I used to be a unit-holder of Sabana REIT back in 2011. I recalled its unit price dropped after IPO (@ S$1.05 per unit) and then I started accumulating units for investment. Anyway, I held onto Sabana REIT for a short time due to its high dividend yield after the decline in price post IPO. But once I observed that the previous management seems to be having trouble getting new tenants and a potential cut-back in dividends, I got extremely worried and exited towards the end of 2012. But if one has been holding on to Sabana REIT since IPO, the total returns if inclusive of dividends is actually just a loss of less than 10% albeit the unit price dropping by more than half- so still not too bad. Since the end of March'21, I have started taking up a small investment stake into Sabana REIT despit

Learning to understand annual reports is the first step in starting our investment journey. After getting over the first hurdle of looking at numbers, we also need to take a step further and interpret their meaning. For most investors, this can be a daunting task as financial formulas and jargon can be less than intuitive. As with learning any new subject, the key to understanding is to be familiar with the relevant vocabulary. Apart from revenue, cost, and profit, here are 10 common financial jargons we wished someone explained to us when we were about to kickstart our investment journey. Read Also: Guide To Value Investing In Singapore #1 EBITDA: Earnings Before Interest, Tax, Depreciation And Amortisation How to calculate it: Take net profit and add back interest paid, taxes, depreciati

There have been much written about Capitaland split into a listed CLIM, an investment manager with an lodging arm. There is an 10% discount to the "offer price" of about $4.1. I think the 10% discount is an opportunity for me, as I see value in the new CLIM entity. This 10% is not an mispriced opportunity. The deal will only be closed by the end of the year, a lot could have happen. Also, it is not an cash offer, and the value if CICT could go up or down, making the deal sweeter or more sour. Hence, the 10% discount is justified. However, I took a longer term look at what would be the value of CLIM, and I believe it is not too shabby. The proposition for this deal is that valuation should improve, as investment managing business has NAV of 2.6, and yet CLIM is valued at NAV (1). I do

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 826.65 to 859.68 (+3.99%) compared to last month update. Currently the Singapore REIT index is still trading with a range between 816 and 874. As for now, Short term direction: Sideway. Immediate Support at 816, followed by 775. Immediate Resistance at 874. Previous chart on FTSE ST REIT index can be found in the last post Singapore REIT Fundamental Comparison Table on Mar 4, 2021. Fundamental Analysis of 40 Singapore REITs The following is the compilation of 40 Singapore REITs with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio. Note 1: The Financial Ratio are based on past data and there are lagging indicators. Note 2: This REI

The STI gained 7.3% in March, 11.3% for first quarter; Investors banked on an economic recovery gaining pace; US President Joe Biden’s US$1.9 trillion package played a big part; Equally important was a dovish Federal Reserve; Investors managed to shrug off inflation worries, rise in bond yields; Singapore’s industrial production rising; CapitaLand announced major restructuring. The STI posted its best 1Q performance since 2012 The Straits Times Index gained about 216 points or 7.3% to end March at 3,165.34 in tandem with several all-time highs on Wall Street. The STI’s first quarter gain was about 322 points or 11.3%, its best first quarter performance since 2012. Underpinning the rise were hopes that the global economy is slowly recovering from the COVID-19 pandemic and an assur

Singapore Press Holdings Limited (“SPH”) announces on 30 March 2021 that it is undergoing a strategic review to consider options for its various businesses as it believes firmly that it is undervalued by the market. Credit Suisse (Singapore) Limited had been appointed as its financial advisor for this purpose. This is coming straight on the heel of Capitaland. Scenario 1: SPH execute a same manoeuvre as Capitaland?So will SPH also do a segregation of its property development business in Woodleigh Residences and shopping mall from its property management business of REITs and Student Accommodation, just like CapitaLand (please see my previous post)? I think not likely as the property development is a relatively small division out of the entire businesses of SPH. In addition, person

The post KOPI with CapitaLand appeared first on Securities Investors Association (Singapore).

The talk of the week everywhere has been on the Capitaland restructuring plan. I am not sure why everyone is so excited by it but the fact that the Net Asset Value Per Share is around S$4.88 (if you exclude the one off fair valuation revaluation losses and impairment of S$2.49 billion due to COVID) while the offer is worth only S$4.01 says a lot about this deal which is not too fantastic in my personal opinion since there is still 20% off the intrinsic value mark once the economy recovers further. The additional risks here is also whether the deal will be approved by shareholders and whether the new Capitaland real estate investment management division is really worth its S$1 Net Asset Value, are the other main unknown factors. I have always been amazed by how those very clever corporate f

Slip in US Treasury yields and official comments underpin market’s strength; STI gained 23 points or 0.7% over the week at 3,157.95; Index is on course for its best 1Q gain since 2012; US 4Q GDP was revised up; Singapore’s industrial production rose 16.4% underpinned by electronics; CapitaLand to restructure; AEM in play after Intel announced plans to build new plants Fall in bond yields helps push stocks higher The 10-year US Treasury yield, which recently rose above 1.7% for the first time in 14 months, slipped last week to around 1.6%, thus helping keep Wall Street and most other equity markets firm as investors continued to bank on a global recovery from the COVID-19 pandemic. It ended Friday at 1.65%. Here, the Straits Times Index spend a firm week inching upwards, gaining mom

You should have heard the news by now that CapitaLand is going to spin-off its ... Read more >> The post CapitaLand’s Restructure – what does it mean for shareholders? first appeared on .

Dear readers, one of the most recent Singapore stock-related headlines is about the privatisation of... The post CAPITALAND STOCK, CAPITALAND INVESTMENT MANAGEMENT: PRIVATISATION WELCOME? appeared first on SINGAPORE STOCKS & PROPERTIES BLOG.

This actually did not catch my eyes today. After all, the portion of my SG stocks are my hedge against my US growth portfolio. It’s maxed out. However, JR_Chai asked me if I am writing a piece of article on this. This triggers some opinions in my head and I told him I will probably post them out tonight.Warning: This is an opinionated piece. Please do not proceed if you have a heavy weightage of SG Blue Chips in your portfolio.………Ok I already warned you.So what is “this” that I mentioned previously?This is the new proposal that Capitaland has put up today. As per CNA article, it states that “CapitaLand, majority-owned by Singapore state investor Temasek, announced on Monday (Mar 22) plans to split itself into two in a strategy aimed at pursuing growth as an asset-light c

The main attraction of Asia-Pacific (APAC) REITs as an asset class is the stable, sustainable payout of dividends to investors and its possibility for price appreciation. This assumption was challenged in early 2020 as the global outbreak of the COVID-19 pandemic roiled real estate markets across the globe, leading many to question the asset class’s predictable market history and the viability of dividend payouts. Since the impact of the pandemic, many segments of APAC REITs have gradually recovered from the economic shock as governments and central banks helped stabilise the real estate sector with monetary and fiscal policy measures. Progressing into 2021, we will look at the key tailwinds, structural and emerging trends unfolding for the asset class. Here are 8 things every APA

The year 2020 was full of surprises. COVID-19 was one of them. It is depressing to describe the ordeal that many of us went through over the past year but the pandemic has fundamentally changed the way we live. Most of us are still working from home by default which makes office assets look redundant. Tourists are a rare sight nowadays as most international flights are still grounded and hotels are struggling to fill their rooms. City malls are also scrambling to bring shopper traffic back as they used to depend on office workers and tourists for footfall in the past. On the other hand, industrial properties like logistics and data centre assets have performed really well in the post-pandemic world. More people are shopping online and it has naturally led to increased demand for war

The STI gained 1.6% for Feb at 2,949.04; Optimism came from vaccine news, pessimism from higher bond yields; Wall St’s all-time highs on Wed were erased by fears of rising rates; Wilmar announced record dividend; Sembmarine hopeful that worst of writedowns is over; CapitaLand reported first-ever loss; OCBC and UOB reported lower 4Q profits; Writedowns for Sincere Property dragged CDL into the red. Opposing forces set the direction As the month of February unfolded it became apparent that direction would be set by two opposing forces. On the upside was optimism surrounding vaccine rollouts and development, whilst on the downside was pressure from rising bond yields that came because of an improving economic outlook – although the 10-year US Treasury yield was down 6 basis points at

Frasers Centrepoint Trust (FCT) is a SGX-listed real estate investment trust that owns retail malls located in the suburban regions of Singapore. FCT’s portfolio of properties comprises 11 retail malls and an office building with worth approximately a total of S$6.7 billion. The retail malls are Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Changi City Point, Waterway Point (40% interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1. 2020 was indeed a challenging year for REITs, with retail REITs being the worst hit sector globally as the COVID-19 pandemic brought about national lockdowns and social distancing. FCT was not spared from the crisis, as people and businesses in Singapore were

2020 was a precarious year for property owners. Globally, travel has grinded to a halt, impacting hospitality properties. Even Retail, office and industrial properties have been affected to varying degrees, given the strict COVID-19 management measures. 2020 also feels like the harbinger of the new normal – accelerating trends to an extreme level. We already knew work-from-home was on the rise, online shopping growth was outpacing sales in brick-and-mortar stores, food delivery services were taking over F&B outlets and more. For REIT owners, distribution income was affected due to various countries implementing some form of cost sharing initiatives as shutdowns and “circuit breakers” we enforced. More than that, REIT investors also have to consider the longer term impacts of COVI

Orchard Road is home to familiar names such as Takashimaya, Paragon, Plaza Singapura, 313@Somerset. But with S-REITs, you can invest in a part of Singapore’s largest retail district. Orchard Road during the holiday season, where Christmas decorations are in full swing. Photo: visitsingapore Retail is not the only REIT sector along Orchard Road. Despite mostly having a Retail REIT presence, there are also several other REIT sectors, such as hospitality and office REITs in the vicinity. Below are some of the REITs found in Orchard Road, with a handy diagram on where they are located within the shopping district. Property valuation figures are accessed via the REIT’s website as of 5th Februrary 2021.   Retail/Integrated Developments Located next to Dhoby Ghaut MRT,

The STI was up 2% for the month; All of the gains came in first two weeks when index rose 6%; Drag came from Wall Street’s second half selloff; US Fed chief last week delivered sobering reminder of task ahead; Retail hordes blamed for increased volatility, experts cite GameStop; Keppel to exit rig building, pivots to clean energy; CapitaLand warned of a full-year loss. STI gained 2% over the month January proved to be a month of two halves – in the first two weeks it was the bulls who prevailed, propelling the Straits Times Index to above the 3,000 market at its highest closing for the month 3,004.87 on the 15th, only for the bears to then take over, bringing the index down to its latest close of 2,902.52 on Friday. At its intra-monthly peak, the index had gained 161 points or 5.7%

Disclaimer: This post is only intended for informational and discussion purposes and should not be taken as financial advice. I am merely sharing my rationale for buying GL Limited shares, and may acquire more shares and/or divest my positions without updating this article. Please do your own due diligence and/or consult a licensed financial advisor before dealing with shares in GL Limited. Overview On 15th Jan 2021, GL Limited announced a voluntary conditional general offer from GuocoLeisure Holdings Limited, at an offer price of $0.70 per share. GL Limited is a company that operates in the hospitality, oil & gas, and property development segments. Following the announcement, analysts from Lim & Tan Securities have suggested that GL Limited could be worth as much as $1.16, a