, while CapitaLand Mall Trust’s unit price increased by just 13%. Part of the under-performance could be due to the REIT’s muted financial performance and the slowdown in the retail environment. In 2017, CapitaLand Mall Trust’s gross revenue declined by 1.1% to S$682.5 million, while net property income (NPI) dipped by 0.3% to S$478.2 million. I looked through the Growth Strategies section of Capi

CapitaLand Mall Trust (SGX: C38U), or CMT for short, holds the distinguished title of being both the first and largest retail real estate investment trust (REIT) in Singapore. It has a portfolio of 16 shopping malls located around Singapore, which include prominent properties such as Tampines Mall, Plaza Singapura and Clark Quay. I recently wrote an article on three concerning trends that may affect CMT’s business. However, there are also some positives from its latest results that are worth a mention. Redevelopment of Funan on track Funan was closed for reconstruction in the middle of 2016. Management targeted the opening of the new mall for the fourth quarter of 2019. However, with the recent good progress of the construction works, they believe that there is a good chance that the

CapitaLand Commercial Trust (CCT) was listed on 11 May 2004 as the first commercial REIT on the SGX. It invests in a portfolio of 10 commercial properties in Singapore worth S$10.4 billion as of 31 December 2017 and, hence, remains the largest commercial REIT in the country. In this article, I’ll bring a detailed account of the performance of each property owned by CCT, their impact to CCT’s financial results, and discuss CCT’s plan to deliver sustainable returns in the future. Here are 15 things you need to know about CapitaLand Commercial Trust before you invest. Property portfolio 1. Capital Tower is a 52-storey Grade-A office building which is linked to the Tanjong Pagar MRT station. In 2017, the building is valued at S$1.36 billion, accounting for 13.1% of CCT’s total portfol

CapitaLand Mall Trust (SGX:C38U) is the largest retail real estate investment trust (REIT) in Singapore. It currently has an impressive portfolio of 16 shopping malls located around our Garden City. Some of the malls in its portfolio include prominent destinations such as IMM, Plaza Singapura, and Clark Quay. The REIT released its 2017 full year results a few months ago. Although the headline numbers of distributable income and distribution per unit both grew during the year, there are some worrying trends that investors should keep an eye on. Declining shopper traffic The retail market in Singapore is being disrupted by e-commerce, as online retail has reduced the need for shoppers to shop at physical malls. This is illustrated by a 0.3% decline in shopper traffic in 2017 in CapitaLan

Lippo Malls Indonesia Retail Trust (SGX: D5IU), or LMIRT for short, is an Indonesian retail REIT listed in Singapore. It owns a portfolio of 23 retail malls and seven retail spaces located across four cities in Indonesia. Last year, LMIRT increased its debt load to acquire two new properties, which prompted Moody’s to review the trust’s credit rating. If its credit rating is downgraded, LMIRT’s ability to secure additional loans or refinancing might be compromised. It might consequently have to obtain loans at a higher interest rate. A higher cost of debt, will, in turn, affect earnings and distributions. I have done some research on the REIT and have concluded that despite Moody’s review on the REIT’s credit rating, LMIRT has been able to manage its debt strategically over the

The Straits Times Index (SGX: ^STI), which tracks the performance of the 30 largest and most liquid companies listed in Singapore, declined in March. For the month, the local stock market benchmark slumped by 2.6% to 3,428 points. Of the 30 index components, seven were in the green while 23 were in the red. The top three winners within the STI in March were CapitaLand Commercial Trust (SGX: C61U), Singapore Technologies Engineering Ltd (SGX: S63), and CapitaLand Mall Trust (SGX: C38U).Source: S&P Global Market Intelligence In the middle of March, the trustee-manager of RCS Trust, an unlisted special purpose sub-trust that is 60%-owned by CapitaLand Commercial Trust and 40%-owned by CapitaLand Mall Trust, had issued S$275 million worth of fixed rate notes to investors under a US$2 bill

Top 30 in my portfolio: No. STOCK NAME No.of SHARES PORTFOLIO% MARKET $ 1SGX4,30010.137.372SATS4,0006.565.133OCBC Bank1,4385.8912.824UOB6335.5727.505CapitaLand Mall Tr7,8005.192.086Starhub7,0005.052.307SPH6,0004.832.528AIMSAMPI Cap Ind R10,0004.351.369Keppel Corp1,6003.977.7710CDL HTrust6,8003.671.6911Suntec Reit5,8003.501.8912SingTel3,1903.443.3713Keppel DC Reit7,4003.411.4414FCT4,7003.292.1915ParkwayLife Reit3,6003.222.8016Starhill Global Reit12,0002.800.7317SPH Reit8,5002.700.99518Mapletree Com Tr4,8002.411.5719CapitaLand2,0002.283.5720Frasers Com Tr4,8492.221.4321Bukit Sembawang1,0001.956.1122Sembcorp Indust1,8001.793.1123Ascendas Reit2,0001.682.6324Keppel InfraTr9,0001.540.53525SIA Engg1,5001.533.1826Frasers Property1,8001.152.0027Cache Log Tr4,0001.070.83528Frasers L&I

Performance of Straits Times Index (STI) Constituents in March 2018 The Straits Times Index (STI) ended 89.97 points or 2.56% lower to 3427.97 in March 2018.(compared to 3517.94 on 28-Feb-2018)Top Performers: CapitaLand Commercial Trust, ST Engineering, CapitaLand Mall Trust, Venture Corp, City Developments. Least Performers: Yangzijiang Shipbuilding, Hutchison Port Holdings Trust, StarHub, Jardine C&C, Genting Singapore. Most Volatile: Hutchison Port Holdings Trust, Yangzijiang Shipbuilding, City Developments, Jardine C&C, DBS Group. Advertisement Continue Reading »

Singapore’s REIT market will soon welcome a new member – Sasseur Real Estate Investment Trust – which will become the very first ‘outlet mall’ REIT to be listed in Asia. Just two weeks ago, Sasseur REIT lodged its prospectus with the MAS for an initial public offering of 13.8 million shares to the public at 80 cents each. If you’re interested, you can download and read the prospectus here (all 728 pages of it!). Sasseur REIT IPO prospectus. You only have a couple more days to consume it though, before applications for the IPO close on Monday, 26 March 2018, at 12 p.m. But if you don’t have the time to read all 728 pages before the deadline, let me help you out since I’ve gone through the document myself and was fortunate enough to be invited to the Sasseur REIT IPO roadsho

Frasers Centrepoint Trust (SGX: J69U) was listed on the Singapore stock market in 2006. Its portfolio comprises of six suburban malls in Singapore. They are Causeway Point, Northpoint City North Wing (inclusive of Yishun 10 retail podium), Changi City Point, Bedok Point, Yew Tee Point and Anchorpoint. Frasers Centrepoint Trust also owns a 31.15% stake in Hektar Real Estate Investment Trust (H-REIT). H-REIT is a retail-focused REIT in Malaysia that has a portfolio of seven retail properties. Frasers Centrepoint Trust has had a stellar record in the past, increasing its distribution per unit (DPU) by a compounded annual growth rate of 6.2%, from 6.55 cents in 2007 to 11.9 cents in 2017. It also has a low gearing ratio of just 29.7%, offering the REIT debt headroom for growth. From the financ

The idea seems like a no-brainer: you borrow money at low interest rates and invest it into high dividend yielding stocks. This way, you earn the difference on “free” money. If this is something you’ve thought about or heard your family and friends doing and are thinking of jumping on the bandwagon, here are some things you should know. Contra Trading While technically this isn’t considered borrowing to invest, the concept is very similar. You buy stocks without putting down any money and hope to gain on price appreciation. In Singapore, the settlement date can be up to T+3, which means you have to pay up for your trade on the fourth day after your purchase. Technically, you can “borrow” the trading limit on your account for up to four days interest-free. If you sell your stock

CapitaLand Malaysia Mall Trust (CMMT) was listed on 16 July 2010 as one of the largest pure-play shopping mall REITs in Malaysia. At that time, it had an initial portfolio of three retail malls valued at RM2.13 billion. Since then, CMMT has enlarged its portfolio to five retail malls and an office building valued at RM3.97 billion in total as at 31 December 2017. In this article, I’ll bring a detailed account of the performances of CMMT’s individual properties, their impact on CMMT’s group financial results, and discuss CMMT’s ability to deliver sustainable distributions to its unitholders in the near-future. Hence, here are 11 things you need to know about CapitaLand Malaysia Mall Trust before you invest. Initial portfolio 1. Gurney Plaza is a prime lifestyle retail mall located

Top 30 in my portfolio: No. STOCK NAME No.of SHARES PORTFOLIO% MARKET $ 1SGX4,30010.417.552SATS4,0006.675.203OCBC Bank1,4386.0213.064UOB6335.6627.895Starhub7,0005.612.506CapitaLand Mall Tr7,8005.052.027SPH6,0005.002.608AIMSAMPI Cap Ind R10,0004.391.379Keppel Corp1,6004.118.0210Suntec Reit5,8003.681.9811CDL HTrust6,8003.621.6612SingTel3,1903.463.3813FCT4,7003.332.2114Keppel DC Reit7,4003.321.4015ParkwayLife Reit3,6003.252.8216SPH Reit8,5002.721.0017Mapletree Com Tr4,8002.421.5718CapitaLand2,0002.333.6319Starhill Global Reit9,8002.290.7320Frasers Com Tr4,8492.221.4321Bukit Sembawang1,0001.966.1122Sembcorp Indust1,8001.853.2023Keppel InfraTr9,0001.630.56524SIA Engg1,5001.583.2925Fraser Property1,8001.131.9626Cache Log Tr4,0001.070.83527Frasers L&I Tr2,7000.941.0928ST Engg8000.87

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

Recently, I had the chance to meet the chief executive officer of Design Studio Group Ltd (SGX: D11), Edgar Ramani, and the company’s acting chief financial officer, Ronald Kurniadi, to learn more about the business and its growth plans. As a brief background, Design Studio was founded in 1992 and is a high-end interior fit-out and joinery manufacturing firm with automated manufacturing facilities in China and Malaysia. It has completed several residential, hospitality, retail, gaming, and cruise line projects in countries such as Singapore, Malaysia, China, and the US. Meeting a company’s management team can give us added insights that cannot be gleaned from reading annual reports alone. With that, here is what I learnt from Edgar and Ronald: 1. Depa Group, one of the world’s leadi

In early 2017, Sabana REIT has been getting a lot of attention when a small group of unitholders moved to kick out the manager for delivering poor performance since its IPO in 2010. Early investors who bought Sabana at an IPO price of S$1.05 are now sitting on huge losses – Sabana last traded at just 43 cents per share. If we look at the history, Sabana REIT isn’t alone. There are several other Singapore REITs (S-REITs) like Saizen REIT, MacarthurCook Industrial REIT and Allco REIT that have run into trouble before and caused a dent in Singapore’s REIT sector. Despite some casualties, Singapore’s REIT market remains vibrant – largely thanks to the majority of S-REITs that continue to deliver good results to income investors. In this article, we look at the performance of Singapor