Monday, July 15, 2013

S-REITs – Just keep swimming (DBSV)

 S-REITs – Just keep swimming

•Strong occupancies and performance across the different segments indicate organic growth.
•Cap rates: underlying book values should remain resilient
•Impact of labour crunch on tenants: securing and maintaining quality labour is first priority
•REITs in the washer, but fundamentals are intact

The proof is in the pudding. We hosted S-REITs from the industrial, hospitality and retail sectors at the recent bi-annual DBSV Pulse of Asia Conference. Against a backdrop of questions about higher interest rates and borrowing costs, labour crunch and slowing economic growth in Asia, the REITs remained generally upbeat about occupancies and rents, citing still-strong tenant performance and positive rental reversions as indicators of organic growth going forward.


Cap rates to remain relatively stable at this point, Japan retail segment may see compression in the medium term. S-REITs generally expect NPI growth to drive or support valuations. Book value cap rates have not compressed significantly, hence, the underlying book values should remain resilient. For example, AREIT’s Singapore portfolio cap rate is 6.6% and FCT’s assets have only seen 25bps compression compared to two years ago. In Japan, the suburban retail segment could see a lag in narrowing of cap rates, only after major segments such as commercial property have experienced cap rate compression.

Labour: train, retain and automate. Most REITs are managing the impact of rising labour cost on their operating expenses well. This should translate into stable NPI margins.  Industrial REIT tenants are looking to automate operations rather than hire additional labour, which should help to improve productivity and reduce their dependence on labour.

Look for REITs with organic growth. The turbulent share price performance in the last few months should not detract from the achievable and visible organic growth that will drive earnings going forward. S-REITs remain solid bets for yield seekers. Within our coverage, we like Cache for its locked-in earnings growth and acquisition opportunities, FCOT for its strong capital management and organic growth from Alexandra Technopark, and MCT for its strong reversionary growth profile, particularly from VivoCity.


Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 12/07/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
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