Real Estate Investment Trusts (REITs) are a favourite investment for Singapore investors. This is primarily due to its property-heavy investments and relatively high distribution yields. REITs Share Price Performance In 1st Half 2019 The first aspect of figuring out how REITs have done in the first half of 2019 is to look at how its share price has moved in the year-to-date (ytd) 2019. The chart below shows the price movements of the SGX S-REIT 20 Index, comprising the top 20 REITs listed in Singapore. As we can see, its share price has increased 10.3% since the start of the year, to 1337.3. However, looking at the past quarter, prices does look like it has taken a slight dip. Source: ShareInvestor In general, REITs have had a strong performance, in terms of just price appreciation, in th

1. SPH REIT  --  5th Apr 20192. SPH  --  9th Apr 20193. First REIT  --  10th Apr 20194. Kep Infra Trust  --  15th Apr 20195. Kep DC Reit  --  15th Apr 20196. Kep-KBS US Reit  --  16th Apr 20197. Kep Reit  --  17th Apr 20198. Soilbuild REIT  --  17th Apr 20199. Kep Corp  --  18th Apr 201910. CapitaComm Trust  --  18th Apr 201911. MapletreeInd Trust  --  22nd Apr 201912. MapletreeCom Trust  --  23rd Apr 201913. FrasersCom Trust  --  23rd Apr 201914. Suntec Reit  --  24th Apr 201915. CapitaMall Trust -- 24th Apr 201916. Frasers Cpt Trust  --  24th Apr 201917. CapitaR China Trust  --  24th Apr 201918. SGX  --  25th Apr 201919.

Here are a few key points from Soilbuild Business Space REIT’s (SGX: SV3U) latest result announcement.

In Dec 2017, Chinese conglomerate HNA Group acquired all shares of CWT Ltd to successfully acquire CWT for S$1.399 bil. Since they were acquired, CWT has been combined with other assets and listed as CWT International and subsequently listed in HK. Yesterday, CWT International said it defaulted on a S$179mil loan and it has less than 24 hours to pay the funds or lose assets pledged as collateral. They have not paid accrued interest and fees worth HK$63 mil to lenders. The lenders will take possession of the assets if the amount due is not paid by 9 AM on Wednesday. The assets that are pledged under the loan facility includes CWT International’s 100% stake in Singapore based CWT Pte Ltd. Aside from this, CWT have 2 bonds outstanding. One of the bond matures in 18 April 2019 (like toda

Soilbuild Business Space REIT is an industrial REIT that currently owns three business park properties and ten industrial properties, located in both Singapore and Australia. As of December 2018, the REIT has a net lettable area of 4.03 million square feet, leasing its properties out to a total of 115 tenants. Based on Soilbuild REIT’s current stock price of 62 cents and its 2018 distribution of 5.28 cents, Soilbuild REIT is rewarding unitholders with an impressive 8.6% yield — the highest among Singapore industrial REITs. At the same time, Soilbuild REIT is trading within 10% of its historical lows. In light of these facts, I attended Soilbuild REIT’s AGM to find out whether the stock is an undervalued gem, or simply a value trap. Here are eight things I learned from th

When a long term tenant of your property decides to leave, this might create a problem for the landlord.  In some cases, your tenants go bankrupt halfway through the lease and could not pay the rent, despite that there is a contractual obligations to do that.  You would have the headache of trying to find new tenants for the property.  And if you cannot find one, you do not get any rent for the vacant period. These are some of the trials and tribulations if the company you are invested in, decides to acquire a property in a sale and leaseback arrangement.  In such an arrangement, the seller decides to sell to a buyer their property they owned. The seller then decides to lease back the premises from the buyer for a duration of time.  The seller is able to

The US Federal Reserve has indicated that 2019 will likely see slower interest rate hikes. This comes on the back of mounting macroeconomic uncertainties, that has seen investors turn to less risky investments. This may benefit REITs in three ways: # 1 Traditionally, REITs take on a lot of debt to fund its capital-intensive property investments. Slower interest rate hikes in 2019 will ease the growing pressure on REITs, in terms of debt repayment. # 2 Markets are efficient – which means that prices of REITs would have taken into consideration that rate hikes would continue as normal. This stance of slowing down the interest rate hikes in 2019 is new information for the market, and may give REITs a boost. (Do note that most of this new information should already be priced into the markets

Following my last article which I wrote on Ireit Global, there’s been a good amount of discussion from readers regarding the concern on tenant concentration that surrounds Ireit’s leasing activity over the past couple of years. I am here to provide my own thoughts based on my working knowledge and a good balance discussion of both the advantages and disadvantages which I see and will use several case studies on it.The tenant concentration concern has been brought up several times during the AGM and the management has also taken steps to abate the concern when they bought the Berlin property in order to “diversify” their tenets of tenants spread across their 5 portfolios. But there's more to that reason alone.Here are my further thoughts:1.) David vs Goliath Ireit Glo

Current Price on 21st Jan 2019 = $0.605Yield = 9.59%  Price-to-book Ratio = 0.961Assets per unit = $1.176Debt per unit = $0.547 (including current liabilities and perp securities)Gearing = 46.5%Secured NAV = $0.629 (104% of trading price)Soilbuild REIT has published their results which has given me pleasant surprises. Let's take a look at the statistics.The yield has increased to 9.59% which is very high, probably the highest in the market right now. Moreover, their price to book ratio is at 0.961 which means we are still buying at a discount although it is a small one. Gearing is at a high of 46.5% only because I have placed perpetual securities under debts instead of equity. It is still high so the risk is there.It is a pleasant surprise because it is not easy to get such a yie