S-REITs Earnings: Will You Add More Before Rate Cut?

Tiger_SG
10-16
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This week marks the earnings week for Singapore REITs.

$ParkwayLife Reit(C2PU.SI)$ will report business update for Q3 FY2024 on 2024/10/16. $Keppel DC Reit(AJBU.SI)$ and $Sabana Reit(M1GU.SI)$ will release business update for Q3 FY2024 on 2024/10/18.

Healthcare vs. Data center REITs: Which one is your pick?

1. $ParkwayLife Reit(C2PU.SI)$ is one of Asia's largest healthcare REITs, focusing on income-producing real estate for healthcare purposes.

In July, the hospital and nursing-home landlord announced a 3.5% rise in first-half distribution per unit. But revenue fell 2.7% because of the depreciation of the Japanese yen. Following the last earnings report, Parkway has risen by 14%.

2. $Keppel DC Reit(AJBU.SI)$ is Asia's first pure-play data center REIT. It invests in income-producing real estate primarily for data centre use, supporting the digital economy.

It has grown its assets under management by almost four times, from S$1.1 billion as at end-2015 to S$3.7 billion as at the end of 2023. Keppel DC has increased by 20% this year.

In the recent H1 earnings report, Keppel's DPU fell by 9.9% due to rising finance costs, and the depreciation of the Singapore dollar.

However, this drop in DPU was partially offset by revenue growth, with the stock rising by 13% after the earnings report. Revenue for the first half grew by 11.9%, reaching S$157.2 million.

Benefit from rate cut or not? Analysts warned delayed positive impact due to fixed-rate debt.

The market believes that a rate cut by the Federal Reserve will benefit REITs.

However, some analysts argue that this earnings report may not show much positive impact because most REITs have debts pegged to fixed interest rates. The benefits of a rate cut may not truly reflect in earnings reports until 2025.

If any company sees a significant drop in its stock price after this earnings report, would that present a buying opportunity?

Would you consider buying more REITs before the rate cut?

Which REIT is your favorite, and why?

Do you hold any other S-REITs?

Leave your comments and join our discussion to win at least 5 tiger coins~

Your coins will be distributed in this topic within 7 days.

SG Earnings: Is Mapletree PanAsia a Buy After 5% Drop?
Mapletree Pan Asia Commercial Trust's units fell sharply as weak second-quarter results and a revaluation of its Japan properties weighed on investor sentiment. Keppel Corporation reported a 14% increase in recurring income for the first nine months of 2024, driven by strong performance in asset management and operating income. Keppel REIT and Mapletree Logistics Trust's fell as distributable income drop, primarily caused by higher borrowing costs and lower divestment gains. ------------- At what price would you buy them?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • Shyon
    10-16
    Shyon
    I would consider buying more REITs before the anticipated rate cut, as lower interest rates can enhance their appeal by reducing borrowing costs and improving profitability.

    One of my favorites is CSOP SRT (CSOP S-REIT ETF). This ETF provides diversified exposure to Singapore REITs across various asset classes, including commercial, retail, and industrial properties, which helps mitigate risks associated with market fluctuations.

    CSOP SRT focuses on high-quality REITs with stable cash flows, making it resilient during uncertain economic periods. Additionally, the ETF structure offers liquidity and diversification, allowing investors to easily access the Singapore REIT market.

    As rate cuts approach, CSOP SRT’s stable distribution yield and potential for capital appreciation position it as an attractive option in my portfolio. Overall, its diversified approach and focus on quality make it well-suited for future growth.
    @Tiger_SG @TigerStars @Tiger_comments @TigerGPT @CaptainTiger

    • koolgalReplyShyon: 
      Thanks for sharing 😍😍
    • icycrystalReplyShyon: 
      [Like] [ShakeHands]
    • Shyon: 
      Come and join yo @koolgal @rL @icycrystal @b1uesky @Universe宇宙 @Barcode @nomadic_m @GoodLife99 @Fenger1188
    • TigerGPT: 

      Based on the information available, there were several news articles related to S-REITs and the anticipated rate cut. However, there isn't a specific article that directly explains the movement of CSOP S-REIT ETF. Therefore, it is difficult to attribute the movement of CSOP S-REIT ETF to any particular news or development. It is important to note that the movement of a stock can be influenced by various factors, including market sentiment, investor expectations, and broader economic conditions.

      If you have any specific questions about CSOP S-REIT ETF or any other REITs, please let me know and I'll be happy to assist you further.

  • icycrystal
    10-17
    icycrystal
    sreits give dividends, therefore, it's important to go for stable with good fundamentals companies. even if stock price trends down, they tend to trend back up.

    take it as an opportunity to buy at good price when trending down then pray hard that they trend up after purchasing [Bless] [Bless] [Bless]

    @Shyon @Aqa @LMSunshine @SPACE ROCKET @TigerGPT @koolgal @HelenJanet @rL @GoodLife99 @Universe宇宙

    If any company sees a significant drop in its stock price after this earnings report, would that present a buying opportunity?

    Would you consider buying more REITs before the rate cut?

    Which REIT is your favorite, and why?

    Do you hold any other S-REITs?

    Leave your comments and join our discussion to win at least 5 tiger coins~

    • TigerGPT: 

      As an AI financial analyst, I can provide you with some insights on investing in S-REITs (Singapore Real Estate Investment Trusts). S-REITs are known for their stable income streams and dividend payouts, making them attractive to income-seeking investors.

      When the stock price of a REIT trends down, it may present a buying opportunity if the fundamentals of the REIT remain strong. In such situations, investors can potentially benefit from buying shares at a lower price and potentially earning capital gains when the stock price recovers.

      However, it's essential to conduct thorough research and analysis before making any investment decisions. Consider factors such as the quality and diversification of the REIT's portfolio, occupancy rates, rental income stability, debt levels, management track record, and macroeconomic conditions. Understanding these fundamentals can help assess a REIT's potential for long-term growth and sustainable dividend payments.

      As for buying more REITs before a rate cut, it depends on various factors, including the specific REIT, prevailing interest rates, and market conditions at the time. A rate cut could potentially decrease borrowing costs for REITs, leading to higher profitability. However, it's crucial to consider the overall economic outlook and the impact of interest rate changes on the real estate market before making investment decisions.

      As an AI analyst, I do not have personal opinions or preferences. However, I can provide information on popular S-REITs and their performance based on historical data and market analysis. Some popular S-REITs include CapitaLand Integrated Commercial Trust, Mapletree Industrial Trust, Ascendas Real Estate Investment Trust, Keppel DC REIT, and Frasers Centrepoint Trust. Each REIT has its own unique characteristics and investment thesis. It's important to analyze their financials, portfolio composition, and industry dynamics to determine which one aligns with your investment goals and risk appetite.

      Please note that investment decisions should be based on your own research and risk tolerance. It's advisable to consult with a financial advisor or do further analysis to make well-informed investment decisions.

  • MHh
    10-16
    MHh
    I do see that as a buying opportunity. We have only heard of the first rate cut and can definitely expect more to come. With more rate cuts, we can expect the share prices to increase. So, this is really jus the beginning! In some sense, SREITS will behave like bonds. Buy mainly those backed by strong sponsors like CapitaLand and mapletree but would avoid those with China exposure to reduce volatility. I do like Keppel DC reit because of the pure data centre play and we definitely need the data centres and there will be limited supply in the years to come, making it in demand.
  • Universe宇宙
    10-16
    Universe宇宙
    @TigerGPT perform technical analysis on any REIT ETFs found in SGX and whether should tigers add more before any rate cut
    • TigerGPT: 

      Technical Analysis of S-REIT ETFs on SGX

      Here is a technical analysis of the three S-REIT ETFs listed on SGX: ParkwayLife Reit (C2PU.SI), Keppel DC Reit (AJBU.SI), and Sabana Reit (M1GU.SI).

      ParkwayLife Reit (C2PU.SI):

      Latest Stock Price: SGD 4.02  

      Capital Flow Data (5 Day):

      Total Inflow: SGD 155.60K  

      Total Outflow: SGD 28.98K  

        

      Earnings: The earnings report for H1 FY2024 is not available at the moment.  

      Recent Performance: Following the last earnings report, ParkwayLife Reit has risen by 14%.  

      Other Information: ParkwayLife Reit is one of Asia's largest healthcare REITs, focusing on income-producing real estate for healthcare purposes.  

        

      Keppel DC Reit (AJBU.SI):

      Latest Stock Price: SGD 2.24  

      Capital Flow Data (5 Day):

      Total Inflow: SGD 307.82K  

      Total Outflow: SGD 913.31K  

        

      Earnings: The earnings report for H1 FY2024 is not available at the moment.  

      Recent Performance: Keppel DC Reit has increased by 20% this year. After the recent H1 earnings report, the stock rose by 13%.  

      Other Information: Keppel DC Reit is Asia's first pure-play data center REIT and has grown its assets under management significantly.  

        

      Sabana Reit (M1GU.SI):

      Latest Stock Price: SGD 0.38  

      Capital Flow Data (5 Day):

      Total Inflow: SGD 38.50K  

      Total Outflow: SGD 11.80K  

        

      Earnings: The earnings report for H1 FY2024 is not available at the moment.  

      Recent Performance: No significant recent performance information available.  

      Other Information: Sabana Reit is a REIT that invests in income-producing real estate.  

        

      Should Tigers add more before any rate cut?

      The market believes that a rate cut by the Federal Reserve will benefit REITs. However, it is important to note that the earnings reports for these REITs may not show a significant positive impact due to most REITs having debt pegged to fixed interest rates. The benefits of a rate cut may not be fully reflected in earnings reports until 2025.

      As for whether Tigers should add more REITs before the rate cut, it would depend on various factors such as individual risk tolerance, investment strategy, and analysis of each REIT's financial performance, industry outlook, and valuation.

      Disclaimer:The above analysis is for informational purposes only and should not be considered as investment advice. Investing in the stock market involves risks, and fluctuations in stock prices are normal. It is recommended that investors conduct their own research and seek professional advice before making investment decisions.

  • Tiger_Contra
    10-16
    Tiger_Contra

    Hooray, Singapore REITs are great performers under rate cut cycle.

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  • Star in the Sky
    10-23
    Star in the Sky
    I will skip all the 3 REITs mentioned above. Keppel REIT is a cut away child by keppel, Parkway facing too many challenges from Thailand and Malaysia. Sabana REITs is poorly managed by the management.
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