Cromwell European Real Estate Investment Trust (SGX: CNNU) reported a strong set of results in the first half of 2019. Its 2019 first-half adjusted distribution per unit (DPU) increased 3% from a year ago and was 4.6% higher than the forecast in its initial public offering prospectus.  Here are three reasons why its DPU may rise further. Yield-accretive acquisitions The REIT, which is backed by Australian listed property giant Cromwell Group (ASX: CMW), has been aggressively making yield-accretive acquisitions. The REIT ended the first half of 2019 with 97 properties. Since then, it has purchased another five properties, bringing its portfolio up to 102 properties. The acquisitions, which were funded by a mix of equity raised through a private placement, and debt, are expected

City Developments Limited (SGX: C09), or CDL, is a real estate company listed on the Singapore market that has a presence in 28 countries and regions. Its business segments within the real estate market include property development, hotel operations, rental properties, and others. In the last six months though, CDL’s stock price has swooned by 7%. Let’s have a quick look at some of its key earnings from its half-year report to understand if the decline makes sense. Muted financials Let’s start with some numbers. For the quarter ended 30 June 2019, CDL reported a 26.4% decline in net profit to S$162.4 million. This decline in earnings was largely due to the timing of profits which can only be recognised upon project completion and not progressively. This leads to lum

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) broke out from the 10 years resistance at 875 with significant increase in trading volume. The REIT index is currently retracing from the high 941.77 to  895.14 (-4.95%). Next immediate support zone is between 870 to 875 for a healthy correction.  Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on July 1, 2019. Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP. The recent selling can be a healthy correction before the REIT index can move higher.   Fundamental Analysis of 42 Singapore REITs The following is the compila

Here are five metrics used to pick Singapore’s strongest REITs including Parkway Life REIT (SGX: C2PU), Keppel DC REIT (SGX: AJBU), and IREIT Global (SGX: UD1U).

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) broke out from the 10 years resistance at 875 with significant increase in trading volume. The REIT index increased from 858.67 to 916.95 (+6.78%) and  as compared to last post on Singapore REIT Fundamental Comparison Table on June 3, 2019. The REIT index is entering in an uncharted territory after breaking new high and may head towards to 1000 points based on projection of 161.8% Fibonacci level. Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP. However, the REIT index may go for a short term pause before moving higher.   Fundamental Analysis of 39 Singapore REITs The following i

There has been a few placements, non-renounceable rights issues and acquisitions by REITs that I cannot get through all (well by my own standards). But I thought I will just do the Cromwell European REIT one.  After the burnout work in the office in the past 2 weeks, I really do not feel like doing anything.  So this one will probably be a short one.  I have not do much homework on Cromwell, so decide to treat this as a relaxing homework of mine.  Cromwell European REIT will be purchasing  3 Freehold French Office Buildings in Greater Paris 2 Freehold Office buildings in Krakow, Poland 1 Freehold Office building in Poznan, Poland   The numbers look good, particularly impress with the kind of net initial yield that they can still garner in the market li

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) changed from 869.49  to 858.67 (-1.24%) as compared to last post on Singapore REIT Fundamental Comparison Table on May 5, 2019. The REIT index is currently facing immediate resistance of 875 (the previous high in 2018) and trading within a falling wedge consolidation range between 848 to 870.  Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is still UP with a pause. All eyes will be focusing on whether the REIT index can break the 2018 high (875) and 2013 high (892) back in May 2013. Another scenario would be a break down of the 848 immediate support and we will see a larger correction of REIT

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

City Developments Limited (SGX: C09) has invested in IREIT Global (SGX: UD1U). Here are three things to know about the REIT.

At the end of April, City REIT Management, a subsidiary of City Development Ltd (CDL) purchase 50% of IREIT’s manager. City Strategic, also a subsidiary of CDL, purchase a substantial stake in IREIT itself. In November 2016, Tikehau Capital purchased a 80% stake in IReit’s manager. The rest of the stake is held by Chinese Tycoon Tong Jinquan and Soilbuild founder Lim Chap Huat. Tong Jinquan owns 297 mil units (47%), Chap Huat owns 33 mil units (5.2%), Tikehau Capital owns 52.6 mil (8.3%). In this deal, Tikehau Investment Asia Pacific bought back Tong’s stake in the manager. They then sold half the stake in the manager to City Reit Management, which is CDL’s arm in doing reit management. Now, Tikehau and City Reit owns roughly 50% each in the manager. Then, Tika

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) continued the bullish rally raising from 866.27 to 869.49 (+0.37%) as compared to last post on Singapore REIT Fundamental Comparison Table on April 1, 2019. The REIT index continues to trade upward in the uptrend and currently getting very near to the immediate resistance of 875 (the previous high in 2018) after the recent minor correction which was supported by the 50D SMA.  Based on the current chart pattern and and momentum,  the sentiment is BULLISH and the trend for Singapore REIT direction is UP. All eyes will be focusing on whether the REIT index can break the 2018 high (875) and 2013 high (892) back in May 2013. We shall see whether the following fundamental REI

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