On Wednesday, Soilbuild Business Space REIT (SGX: SV3U) released its 2018 third quarter earnings update. As a quick introduction for better context later, Soilbuild Business Space REIT invests primarily in business parks and industrial properties in Singapore. The REIT’s portfolio in Singapore includes properties such as Solaris, West Park BizCentral, Eightrium @ Changi Business Park, and more. Here are nine things investors should know about Soilbuild Business Space REIT’s latest results: 1. Gross revenue for the reporting quarter declined by 3.6% year-on-year to S$19.8 million while net property income fell by 8.8% to S$16.2 million. 2. Similarly, distribution per unit (DPU) sank by 9.4% to 1.245 cents. 3. Based on Soilbuild Business Space REIT’s annualized DPU of 5.11 cents (fro

United Overseas Bank Price – $26.85 Target – $33.30 The Federal Open Market Committee (FOMC) raised the US federal funds rate (FFR) by 25 basis points (bps) on 26 Sep-2018, and indicated the possibility of another FFR hike in December with three more to follow next year. Historically, there is a positive correlation between FFR and 3-month SIBOR, which has also risen to an average of 1.63% in 3Q18 from 1.51% in the prior quarter representing a 12 bps q-o-q increment. This will help to widen the 3Q18 net interest margin for United Overseas Bank (UOB). Furthermore, healthy sales in recent property launches indicated that the Government’s property cooling measures in early July might have limited impact on mortgage growth. Meanwhile, UOB pressed on with its plans for a digital bank, whi

Since debuting in Singapore back in 2002, REITs have become popular investment vehicles for income hungry investors. Besides their consistent distribution payout, REITs also provide liquidity, exposure to real estate and the propensity for capital growth. However, REITs have their own set of risks. As REITs are highly leveraged securities, they can be affected by interest rate hikes. If a REIT is overstretched, it can result in liquidity issues, and negatively affect distribution and investor return. With that in mind, here are three REITs that have the highest debt-to-asset ratio right now. Soilbuild Business Space REIT (SGX: SV3U) invests primarily in business parks and industrial properties in Singapore. In its latest quarter, its headline numbers were disappointing, with net property

1. SPH Reit  --  10th Jul 20182. SPH  --  11th Jul 20183. Kep Reit  --  16th Jul 20184. Soilbuild REIT  --  16th Jul 20185. Kep DC Reit  --  17th Jul 20186. Kep Infra Trust  --  17th Jul 20187. Kep-KBS US Reit  --  17th Jul 20188. First Reit  --  17th Jul 20189. Kep T&T  --  18th Jul 201810. Capitaland Comm Trust  --  19th Jul 201811. Kep Corp  --  19th Jul 201812. SATS  --  19th Jul 201813. SIA Engg  --  19th Jul 201814. CapitaMall Trust  --  20th Jul 201815. Semb Mar  --  20th Jul 201816. Mapletreelog Trust  --  23rd Jul 201817. MapletreeInd Trust  --  24th Jul 201818. Ascott REIT  --  24th Jul 201819. Fras

Latest curbs could see developers lower prices up to 10% DEVELOPERS may trim prices of new launches by as much as 10 per cent from their earlier indications in response to the latest round of property cooling measures, with high-end homes likely to see bigger adjustments, analysts say. In downgrading their stock ratings across several developers, some have started pricing in a 5-10 per cent reduction in average selling prices (ASP) in their forecasts, though they note that it is too early for any developer to consider writedowns on their projects yet. Maybank Kim Eng property analyst Derrick Heng, who has priced in a 5-10 per cent ASP reduction in his projections, said: “While we expect a moderation in EBIT (earnings before interest and tax) margins to single digits for most projects

A new earnings season is underway. As is common with every earnings season, there will be some real estate investment trusts (REITs) posting growth, some REITs posting mixed numbers, and some REITs experiencing declines. So, which are the REITs that have recently delivered a weak set of results? Let’s look at two of them: 1. Two weeks ago, SPH REIT (SGX: SK6U) released its third quarter earnings update for its fiscal year ending 31 August 2018 (FY2018). The reporting period was for the three months ended 31 May 2018. As a quick introduction, SPH REIT is an owner of three retail malls in Singapore, namely, Paragon, The Clementi Mall, and The Rail Mall. During the reporting quarter, the REIT’s gross revenue declined by 2.9% year-on-year to S$51.8 million, while net property income fell