Here’s What You Should Know About Financial Bloggers’ $100,000 Net Worth

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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Alvin Chow

Financial bloggers are an admired bunch, especially those who showcase their inspiring net worth achievements:  How I Managed to Amass $750K Before the Age of 35: Real Life Lessons from Brian – YahooFinance How We Saved $250,000 By Age 28 – 15HWW Hitting $100,000 In Savings by Age 26 – SG Budget Babe How to […]

Jumbo vs ABR vs RE&S: Which Resturant Stocks Is The Most Appealing

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Jumbo vs ABR vs RE&S: Which Resturant Stocks Is The Most Appealing


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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: James Yeo

I used to be a foodie jumping from cafe to cafe – known as cafe-hopping – when I was young. However, as I stepped into the workforce and started a family, I literally had no more time for that. Instead, I now patronise different kinds of restaurants situated in various shopping malls. Although I missed the leisure […]
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1st Year Yield of Singapore Saving Bond Hit 2%!

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Author: Marubozu

This is the first time 1st year yield of Singapore Saving Bonds (SSB) hit 2%, for GX19010T.

 

I use Singapore Saving Bonds as the parking facility for my emergency fund. Emergency fund is one of an important aspect in personal financial planning.

Advantage of Singapore Saving Bonds as Emergency Fund Parking Facility

  1. Guaranteed by Singapore government with AAA credit rating
  2. Virtually zero risk and arguably safer than putting your money in saving accounts of any banks.
  3. No price volatility.
  4. 1 month redemption period with no penalty.
  5. No lock in period.
  6. You can keep your money in SSB and interest rate will automatic increase year over year.
  7. Interest payout every 6 months.
  8. Starting amount as low as $500

You can check out this Singapore Saving Bond website for more detail.

 

SGX Central Depository (CDP): A Super Quick Guide To Open One Now (2019)

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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Alvin Chow

Have you ever wondered:“What is a ‘CDP’ for and why do I need it?”“How do I sign up for a CDP account?”“Why do the figures in my brokerage statement not match with my CDP statement?”Then you have landed on the right article. Here, we will cover what a CDP is, why you need it,  and […]
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Singapore REIT Bubble Charts Dec 2018

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Author: Marubozu

Bubble charts derived from Dec 3, 2018 Singapore REITs Fundamental Comparison Table. Two observations compared to last Bubble Charts.

(1) There are a few REITs move further from right to left of the Price/NAV axis due to rights issue (e.g. Keppel KBS REIT and Cromwell REIT) and price sell off (FIRST REIT). The distribution yield is also getting very attractive. This indicates some REITs are getting cheap based on valuation. Note: Distribution yield is lagging.

(2) There are no significant changes in gearing ratio.

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.

 

If you are new to REIT investing or want to learn more about REIT, you may attend my coming REIT Webinar here.

tinyurl.com/reitwebinar

Promocode: REITSWEB

 

 

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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Singapore REIT Price / NAV Range Chart Dec-2018

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Author: Marubozu

Original post from http://mystocksinvesting.com

Singapore REIT Price / NAV Range Chart base on Dec 3, 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.

 

If you are new to REIT investing or want to learn more about REIT, you may attend my coming REIT Webinar here.

tinyurl.com/reitwebinar

Promocode: REITSWEB

 

 

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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Singapore REIT Fundamental Analysis Comparison Table – 3 Dec 2018

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Author: Marubozu

Technical Analysis of FTSE ST REIT Index (FSTAS8670)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 767.98  to 783.05 (+1.96%) as compared to last post on Singapore REIT Fundamental Comparison Table on Nov 5, 2018.

Currently the index is trading in a down trend channel after finding a short term support around 760. This support was tested on 4 occasions since mid Oct. Currently the REIT index moves above the 20D and 50D SMA indicates short term bullishness. There may be a chance the REIT index enters into side way consolidation mode based on chart pattern.

Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction SIDE WAY to DOWN! The REIT index will be capped by the immediate resistance at about 800 which is the 200D SMA resistance and also the round number.

 

Fundamental Analysis of 39 Singapore REITs

The following is the compilation of 39 REITs in Singapore as of Nov 2018 with colour coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio. This gives investors a quick glance of which REITs are attractive enough to have an in-depth analysis. There are currently 39 REITs in Singapore after VIVA Industrial Trust merged into ESR REIT.

  • Price/NAV increases from 0.93 to 0.94 (Singapore Overall REIT sector is under value now).
  • Distribution Yield stays at 7.16% (take note that this is lagging number). About 46% of Singapore REITs (18 out of 39) have Distribution Yield > 7%.
  • Gearing Ratio increases slightly from 34.5% to 34.6%.  19 out of 39 have Gearing Ratio more than 35%. In general, Singapore REITs sector gearing ratio is healthy. Note: The limit of gearing ratio for REITs listed in Singapore Stock Exchange is 45%.
  • The most overvalue REIT is Parkway Life (Price/NAV = 1.57), followed by Keppel DC REIT (Price/NAV = 1.33), Mapletree Industrial Trust (Price/NAV = 1.28) and Ascendas REIT (Price/NAV = 1.25).
  • The most undervalue (base on NAV) is OUE Comm REIT (Price/NAV = 0.53), followed by Fortune REIT (Price/NAV = 0.56), Keppel KBS US REIT (Price/NAV=0.64), Far East Hospitality Trust (Price/NAV = 0.69) and Starhill Global REIT (Price/NAV = 0.74).
  • The Highest Distribution Yield (TTM) is Lippo Mall Indonesia Retail Trust (12.39%), followed by Cromwell European REIT (10.76%), Keppel KBS US REIT (10.58%), OUE Comm REIT (9.51%), Sasseur REIT (9.02%), SoilBuild BizREIT (8.99%), EC World REIT (8.73%) and Cache Logistic Trust (8.51%).
  • The Highest Gearing Ratio are Far East HTrust (40.3%) and OUE Comm REIT (41.4%).

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 1.51592% to 1.63433%
  • 3 month increases from 1.64286% to 1.75908%
  • 6 month increases from 1.75705% to 1.87918%
  • 12 month increases from 1.96875% to 2.06375%

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 87.8%, increases from 68.8% 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. You may compare 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 compressed from 4.654% to 4.476%.  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 distribution yield. There were number of Rights issue recently like Keppel KBS US REIT and Cromwell European REIT. It is expected the frequency of Rights issue by the REITs will increase in a rising interest rate environment because the cost of borrowing is relatively cheaper compared to debt financing. Investors have to pay extra attention and reserve additional cash for any rights issue.

Technically, the REIT index is entering into consolidation phase with immediate support at 760. The current price level for REIT index may have already priced in the interest rate hike to 2.5%. As long as 760 support holds, it may be a good time for more accumulation because 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.

Safe shopping on Singapore REITs!

 

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/

 

If you are new to REIT investing or want to learn more about REIT, you may attend my coming REIT Webinar here.

tinyurl.com/reitwebinar

Promocode: REITSWEB

 

 

 

3 Reasons Why Your HDB Flat is Worth $0

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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Irving Soh

I hear you yelling already. You don’t want to believe me, and that’s ok. But you better believe this guy. “Is it fair? I think it’s fair” – Prime Minister Lee Hsien Loong Ok? Done? Can we all stop yelling now? Get it into your head. Just like your car that has to be scrapped […]
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3 Pitfalls investors must know before investing in REIT

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Author: Marubozu

Most investors are attracted by the high yield and passive income REIT offers. However, there are 3 important points to take note when investing in REIT.

(1) It is never wrong to buy a real estate at a discount (i.e. under value) in theory. However, beware of the value trap because some of the REITs are always traded below its book value due to the inherited risks. There is no free lunch in the investing world, cheap stuff may not be a good investment as the stock market is efficient and adjusted to the true value very fast. The smart money always buy up cheap and good REIT when there is an opportunity before the retail investors even have a chance to spot it.

(2) REIT uses debt and/or equity financing to raise funds to acquire properties, collect rental from the tenants and pay 90% of the net property income back to unit holders. As such, it is very common for REIT to issue additional shares (i.e. to the existing unit holders or to private investors to raise capital. Most of the time, the right issues are offered at a discount to the market price and immediately the existing shareholder will suffer capital loss if they are unable to folk out additional funds to subscribe to the rights.

(3) High return always associate with higher risk when it comes to investing. Similar to REIT investing, some of the REITs give very attractive distribution yield up to 7-9% but one must make sure they fully understand the risks in it. Most retail investors are just purely relying on the distribution yield as the selection criteria when come to REIT selection.

Investing is all about risk management, it is very important to understand all the risks before putting your hard earned money investing in REIT for your retirement. Get a professional help in building your REIT portfolio for your retirement because retirees cannot afford to make any mistakes when it comes to investing.

 

Kenny Loh is a Senior Consultant from Singapore Largest Independent Financial Advisor helping clients in building an investment portfolio for retirement. He specialised in Singapore REIT and has been conducting REIT investing courses for past 6 years. 

He won the Top Investment Asset Under Advisory (AUA ) 2nd runner up in 2017 and currently managing million of AUA. He also won the Best Practice Consultant Award in 2017. He can be contacted through kennyloh@fapl.sg if you would like his help to personalise a REIT portfolio for your retirement.

Would You Rather Have $250,000 In Cash Or $500,000 In The CPF?

Click on Would You Rather Have $250,000 In Cash Or $500,000 In The CPF?
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https://www.drwealth.com/wp-content/uploads/cropped-drwealth-favicon-32×32.jpg Author: Alvin Chow

A few weeks ago, I created this poll on BIGS Facebook Group: You probably find the result surprising: 31% voters would rather choose to have $250K cash than $500k in the CPF. The motivation behind the poll was to get a sense on how people view monies in their CPF accounts vis-a-vis cash held in the […]