atans1

S-Reits: “Cheong all the way” says OCBC Sec

In Property, Reits on 10/01/2013 at 7:41 am

Especially industrial Reits ’cause of the 7% yields.

“Looking into 2013, we believe S-REITs would likely retain their shine, underpinned by three key drivers. First, the sector offers the highest yield spreads among its peers in other major markets. Second, S-REITs are likely to be in favour amid the uncertain macroeconomic outlook, given their defensive low beta nature. Lastly, the outlook and financial position of S-REITs are generally positive, which should translate to firm performances going forward.”

S’pore Biz Review

I wouldn’t be a seller, but I sure am not going to add to my exposure to Lippo-M, AIMSAMP or Fraser Commercial, or to buy any other reit. But watching like a hawk to find a reason to sell.

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  1. No worries man. Markets will cheong for next 6 months. PAPies will open the floodgates even wider after population review this month. Gotta support the hopeless SMEs and pump up the GDP figures. Take advantage of the golden age while you still can.

  2. My foecast,for whatever it is worth,is that it is going to be bad after the Chinese new year,it is probably worth two cents,regardless of wahever PAPies decide to do.

  3. The reason for the highest yield spread for SReits against other markets is due to the proportion of industrial, healthcare or emerging market REITs within the index.

    In the case for Singaporean industrial properties, these are leasehold interests so the yield profile against Japanese assets is always going to be higher.

    Hotels, Indonesian/Indian healthcare/retail properties trade at higher yields than office & retail properties.

    So basically although the SReit index trades above its peers – there is a reason for it! And should not imply that SReits are cheap

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