Ascendas Reit Archives

In developed countries, you will see a mature healthcare industry and a growing healthcare REIT industry. The recovery to pre-Covid level by 2022 is still unlikely as flights and passengers are likely to remain limited while international travel should remain controlled. The STI’s heavyweights, Singapore banks (Oversea-Chinese Banking Corp Ltd , DBS Group Holdings Ltd, United Overseas Bank Limited , collectively around 34% of STI), are among the top companies in terms of profit growth for the 2Q21. Most companies managed to beat earnings’ estimates and on aggregate, Straits Times Index’s earnings grew 93% YoY in the second quarter , fuelled by a mixture of organic growth and base effect. AFTER a steep decline in corporate earnings last year (-41% year-on-year ), earnings per share of Singapore equities have started to improve.

Real estate investment trusts in Asia-Pacific saw healthy returns in 2019, outperforming equities in the region. Fund managers expect this asset class to remain attractive this year, citing its growth in the currently low interest rate market environment. Mapletree is one of the major players in the Singapore REIT space, managing S$55.7 billion worth of office, retail, logistics, industrial, residential and lodging assets as at March 31, 2019.

Rents for warehouses and business parks eased slightly by 1.3% and 1.1% respectively in 2020, while rents for multiple-user factory space retreated by 1.8%. Meanwhile, Dr Lee reckons business parks may benefit should firms with offices in the CBD relocate, lured by the prospect of lower rents. Older business parks, however, which may not be be a good fit for such companies, may see downward pressure on their rents. “Significantly, Singapore REITs also look attractive when comparing current dividend yields to bond yields with a gap of 3.84%,” say Credit Suisse lead analyst Sakthi Siva in a Wednesday report.

The report also describes data centres as a rapidly growing segment due to the rapidly rising demand for network services and a shortage of infrastructure. It highlights China as the fastest-growing prospect because of massive demand from internet companies such as Alibaba Group Holding Ltd, Tencent Holdings Ltd and Baidu Inc. Fund managers say pockets of opportunities can be found in the regional REIT sector, particularly in the office, logistics and healthcare segments. Manulife’s Chong believes that the emergence of 5G will help boost the overall earnings of the REIT industry in Asia-Pacific. In this category, some funds — such as the AmAsia Pacific REIT Class B Fund — are pure REIT funds, with the majority of their holdings comprising REITs in Asia-Pacific. Some funds invest in other asset classes as well, such as the RHB Asian Real Estate Fund, which holds both REITs and other real estate securities.

As at end-December last year, several local real estate investment trust funds that focus on investments in Asia-Pacific had a few holdings in common. These included Singapore-based CapitaLand Ltd and Mapletree Investments Pte Ltd. Hong-Kong-based Link REIT also featured as one of the top holdings of some funds. Innovative real estate investment trust structures in more developed markets such as the US can serve as an indication of what Asian investors can look forward to in the future. The US is a good reference point as its REIT market is far the largest in the world with a market capitalisation of US$1.05 trillion in 2018, according to EY’s Global REIT Market Report.

CapitaLand Mall Trust and CapitaLand Commercial Trust were already enormous to begin with, with a market capitalisation of more than S$9 billion and S$8 billion respectively before the merger. According to CBRE, leasing for business parks was more muted in Q1 2021, with business park rents in the city fringe and the rest of the island retreating 0.9 per cent q-o-q to S$5.75 psf/month and 1.4 per cent q-o-q to S$3.65 psf/month respectively. Pandemic-linked construction delays have put the supply pipeline for this year at 1.4 million square feet, which may place some pressure on rents, CBRE added. On the other hand, with safe-distancing measures in place, retail rents sank by a sharper 14.7 per cent in 2020, while office rents contracted by 8.5 per cent as many employees worked from home for the better part of the year.

“The Singapore FTSE REIT Index was up 23% in November 2019 while Australia REITs returned 25% during the same period. However, Hong Kong REITs underperformed, posting a return of just 4%, weighed down the protests in the city,” says Khoo. The views expressed are of the research team and do not necessarily reflect the stand of the newspaper’s owners and editorial board. Given the possibility of controlled international travel, foreign tourist count is unlikely to swing back to pre-Covid level which may cap earnings. Unlike the aviation sector, Genting is able to fall back on the domestic market for its gaming operations.

Maintain HOLD recommendation given the impending 2nd tranche of placement which we anticipate in 2H18 despite the weakness in share price. United Engineers , a property development and engineering company, added 0.6% to $1.75. Star Cruises , Asia’s biggest cruise operator, gained 5.1% to 20.5 U.S. cents. The company said its unit NCL Corp. posted a net income of US$15.4 million (S$22.3 million) in the second quarter, compared with a loss of US$27 million a year ago. If you spot an error that warrants correction, please contact the editor at editorial- This article by Simply Wall St is general in nature.

Additionally, earnings drivers are also materialising in terms of i) steady growth in Singapore’s residential market, , and ii) a recovery in rental income and property revaluation gains. Data compiled by The Business Times shows the acquirer’s (or combined entity’s) share price and total returns for most of the five successful Reit mergers disappointing over time. EdgeProp.my is Malaysia’s most useful property website for home buyers and investors. At EdgeProp.my, you can find daily breaking news on property, and hundreds of thousands of properties for sale and rent with detailed information such as past transacted prices, maps and photos. We offer a full collection of the most popular property types in the market – condominiums and apartments, landed properties, residential land and commercial properties.

“If revenue enhancement and cost savings are not coming through, there’s really no compelling reason for a merger,” he said. ESR-Reit’s unit price had remained subdued despite the run-up in industrial Reits last year, possibly because of the drama with the foiled acquisition of Sabana Shari’ah Compliant Reit. This should not be surprising as operations affected by Covid-19 would have pressured distributions, and some managers also made the choice to hold back some distributions to better manage their cash flow.

Is most likely due to the demand of this stock and nobody is interested due to whatever reason which we may or may not know. @lotuseater…I will wait patiently and dont cry when it reach RM6 as anything can happened in stock market. The company said profit in the second-quarter slumped 60% to 47.2 million yuan ($$10 million) compared with the year before. KUALA LUMPUR, Feb 3 — Malaysia today recorded an additional 5,720 new Covid-19 cases, health director-general Tan Sri Dr Noor Hisham Abdullah said. Download this topic in different formats or view a printer friendly version. I have made a portfolio of your stock in Stockscafe for monitoring purposes.

For developers, we expect robust earnings growth this year, largely due to the low-base effect. The Fed rate may shift higher by late-2022 , thus bank earnings may see reinforced support beyond the next one to two years. We are also cognisant of a potential shift in the US Federal Reserve’s rate cycle, which in turn can drive the banks’ earnings. GGmalaysia, you are right but we cannot think logically in investing.Investing is an ‘Art’.Eg. Some odd drawing may be valued a few millions while some good drawing just valued at a few hundreds.

This debunks the “bigger is better” adage that investors have been led to believe since the first Reit merger – between ESR-Reit and Viva Industrial Trust – was completed in October 2018. “Stock prices could easily overshoot previous troughs if the sell-off in bonds proves to be more severe than anticipated,” says Siva. The Forbes article paints a positive outlook for the prison REIT industry, saying that all US prisons are currently operating at more than 100% capacity and outsourcing to prison REITs serves as a valuable place setting for state governments.

AHAM’s Khoo says investors should not invest in REITs based on sector or country alone, but should also take into account the demand and supply dynamics. Assume that in a Singaporean office REIT, there are tenants that have signed leases of two to three years but the rental rate they are paying is actually below the current market rate. “Based on our fund’s performance in 1H2019, Singapore REITs recorded a growth of 20%, Hong Kong, 12.3% and Australia, 9.4%. In terms of sectors, industrial REITs saw a growth of 23%, office REITs, 16.9% and healthcare REITs, 16.42%,” says Manulife’s Chong.

At press time, the prison REIT sector only consisted of two publicly traded counters — CoreCivic Inc and GEO Group Inc, which have a combined market capitalisation of US$3.78 billion. According to an article in Forbes magazine, Geo Group and CoreCivic are providing healthy yields of 13.5% and 11.4% per annum respectively. “As more people develop e-commerce platforms, they will need offices to house these new companies. Regardless of the type of e-commerce business, physical infrastructure will still be needed to support it. “To allow for the fast speeds of 5G, telecommunications companies will need to set up base stations to provide coverage.

Anecdotally, Singaporean REITs tapped equity markets of more than S$6 billion last year to fund the acquisitions of assets,” he says. Perhaps besides the usual merger terms and advantages, Reit managers should consider including details of how exactly they plan to derive the purported cost savings and synergistic benefits post-merger. In terms of total returns, of the four, CICT has generated a positive 15.6 per cent since its merger was completed, while the rest continue to generate negative returns.

It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. The next runner was consumer services that including leisure and hospitality, GENTING and GENTING MALAYSIA are one of them, I invest this as I think this is undervalued at the point of time, it will recover skyrocketed once the travel ban is lifted. OUE Commercial Reit acquired OUE Hospitality Trust and its hotel assets such as Mandarin Orchard Singapore and Crowne Plaza Changi Airport, and its fate is tied to the hospitality industry which is affected by Covid-19.

AmInvest’s Wong says in the industrial space, logistics warehouses are well taken up due to the growth of e-commerce as well as the drive for corporates to streamline their supply chains through the occupation of more modern and efficient facilities. “The long-term prospects for data centres are structurally positive, which is attributable to the intensification in digitisation. The construction of commercial developments has been more measured since the global financial crisis, leading to a regional-wide situation where new supply coming onstream is well absorbed tenants. ONE plus one has been less than two for most Singapore real estate investment trust (S-Reit) mergers, despite the promises of synergistic benefits and cost savings managers have dangled before unitholders when rallying them to vote for such deals. In a research report published last month, DBS Bank notes that Link REIT’s earnings will remain resilient across economic cycles as the bulk of rental income derived from tenants selling consumer staples in Hong Kong. The REIT’s suburban retail properties have been less affected disruptions due to the protest movement in the city compared with landmark shopping malls, making it a safer bet in a shaky market.