Singapore - Comm Properties & REITS 02 (Jan 13 - Jan 19)

[behappyalways]

Singapore's Empty Office Party
https://www.bloomberg.com/gadfly/articl ... e-property

[winston]

Singapore High-Rise Office Rents Decline by 7% as Demand Slows

by Jack Sidders

Annual rents on the upper floors of Singapore’s skyscrapers fell 7 percent to about $775 a square meter in the first six months, according to a 23-city index compiled by Knight Frank LLP.

The biggest increase was in Shanghai, where rents climbed 7.6 percent to $774.

In Hong Kong, the most expensive market, rents rose by 5.9 percent to $2,996 a square meter, the broker said.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... mand-slows

[winston]

Singapore high-rise office rents decline by 7% as demand slows

The cost of renting an office with panoramic views in Singapore is falling as supply outstrips demand.

Annual rents on the upper floors of Singapore's skyscrapers fell 7% to about US$775 a square metre in the first six months, according to a 23-city index compiled by Knight Frank LLP.

The biggest increase was in Shanghai, where rents climbed 7.6% to US$774.

In Hong Kong, the most expensive market, rents rose by 5.9% to US$2,996 a square metre.

Source: DBS

[behappyalways]

Singapore Landlords, Take a Bow
https://www.bloomberg.com/gadfly/articl ... ing-or-two

[behappyalways]

Industrial rents could fall up to 14%
http://sbr.com.sg/commercial-property/n ... ld-fall-14

[winston]

Singapore’s Mall Vacancies Jump to Highest Level in a Decade

by Pooja Thakur Mahrotri

Office vacancies also climb in quarter to a four-year high
Residential rentals fall to lowest level since June 2010

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... n-a-decade

[winston]

Singapore REITs: Accumulate on weakness

The share prices of S-REITs have come under selling pressure over the past two weeks, with the FTSE ST REIT Index (FSTREI) declining 4.3% since 24 Oct.

While this is in-line with the broad market weakness (STI down 2.0% during the same period) given uncertainties over the U.S. presidential election, we believe the underperformance can also be attributed to increasing market jitters over the likelihood of a Fed rate hike in Dec this year.

The FSTREI is currently trading at a yield spread of 472 bps against the Singapore Government 10-year bond yield, which is half a standard deviation above the 5-year mean.

We maintain our OVERWEIGHT rating on the S-REITs sector.

Our preferred picks are Frasers Centrepoint Trust [BUY; FV: S$2.33], Keppel DC REIT [BUY; FV: S$1.35], Ascendas REIT [BUY; FV: S$2.67], SPH REIT [BUY; FV: S$1.05] and Mapletree Greater China Commercial Trust [BUY; FV: S$1.15].

Source: OCBC

[winston]

Swoop in on S-REITs while markets are cautious

By Benjamin Cher

SINGAPORE (Nov 9): Investors now have a chance to accumulate Singapore REITs while the market overshoots, according to a Tuesday report by DBS.

Lead analyst Derek Tan notes the recent share price weakness of S-REITs was due to increased macro uncertainties, coupled with the fourth quarter traditionally being unhappy times for REIT investors.

Uncertainties arising from Trump's win in the US presidential election, potential rate hike in Dec and profit-taking as REITs remain ahead since the start of the year have also resulted in net outflows for Singapore REITs, notes Tan.

“Month-to-date prices have come down by 5-10%,” says Tan.

Thus lies the opportunity for investors to accumulate. The share price is also further supported by the headline FY17 yield of 6.45%, notes Tan, which represents a yield spread of 4.6%, above historical mean.

“Using historical price performance as a guide, we believe that further downside from current levels appear limited,” says Tan.

REITs fit the bill for investors looking for yields in the uncertain economic outlook, notes Tan. While interest rates remain an overhang, Tan notes that most S-REITs have refinanced their loans ahead of expiry and hedged in a substantial portion of the interest rates profile into fixed rate debt.

Among the S-REITs, Tan believes that selected office and hospitality REITs such as Keppel REIT and CDL Hospitality REIT are attractive, with “buy” calls and target prices $1.23 and $1.59 respectively.

Ascendas REIT (buy with target price $2.65), Frasers Logistics and Industrial Trust (buy: $1.10) and Mapletree Commercial Trust (buy: $1.62) are attractive in terms of growth, notes Tan.

For small-cap REITs, Tan notes that Croesus Retail Trust (buy: 99 cents) offers an attractive yield of more than 8%.

Shares of Keppel REIT, CDL Hospitality Trusts, Ascendas REIT, Frasers Logistics and Industrial Trust, Mapletree Commercial Trust and Croesus Retail Trust are trading at $1.08, $1.33, $2.34, 96 cents, $1.54 and 86 cents respectively,

Source: The Edge

http://smr.theedgemarkets.com/article/s ... e-87358173

[winston]

SINGAPORE REITS

Source: Reits Week

https://www.reitsweek.com/singapore-reits-information

[behappyalways]

The Big Read: At some suburban malls, retailers confront the sound of silence
http://m.todayonline.com/business/some- ... nd-silence