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Singapore REIT Price / NAV Range Chart Nov-2018

Click on Singapore REIT Price / NAV Range Chart Nov-2018
for the source.
Author: Marubozu

Original post from http://mystocksinvesting.com

Singapore REIT Price / NAV Range Chart base on Nov 5, 2018 Singapore REITs Table.

See last Singapore REITs Price/NAV here to see the changes.

Disclaimer: This chart is NOT a recommendation to buy or sell. Do NOT use it if you don’t understand how to interpret it.

 

I have some free time in Nov & Dec because I am not conducting any REIT class or investment seminars in these two months. I will offer compliment Investment Portfolio Review for 5 of my blog readers (First come first served). You can send me your request to marubozu@mystocksinvesting.com with the following 4 information:

(1) Your Risk Profile (Conservative, Moderate or Aggressive)

(2) Your Investment Objective & What do you want to achieve (e.g. $2000 per month passive income,  5% p.a. capital gain, etc)

(3) Your Investment Time Horizon

(4) Your Investment Statement (e.g. unit trust holding, CDP statement, etc)

 

Based on the above information, I will give you my view on:

(1) Whether your current investment portfolio  is suitable to you

(2) Risk Assessment of your current portfolio

 

 

Safe Investing!

Marubozu

 

 

 

 

Check below on other events:

http://mystocksinvesting.com/course/singapore-reits-investing/REITs Investing Course 

http://mystocksinvesting.com/course/private-portfolio-review/REITs Portfolio Advisory 

http://mystocksinvesting.com/events/

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Shariah Compliant Singapore REIT for Muslim Investors

Click on Shariah Compliant Singapore REIT for Muslim Investors
for the source.
Author: Marubozu

There are 9 REIT in Singapore with a combined market capitalisation of S$11.2 billion are included in the newly launched FTSE ST Singapore Shariah Index.  The property assets of the REITs, span industrial, e-commerce, commercial and retail space. The nine REITs average an indicative distribution yield of 7.57%.

The FTSE SGX Shariah Index Series, launched by FTSE Group and the Singapore Exchange (SGX), reflects the stock performance of companies in the Asia Pacific region whose business activities comply with Islamic Shariah Law. The FTSE SGX Asia Shariah 100 Index is the first in the series to be launched. Independent screening is carried out by Yasaar Ltd, an organisation with a global network of expert Shariah scholars. The screening approach is described below.

Business Activity Screening

Initially, companies involved in any of the following activities will be filtered out as non-Shariah compliant:

  • Conventional finance (non-Islamic banking, finance and insurance, etc.)
  • Alcohol
  • Pork-related products and non-halal food production, packaging and processing or any other activity related to pork and non-halal food
  • Entertainment (casinos, gambling and pornography)
  • Tobacco; weapons, arms and defence manufacturing.

Financial Ratios Screening

The remaining companies are then further screened on a financial basis. The following financial ratios must be met for companies to be considered Shariah-compliant:

  • Debt is less than 33.333% of total assets
  • Cash and interest bearing items are less than 33.333% of total assets
  • Accounts receivable and cash are less than 50% of total assets
  • Total interest and non compliant activities income should not exceed 5% of total revenue.

More details on procedures for when companies that change financial compliance between two successive quarters in addition to the appropriate purification of dividends can be found here.

About Yasaar Limited

Yasaar Limited scholars represent all of the major Shariah schools of thought, creating a best practices approach that has credibility across the Islamic world. More information on Yasaar Limited is provided below or visit their website. For further details on the Shariah screening methodology, please refer to the FTSE Shariah Global Equity Index Series Ground Rules which are available here.

 

 

If you would like to build a Shariah Compliant REIT portfolio for passive income, you may contact marubozu@mystocksinvesting.com for more more detail (advisory fee applied).

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Singapore REIT Fundamental Analysis Comparison Table – 5 Nov 2018

Click on Singapore REIT Fundamental Analysis Comparison Table – 5 Nov 2018
for the source.
Author: Marubozu

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 802.97 to 761.61 (-5.15%) as compared to last post on Singapore REIT Fundamental Comparison Table on Oct 1, 2018.  The REIT index broke down from a Symmetrical Triangle, a consolidated pattern, to continue the bearish down trend with minimum index target of 740.

Currently the index is trading in a very bearish mode with all 3 moving averages are trending down. More down side is expected although the FTSE ST REIT Index has dropped close to 13% from the peak. Based on the chart pattern and trend analysis, Short, Medium and Long Term trend for Singapore REIT direction is DOWN!

Fundamental Analysis

  • Price/NAV decreases from 0.99 to 0.93 (Singapore Overall REIT sector is under value now).
  • Distribution Yield increases from 6.77% to 7.16% (take note that this is lagging number). About 46% of Singapore REITs (18 out of 39) have Distribution Yield > 7%.
  • Gearing Ratio reduces slightly from 34.6% to 34.5%.  20 out of 39 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy.
  • Most overvalue REIT is Parkway Life (Price/NAV = 1.53), followed by Keppel DC REIT (Price/NAV = 1.31), Ascendas REIT (Price/NAV = 1.23) and Mapletree Industrial Trust (Price/NAV = 1.26).
  • Most undervalue (base on NAV) is OUE Comm REIT (Price/NAV = 0.51), followed by Fortune REIT (Price/NAV = 0.58), Keppel KBS US REIT (Price/NAV=0.64),  Starhill Global REIT (Price/NAV = 0.76), Far East Hospitality Trust (Price/NAV = 0.72),  and EC World REIT (Price/NAV = 0.74).
  • Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (12.13%), followed by Keppel KBS US REIT  (10.67%), OUE Comm REIT (9.61%), Sasseur REIT (9.02%), SoilBuild  BizREIT (8.99%), Cromwell European REIT (8.59%), EC World REIT (8.73%) and Cache Logistic Trust (8.82%).
  • Highest Gearing Ratio are Far East HTrust (40.3%) and OUE Comm REIT (40.3%).
  • Note: VIVA Industrial Trust is removed as the trust is merged into ESR REIT.

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.

  • 1 month increases from 1.51200% to 1.51592%
  • 3 month increases from 1.63740% to 1.64286%
  • 6 month increases from 1.75300% to 1.75705%
  • 12 month increases from 1.96141% to 1.96875%

The FTSE ST REIT index is selling down in anticipating the coming Dec rate hike to 2.5%.   The current probability of interest rate hike to 2.5% is 68.8%, dropped from 74.4% compared to previous month.

 

Summary

Fundamentally the whole Singapore REITs is under value now.  Overall yield for Singapore REIT is getting attractive (average yield of 7.16%). The last time we have seen Price/NAV = 0.93 and Distribution Yield of more than 7% is back to Dec 2015. Compared to the Singapore REIT Fundamental Comparison Table in Dec 2015 to see the similarity and you should be able to identify some attractive opportunities.

 

Yield spread (reference to 10 year Singapore government bond) has widened from 4.238%  to 4.654%.  DPU yield for a number of small and mid cap REITs are very attractive  (>8%) at the moment.  Some big cap REITs are also getting attractive in terms of valuation and yield.

 

Technically, the REIT index is trading on the down trend and there is no sight of bottoming yet. It is expected more down side for big cap REIT as the FTSE ST REIT index is heavily weighted on the big cap REIT. However,  the risk premium is very attractive for small and medium cap REITs now. Investors can do some selective shopping when the down trend stop for those REITs.

If you can find any REITs which are under value, high distribution yield with consistent growth in DPU, limited down side based on the chart, what are you waiting for? Get your shopping list ready for early Christmas present!

 

Happy Investing!

 

See all other relevant  Singapore REITs blog posts here.

If you need an independent professional review on your current REIT portfolio and need any recommendation, you may engage me in the REIT portfolio Advisory. REITs Portfolio Advisory.  http://mystocksinvesting.com/course/private-portfolio-review/

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Singapore REIT is fighting for Life!

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for the source.
Author: Marubozu

Singapore REIT sector is fighting for life to stay above the resistance turned support zone between 770-775. Breaking down this support zone will continue the bearish slide. Next support is at 740.

 

Sit really really tight!

 

 

 

If you need an independent professional review on your current REIT portfolio and need any recommendation, you may engage me in the REIT portfolio Advisory. REITs Portfolio Advisory.  http://mystocksinvesting.com/course/private-portfolio-review/

Why Owning A Simple Family Car In Singapore Can Cost You SGD 234,621 Over 10 Years

Click on Why Owning A Simple Family Car In Singapore Can Cost You SGD 234,621 Over 10 Years
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Are you looking to BTO soon and you’re worried about how much to spend on your engagement ring? There are important questions that many avoid at this point: what if your engagement doesn’t work out last minute? What if either of you has cold feet at that point in time? You may worry about her […]

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I posted this question on the BIGS and Seedly Facebook Groups recently and received quite a response. I guess this is an issue that matters to many. To be fair, this was a loaded question. We had some respondents who took a step back to think about what I was trying to get at. The […]
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Singapore REIT Bubble Charts Oct 2018

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for the source.
Author: Marubozu

Bubble charts derived from Oct 1, 2018 Singapore REITs Fundamental Comparison Table. Two observations compared to last Bubble Charts.

(1) There are slight shifting of the Price/NAV to the left. This indicates some REITs are getting cheap based on valuation.

(2) There are no big changes in term of gearing.

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Two visual bubble charts to pick and avoid:

  1. Undervalue Singapore REITs with High Distribution Yield** (Value Pick)
  2. Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

** Distribution Yield are lagging.

Compared to previous Singapore REIT Bubble Charts here.

 

Disclaimer: The analysis is for Author own use and NOT to be used as Buy / Sell recommendation. Get a proper training on “How to use this Singapore REIT Bubble Charts?” here.