Reits in singapore 2020 moneysmart guide to investing in. Ocbc investment research weekly s reits tracker exhibit 1. At that moment, i was shocked as so far no companies had announce dividend payout and cancelled it. We, like all sellside analysts, were blindsided by suntecs past performance and missed the 30% share price rally in 2017. Suntec reit paid a total dividend of 280 million sgd last year, for a market value of 5,148 millions market cap 3,765 millions. The retail reit with the lowest price to book value is lippo malls indo retail trust at 0. The firm operates through the following business segments. Suntec real estate investment trust t82u quote morningstar.
Today, we will show you how you can own real estate through an investment vehicle called real estate investment trust reit. As a summary, here are the 10 steps i use to pick the best singapore reits. Measures the market price of share price over the value of companys assets expressed on the balance sheet. From the weekly chart, we can clearly see that suntec reit has been in a downtrend over the past two month. The analyst also argues that reits with office exposure, such as suntec reit, should trade above book value with a multiyear upturn in. Suntec real estate investment trust published this content on 24 april 2019 and is solely responsible for the information contained herein. Peer comparison singapore reits price mkt cap float fye dpu curr dpu fwd dpu curr yield fwd yield ytd return da pb. Suntec reit is a commercial reit that focuses on offices and, to a lesser extent, retail properties. Suntec reit is a company from singapore, and his stocks are publicly traded. Singapore reits charts my stocks investing journey.
This is a useful analysis and should convince more people to invest in reits. Suntec real estate investment trust credit rating moodys. Want to learn more about reits listed on the singapore exchange. Listed on 9 december 2004 on the main board of the singapore exchange securities trading limited sgxst, suntec real estate investment trust suntec reit is the first composite reit in singapore. Reitsweek is a publisher of news and data on reits, and securitised real estate investments. You are required to enter your iwealth login credentials to download. Listed in 2004, suntec real estate investment trust suntec reit derives income from a portfolio of prime properties, comprising of a retail. Simply enter your email below to download the 5 singapore reits. The new fourth edition of the definitive handbook on investing in real estate investment trusts reits. Welcome to my investment blog where i share with you my analysis of reits in singapore. Over the last 15 years, we have built a strong portfolio comprising high quality assets in singapore and key cities in australia and we remain focused in creating value for our. We believe suntec reit s portfolio could be revalued higher at the end of the financial year. T282u, another longterm investment of mine, released their. While book values will probably be lifted, asset management fees could.
The office reit with the lowest price to book value is suntec reit at 0. Suntec reit technical analysis and fundamental analysis. Jan 24, 2020 suntec real estate investment trusts sgx. Suntec reit is part of real estate investment trusts business, which is part of financials industry. Suntec real estate investment trusts book value per share for the fiscal year that ended in dec. Suntec reit share price, stock quote, gearing ratio. Jul 26, 2018 in the wake of the quarters results, suntec reit finished its trading day on 26 july about 0. In light of the organic earnings growth and attractive valuation, rhb is ranking suntec reit as its top pick in the commercial reit sector. Suntec real estate investment trust is a singaporebased company, which is engaged in investing in income producing real estate and real estate related assets, which are used for commercial purposes, with the primary objective of achieving returns from rental income and for longterm capital growth. The office reit with the highest price to book value is manulife us reit at 1. Suntec reit is trading below 20d, 50d and 200d sma. All content on is for your general information and use only and is not intended to address your particular requirements. Listed on 9 december 2004, suntec reit holds properties in suntec city, singapores largest integrated commercial development including one of singapores largest shopping mall, a 60.
Reit information including dividend yields, gearing ratio. See our latest analysis for suntec real estate investment trust. Their priceto book ratio also seems to be very high at 1. It would really be even better if you could include those that has 5 year history. Suntec reit seems to fit the bill and hence, this shall be my first analysis on this venerable sgx stock.
Find market predictions, t82u financials and market news. Name price distribution yield price to book dpu nav property yield gearing ratio. As there is mounting evidence of a sustained turnaround at suntec city mall, spot office rents maintaining an upward trajectory and underlying dpu to improve by 3% p. Hence, suntec real estate investment trusts pb ratio of today is 0. Another factor of consideration is the quality of the management in strategizing growth for the company. Stock analysis research and articles on this site are.
It also allows investors to gain access to valuable properties too large for any individual investor. We maintain our buy call on suntec real estate inv trust sgx. Suntec reit is a company from singapore, and his stocks are publicly traded suntec reit paid a total dividend of 280 million sgd last year, for a market value of. Stock analysis research and articles on this site are for the purpose of information sharing and do not serve as. Is there still value in suntec real estate investment trust. Suntec reit dividend yields history across the years. Analysis on suntec reit the rationale for this stock research arises from my recent decision to invest in a reputable reit with a consistent track record of cash distribution per unit dpu. Some insights of suntec reit s portfolio, tenants and net property income from their annual report and key pointers to take note. Thus, if i use ocbc securities margin loan guidelines as my guide, ocbc securities is willing to lower their loan interest rates on suntec reit to 3. Real estate investment trusts, fourth edition does exactly that.
Stock analysis research and articles on this site are for the purpose of information sharing and do not serve as recommendation of any. Dec 17, 2018 suntec real estate investment trust suntec reit and mapletree commercial trust mct share quite a few similarities between them. What is the best book to start learning about reits investment. Real estate investment trust, or reit, are great instruments for income investors. In singapore, its portfolio consists of suntec city, which includes one of the largest convention centers and retail malls in singapore, along with stakes in one raffles quay, mbfc properties, and the development at 9 penang road.
The sweet retirement blog was created to share my journey towards achieving a comfortable retirement life. So, book value and related ratios like priceto book often dubious in regard to general equities analysis are pretty much useless for reits. Since early 2018, more sellside analysts have joined us in being bullish on suntec reit. The analyst also argues that reits with office exposure, such as suntec reit, should trade above book value with a multiyear upturn in singapore office rents on the horizon. Full analysis on singapore reits value invest asia. Oct 19, 2019 another factor of consideration is the quality of the management in strategizing growth for the company. Simply enter your email below to download the 5 singapore reits that consistently increase their dpu for your watchlist. During the crisis, i have picked up ocbc bank, singtel, us manulife reit and. Singapore reits, or more commonly known as s reit are famous for their high yields in singapore. Sep 30, 2019 listed on 9 december 2004 on the main board of the singapore exchange securities trading limited sgxst, suntec real estate investment trust suntec reit is the first composite reit in singapore. Want to invest in singapore reits but dont know where to start. Its portfolio comprises office and retail properties in singapore and australia.
Any of his editions are worth a read as they have long been considered the definitive guides to reit investments for both individual and institutional investors. For the past two weeks, suntec reit rebounded strongly without any deep pullback. Singapore suntec real estate investment trusts suntec reit manager has closed the book of orders for its private placement of new units in the reit. Should you invest in suntec real estate investment trust sgx. This report, which consists of key financial figures, keeps the board informed of. We strive to deliver timely and accurate news, data and information on reits and property trusts listed globally. The average price to book value for retail reits is 1. However, we believe the rally can be sustained from current levels, as we now have greater confidence in ceo, mr chan. In theory, if the priceto book value is less than 1, a reit is trading for less than its worth. In return, reits typically do not pay corporate taxes.
The office segment comprises of suntec city, park mall, and pacific highway. However, when compared against its fiveyear average pb ratio of 0. You can find all the full analysis about reit in singapore. The reit with the highest price to book value is keppel dc reit at 1. My sweet retirement personal views on stock investment. Notice is hereby given that the transfer books and register of unitholders of suntec real estate investment trust suntec reit will be closed at 5. I see that as an affirmation of their company strength and credit rating even though it does not fulfil my investment criteria. Generally, it is relatively safe to sit on the short side. Top 10 singapore reits that made you money if you invested. If so, picking the right reits that have stable and growing dpu is key to growing your passive income.
For credit ratings that are derived exclusively from an existing credit rating of a program, series, categoryclass of debt, support provider or primary rated entity, or that replace a previously assigned provisional rating at the same rating level, moodys publishes a rating announcement on that series, categoryclass of debt or program as a whole, on the support provider or primary rated. As the interest in reits grows, so does the need for an indepth, reliable, yet accessible resource for understanding these investments. Jul 24, 2015 suntec reit is one of the largest companies in singapore. In this way, a reit stock is similar to any other stock that represents ownership in an. I am a strong believer that an early and comfortable retirement can be achieved by value investing and accumulation of passive income through stocks that pays stable and consistent dividends. Suntec real estate investment trust welcome to real. It might be better to avoid suntec real estate investment trusts. Blocks investing in reits is in its fourth edition. Suntec reit suntec has a portfolio of office and retail properties in. Top 10 singapore reits that made you money if you invested from their ipos updated 2020 by rusmin ang on february 18, 2020. The following is an analysis of two compelling factors, and one emerging concern that investors may want to take note of with regards to suntec reit. Maybank kim eng research 20150701 real estate sector part 5.
The writer, jun yuan lim is a veteran community member and blogger on investingnote, with username known as ljunyuan and has 886 followers. Real estate investment trusts reits, which provide some of the best total returns in the investment world, along with aboveaverage dividend yields and stable earnings, have become increasingly popular with both individual and institutional investors. View live suntec reit chart to track its stocks price action. Stock analysis for suntec real estate investment trust sun. Listen to our interview with brad thomas on the sure investing podcast. Find the most relevant information on reit stocks and reit investing from. T282u, another longterm investment of mine, released their annual. Learn about t82u with our data and independent analysis including price, star rating, valuation, dividends, and. Download our current and past reports in pdf format. Hi kenny, thank you for the recent workshop that was conducted with otcs, it was very informative.
Singapore including stock price, stock chart, company news, key statistics, fundamentals and company profile. Structure, analysis and strategy garrigan, richard, parsons, john on. Suntec real estate investment trust engages in the ownership of incomeproducing real estate, which is primarily used for retail and office purposes. One question that i did not have the chance to ask, when pricenav is below 1, it means that the price value is less than the asset value of what the company owns at the moment, but how is that then that the price is considered overvalued. Listed on the singapore stock exchange in 2004, suntec real estate investment trust suntec reit is one of the pioneer real estate investment trusts in singapore. Mar 02, 2020 a real estate investment trust reit is a real estate company that offers common shares to the public. Far east hospitality trust far east hospitality trust feht ipo at 2012 with much fanfare as one of the first hospitality trust to be listed in the singapore exchange backed no less by the richest family in singapore far east organization. Suntec reit looks undervalued since its pb ratio is below 1.
Yield how much can you expect in dividends pricetobookvalue ratio pbv high ratios, high investor worth low. Click here to find out singapore reits portfolio advisory. The beauty of reits, for income investors, is that they are required to distribute 90% of their taxable income to shareholders annually, in the form of dividends. Jan 16, 2020 i took time to look at the statistics of this reit. Suntec real estate investment trusts, or suntec reits, fullyear 2019 results were in line with our expectations. I used the word decent because that is the average of office reits in singapore. Mar 27, 2015 in addition, an executive summary of suntec reits performance is furnished to the board on a monthly basis. This comes after chan accomplished a deep dive into suntec mall and identified easy wins to improve the malls performance, in songs view. Suntec real estate investment trust suntec reit and mapletree commercial trust mct share quite a few similarities between them. The singaporelisted real estate investment trust acquired the property from milligan group. Dec 31, 2019 suntec reit is part of real estate investment trusts business, which is part of financials industry.
324 1542 266 342 401 1307 1010 534 189 1201 1489 630 1540 210 1382 991 703 619 153 1460 199 1262 985 769 1017 1143 1152 944 1147 952 972 569 133 1042 1027 157 908 63 1131 1125 1234 1355 983