Reward 1000 Tiger-coinsAnalysts widely expect that S-REITs will be the primary beneficiaries during an interest rate cut cycle.
In the first half of this year, interest costs for $SATS LTD.(S58.SI)$ , $ParkwayLife Reit(C2PU.SI)$ , and $IFAST(AIY.SI)$ increased the most, more than doubling.
Thilan Wickramasinghe, Head of Research at Maybank Securities believes that interest rate cuts will help reverse the trend of rising interest costs for these companies.
$SATS LTD.(S58.SI)$ has surged significantly after its latest financial report. If it benefits from interest rate cuts, could SATS reach its previous highs?
If interest rates continue to drop significantly, S-REITs will benefit in three ways.
First, lower capital costs will increase fair value;
second, S-REITs can resume transactions and capital recycling;
finally, it will attract income-seeking investment capital.
$CapLand IntCom T(C38U.SI)$ , $CDL HTrust(J85.SI)$ , $CapLand Ascendas REIT(A17U.SI)$ , $Frasers Cpt Tr(J69U.SI)$ , $Far East HTrust(Q5T.SI)$ , and $Suntec Reit(T82U.SI)$ are Wickramasinghe's top picks.
Telecom companies could also benefit from rate cuts.
Telecom companies' stock prices typically have a strong inverse relationship with interest rates, meaning that as interest rates rise, stock prices fall. $NetLink NBN Tr(CJLU.SI)$ , which operates the nationwide fiber broadband network, could benefit from rate cuts.
Which S-REITs are you holding?
Is the rate cut been priced in in regard of their rally?
Leave your comment and share your top pick of S-REITs to win at least 5 tiger coins~
Comments
Lesson learned
$EC World Reit(BWCU.SI)$ still flat, still suspended. The Reit manager said on Jan 2 that the sponsor had taken out the mortgages without its knowledge and consent. It only learnt about the illegal mortgages from its onshore security agent.
Since Jan 5, the manager has taken control of the company and legal representative seals, as well as the contract and finance stamps from the property management teams in China.
The sponsor updated unitholders on Jan 15 that a lapse in the approval process resulted in the illegality of the three mortgages.
If you think REITS good investment, good PB, EPS, DY, etc etc when problems happened, good PB and EPS couldn't not help. It will become flat. So always invest within your risk limit, do not go crazy because of money. I always consider to diversify, although not profit much, do not loss much either.
Wish there is solution for BWCU.
reits like $Mapletree Ind Tr(ME8U.SI)$ $Mapletree PanAsia Com Tr(N2IU.SI)$ $Mapletree Log Tr(M44U.SI)$ $ParkwayLife Reit(C2PU.SI)$ $CapLand IntCom T(C38U.SI)$ are those stocks that I prefer. of course there are some other good reits...
@SPACE ROCKET @TigerGPT @Aqa @koolgal @LMSunshine @Shyon @GoodLife99 @rL @Universe宇宙 @HelenJanet
Which S-REITs are you holding?
Is the rate cut been priced in in regard of their rally?
Leave your comment and share your top pick of S-REITs to win at least 5 tiger coins~
Some top-performing S-REITs include:
- * $FAR EAST HOSPITALITY TR.(FEHTF)$*: One of the best-performing REITs with positive total returns
- * $First Reit(AW9U.SI)$*: Another top-performer with strong returns
- * $AIMS APAC Reit(O5RU.SI)$*: Also among the top three best-performing REITs
- *CapitaLand Ascends REIT*: Showing positive total returns
- * $Mapletree PanAsia Com Tr(N2IU.SI)$ * and * $Mapletree Log Tr(M44U.SI)$*: Expected to benefit from the projected rally
DBS analysts expect these REITs to significantly benefit from the potential rate cut, with investors favoring those with heavy exposure to Singapore real estate.