What are REITs (Real Estate Investment Trusts) A REIT, or real estate investment trust, is a group of properties that are bundled and packaged together under a structure that allows it to be listed on a stock exchange as a tradeable security. The REIT earns a steady rental income from leases signed with their its tenants. REITs are mandated by guidelines as to how they should operate in order to enjoy full tax transparency (i.e. they do not have to pay corporate taxes). One of these requirements is that a REIT needs to pay out at least 90% of its net profit as distributions to unitholders. Another is for regular quarterly reporting that is in compliance with the rules and regulations as stipulated by the Singapore Exchange. A third requirement is that REITs’ gearing level (i.e. total

In the first edition of our 4 Stocks This Week column in 2020, we zoom into the new companies that have been added into Singapore’s benchmark Straits Times Index (STI) in the past two years. When we invest in the STI, we are gaining exposure to a diverse and strong group of companies – or more commonly termed the 30 largest and most liquid companies – listed on the Singapore Exchange (SGX). Often, this is part of a passive investing strategy and to achieve market returns. While investors can take a hands-off approach and just let their investments grow over a long horizon, the STI itself is regularly reviewed and updated if there is a need. Read Also: SPDR STI ETF VS Nikko AM Singapore STI ETF: What’s The Difference Between These 2 Straits Times Index ETFs Listed On The SGX? Precis

Happy New Year 2020! The start of a new decade!   Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) is currently trading within Symmetrical Triangle.  The REIT index has changed from 905.48 (last post) to 926.24 (+.2.29%).Based on the current chart pattern,  the REIT index is trading within a consolidation range waiting for breakout. Probable direction for REIT index: Side way to Up. Also take note of the Multiple Tops formation which is a trend reversal pattern. Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Dec 16, 2019.   Fundamental Analysis of 40 Singapore REITs The following is the compilation of 40 REITs in Singapore with colour coding of

The weekly 4 Stocks This Week column on DollarsAndSense was started in 2017 with a simple objective was simple: to provide a convenient read each week for busy investors to stay updated with what is happening on the Singapore Exchange. 4 Stock This Week is not a recommendation from us to buy or sell any of the stocks that wke feature. Its purpose is to highlight interesting stocks that investors should be aware of, rather than to analyse these stocks. For this week’s edition, instead of the usual coverage of four stocks, we’ll do a year in review of the other 51 instalments of 4 Stocks This Week that our team has written in 2019. Over the past year (51 weeks), we’ve covered 123 SGX-listed stocks, 4 ETFs and 8 Daily Leverage Certificates. The most covered stock was Sas

Can anything stop Mapletree Logistics Trust? Since my last coverage on this counter in September 2019, the unit price had been on an incredible bullish form. The surging unit price of Mapletree Logistics Trust had created plenty of wealth for unitholders. Christmas certainly comes early for these investors! To be frank, I had underestimated the potential of this S-REIT. Amid the rally in the S-REIT sector, 2019 turns out to be a fantastic year for Mapletree Logistics Trust as its unit price rocketed from $1.30 in January to the current $1.68. The increase of almost 30% within a year is certainly very impressive for an S-REIT! It appears to me that the management is riding on the current industry upturn and seizing opportunities in the Asia Pacific region. In November 2019, Mapletree Logis

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) is currently trading within a range between 940 and 887.  The REIT index has changed from 906.82 (last post) to 905.48 (-0.14%). Based on the current chart pattern,  the REIT index is retracing back to test the 200D SMA support. Probable direction for REIT index: Side way to Up. Also take note of the Multiple Tops formation which is a trend reversal pattern. Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Nov 17, 2019.   Fundamental Analysis of 40 Singapore REITs The following is the compilation of 40 REITs in Singapore with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio. T

On 5 December, it was announced that Golden Agri share will be booted out of the prestigious Straits Times Index (STI). Taking over its place will be Mapletree Logistics Trust. With this latest development, I fear the worst for Golden Agri share price. In my previous article, I have mentioned that I am pretty bearish on Golden Agri share price in the medium term. This latest episode vindicated my point and also marked a sorry end to Golden Agri’s journey in the STI. StarHub and SIAEC were booted out of STI in 2018 and 2017 respectively. Since then, the share prices of the two companies had plunged to abysmal levels. On this basis, I don’t see how Golden Agri share price can fight its destiny. Included in the STI since September 2008, Golden Agri share price had been in the limelight fo

Dear readers, it was reported that Mapletree Logistics Trust has been added to the Straits Times Index with Golden Agriculture stock being removed in parallel from the index with effect… The post STRAITS TIMES INDEX (STI) STOCKS NEXT appeared first on SG STOCKS INVESTING.

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

Analysing Cache Logistics Trust is not easy. And it is not because of its business scale. In fact, with only 27 properties, Cache Logistics Trust is the smallest player among Ascendas REIT and Mapletree Logistics Trust. The difficulty in understanding Cache Logistics Trust is because the past two years had been such a whirlwind for this S-REIT that one wonders how on earth this S-REIT managed to stay the course till now. When debt-laden HNA Group acquired the previous Sponsor of Cache Logistics Trust (CWT Limited) in 2017, it was a sign of things to come. In 2018, CWT sold off all its stake in Cache Logistics Trust to the manager, ARA. Currently, ARA is the largest shareholder of this S-REIT, with stake amounting to 9.6%. With a market capitalization of merely $783 million, Cache Logistic

Crisis? What crisis? Mapletree Logistics Trust (MLT) rubbished all talks of market downturn as its unit price went on a rampant to smash a record high in July 2019. What a magnificent run! Christmas certainly come early for MLT as it went on a billion dollar shopping spree. Not that investors are complaining of course as the unit price rocketed to a stunning high of $1.65 on 5 July 2019. Subsequently, the unit price was brought down to earth to the current level of $1.60. Those who had bought MLT during its IPO in 2005 would have no regrets. Its public offer of 357.4 million units at $0.68 per unit was 43.88 times over-subscribed, reflecting the strong demand for the REIT. Over the years, the management had delivered the goods as the unit price of Mapletree Logistics Trust climbed steadily

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

In the first eight months of 2019, Singapore’s benchmark Straits Times Index (STI), comprising the 30 largest and most liquid stocks listed in Singapore, delivered a total return of 4.8%. During this period, Singapore’s 30 most actively traded stocks in the first eight months delivered a total return of 11.5%, or more than double the STI. The top 30 most actively traded stocks comprised 24 stocks from the STI, and six additional stocks: Mapletree Logistics Trust (MLT) Suntec REIT Mapletree Commercial Trust (MCT) Mapletree North Asia Commercial Trust (MNACT) AEM Holdings Mapletree Industrial Trust (MINT) The six STI stocks that were not part of the top 30 most actively traded stocks, included: UOL Group SATS Sembcorp Industries Golden Agri-Resources Dairy Farm International Holdings

Hutchison Port Holdings Trust (SGX: NS8U) will be booted out of the Straits Times Index (SGX: ^STI), Singapore’s stock market bellwether. Instead, Mapletree Commercial Trust (SGX: N2IU), owner of Singapore’s largest shopping mall VivoCity, will take its place. The changes will be applied after the market close on Friday, 20 September 2019 and will be effective come Monday, 23 September 2019. The index’s co-creators – Singapore Press Holdings Limited, Singapore Exchange Limited, and FTSE Russell – made the announcement yesterday after the stock market closed. The shuffling is part of the September quarterly review of the Straits Times Index (STI). Differing fortunes   Hutchison Port Holdings Trust has not been performing well financially over the pa

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

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