(13-06-2013, 11:43 PM)Penguin Papa Wrote: [ -> ] (13-06-2013, 10:08 PM)freedom Wrote: [ -> ]I can't imagine a better environment for REITs than now.
the interest rate is so low that it almost can't be lower.
the availability of money is so high, you can get it if you want it with local property assets backing.
so how favorable is the future going to be?
What do you mean?
it is unlikely the price of REIT can be much higher in the future. or the chance it goes lower is much higher than it goes higher.
(13-06-2013, 11:46 PM)freedom Wrote: [ -> ] (13-06-2013, 11:43 PM)Penguin Papa Wrote: [ -> ] (13-06-2013, 10:08 PM)freedom Wrote: [ -> ]I can't imagine a better environment for REITs than now.
the interest rate is so low that it almost can't be lower.
the availability of money is so high, you can get it if you want it with local property assets backing.
so how favorable is the future going to be?
What do you mean?
it is unlikely the price of REIT can be much higher in the future. or the chance it goes lower is much higher than it goes higher.
Yes, agree. I actually prefer a stable interest rates, and see growth in REITs by increasing DPU.
Master lessees of the five properties whose master leases expire in November 2013
151 Lorong Chuan: Branbury Investments (a subsidiary of City Developments Limited)
8 Commonwealth Lane: Utraco Greentech Pte. Ltd. (a diversified engineering company)
200 Pandan Loop: Eccott Pte. Ltd. (a subsidiary of City Development Limited)
3 Kallang Way 2A: Fong Tat Motor Co. Pte. Ltd. (automotive parts distributor)
123 Genting Lane: Yenom Industries Pte. Ltd. (a manufacturer of Pressure Sensitive Adhesive materials)
Vested......
REITS is a special class of investment. It should be buy @ a price where it's DPU (D. yield) is satisfactory and sell @ the moment the yield is not satisfactory according to each individual reits. It should not be treated as a B&H long term growth stock.
Someone use the analogy of the farmer milking the cow on the farm. Not only the cow needs nourishment but the farmer needs more & more cows just to give you the milk you crave. You also have to pay more & more to the farmer. i think it's a possibility that in the end the only one who gains will be the farmer. Some of the cows may belong to him if you can't pay.
(14-06-2013, 12:20 PM)Temperament Wrote: [ -> ]REITS is a special class of investment. It should be buy @ a price where it's DPU (D. yield) is satisfactory and sell @ the moment the yield is not satisfactory according to each individual reits. It should not be treated as a B&H long term growth stock.
Someone use the analogy of the farmer milking the cow on the farm. Not only the cow needs nourishment but the farmer needs more & more cows just to give you the milk you crave. You also have to pay more & more to the farmer. i think it's a possibility that in the end the only one who gains will be the farmer. Some of the cows may belong to him if you can't pay.
Definitely agree with you. I am gladly switch out of my reits if I can find a company with good dividend track record to place my money in. Been searching high and low during these 2 weeks, but still yet to find any out of my existing holdings that can satisfy my yield "craving".
Sabana had released it's results. More interesting is the following statement:
On 25 November 2013, the three‐year master leases (signed at the time of Sabana REIT’s listing) for 151 Lorong Chuan, 8 Commonwealth Lane, 200 Pandan Loop, 3 Kallang Way 2A and 123 Genting Lane will expire. At the time of listing, these five master leases contributed close to 60% of the gross revenue of Sabana REIT’s portfolio. With the acquisitions of six properties post listing, this concentration has been reduced to 44.7% of Sabana REIT’s gross revenue.
We’re pleased with the progress we’ve made in engaging our tenants, negotiating early renewals for underlying leases, as well as in filling up available space. In the event that the remaining four master leases are not renewed, we will be well‐prepared to take over the direct management of these currently master‐tenanted properties and we’re positive that the transition will be smooth. ” Mr Xayaraj said. Under this scenario, the net balance of the net lettable area (“NLA”) available for lease on 25 November 2013 is expected to be approximately 7.3% of Sabana REIT’s total NLA.
If this holds true, 7.3%, instead of 44%, expiring will be insignificant. The weighted lease term to expiry is also increased from 1.7yrs (20.4mths) to 25.6mths.
I think there is slightly more than 4 months between now and end November.
To outfit a reasonable facility, whether it is a factory or an office, I think smelly smelly also need 3 months. This is provided that the space has been identified and taken over by tenant. If by this time, tenant still negotiating with landlord, I suspect tenant has a weak hand.....
Too many industrial buildings and fewer tenants, it is a tenant's market.
I think sabana mgmt is already behind schedule
by right if things were going well, all 5 master leases would had been renewed already
clearly the current situation is unfavourable, shareholders do be careful