From the weekly chart, we can clearly see that suntec reit has been in a downtrend over the past two month. The average price to book value for retail reits is 1. One question that i did not have the chance to ask, when pricenav is below 1, it means that the price value is less than the asset value of what the company owns at the moment, but how is that then that the price is considered overvalued. Dec 31, 2019 suntec reit is part of real estate investment trusts business, which is part of financials industry. In singapore, its portfolio consists of suntec city, which includes one of the largest convention centers and retail malls in singapore, along with stakes in one raffles quay, mbfc properties, and the development at 9 penang road. Suntec real estate investment trusts book value per share for the fiscal year that ended in dec. Stock analysis research and articles on this site are for the purpose of information sharing and do not serve as recommendation of any.
Listed on 9 december 2004 on the main board of the singapore exchange securities trading limited sgxst, suntec real estate investment trust suntec reit is the first composite reit in singapore. Click here to find out singapore reits portfolio advisory. Reits in singapore 2020 moneysmart guide to investing in. Structure, analysis and strategy garrigan, richard, parsons, john on.
Want to learn more about reits listed on the singapore exchange. Simply enter your email below to download the 5 singapore reits that consistently increase their dpu for your watchlist. I used the word decent because that is the average of office reits in singapore. The average price to book value for office reits is 1. You can find all the full analysis about reit in singapore. For credit ratings that are derived exclusively from an existing credit rating of a program, series, categoryclass of debt, support provider or primary rated entity, or that replace a previously assigned provisional rating at the same rating level, moodys publishes a rating announcement on that series, categoryclass of debt or program as a whole, on the support provider or primary rated. Reit information including dividend yields, gearing ratio. Find market predictions, t82u financials and market news.
Jan 24, 2020 suntec real estate investment trusts sgx. Analysis on suntec reit the rationale for this stock research arises from my recent decision to invest in a reputable reit with a consistent track record of cash distribution per unit dpu. The office reit with the lowest price to book value is suntec reit at 0. Over the last 15 years, we have built a strong portfolio comprising high quality assets in singapore and key cities in australia and we remain focused in creating value for our. We strive to deliver timely and accurate news, data and information on reits and property trusts listed globally. Suntec real estate investment trust t82u quote morningstar. Suntec reit technical analysis and fundamental analysis. As a summary, here are the 10 steps i use to pick the best singapore reits. T282u, another longterm investment of mine, released their annual. Stock analysis for suntec real estate investment trust sun. While book values will probably be lifted, asset management fees could. Generally, it is relatively safe to sit on the short side.
Suntec reit is part of real estate investment trusts business, which is part of financials industry. As the interest in reits grows, so does the need for an indepth, reliable, yet accessible resource for understanding these investments. The beauty of reits, for income investors, is that they are required to distribute 90% of their taxable income to shareholders annually, in the form of dividends. However, when compared against its fiveyear average pb ratio of 0. Is there still value in suntec real estate investment trust. Suntec reit is a commercial reit that focuses on offices and, to a lesser extent, retail properties. Ocbc investment research weekly s reits tracker exhibit 1. Suntec real estate investment trust credit rating moodys. T282u, another longterm investment of mine, released their. Listen to our interview with brad thomas on the sure investing podcast.
It might be better to avoid suntec real estate investment trusts. Is suntec real estate investment trust or mapletree. This comes after chan accomplished a deep dive into suntec mall and identified easy wins to improve the malls performance, in songs view. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by ft and is not intended to be relied upon by users in making or refraining from making any specific investment or other decisions. Its portfolio comprises office and retail properties in singapore and australia. Simply enter your email below to download the 5 singapore reits. It also allows investors to gain access to valuable properties too large for any individual investor. The sweet retirement blog was created to share my journey towards achieving a comfortable retirement life.
We, like all sellside analysts, were blindsided by suntecs past performance and missed the 30% share price rally in 2017. For the past two weeks, suntec reit rebounded strongly without any deep pullback. In this way, a reit stock is similar to any other stock that represents ownership in an. Suntec real estate investment trust suntec reit and mapletree commercial trust mct share quite a few similarities between them. In theory, if the priceto book value is less than 1, a reit is trading for less than its worth. In light of the organic earnings growth and attractive valuation, rhb is ranking suntec reit as its top pick in the commercial reit sector. Any of his editions are worth a read as they have long been considered the definitive guides to reit investments for both individual and institutional investors. Suntec reit paid a total dividend of 280 million sgd last year, for a market value of 5,148 millions market cap 3,765 millions. Close of suntec reit s transfer books and register of.
Measures the market price of share price over the value of companys assets expressed on the balance sheet. Dec 17, 2018 suntec real estate investment trust suntec reit and mapletree commercial trust mct share quite a few similarities between them. Download our current and past reports in pdf format. The following is an analysis of two compelling factors, and one emerging concern that investors may want to take note of with regards to suntec reit. Singapore reits, or more commonly known as s reit are famous for their high yields in singapore. Singapore including stock price, stock chart, company news, key statistics, fundamentals and company profile. The analyst also argues that reits with office exposure, such as suntec reit, should trade above book value with a multiyear upturn in. Reitsweek is a publisher of news and data on reits, and securitised real estate investments. Listed on 9 december 2004, suntec reit holds properties in suntec city, singapores largest integrated commercial development including one of singapores largest shopping mall, a 60. Find the most relevant information on reit stocks and reit investing from. Suntec reit annual report 2014 by razorshark design issuu.
Real estate investment trusts reits, which provide some of the best total returns in the investment world, along with aboveaverage dividend yields and stable earnings, have become increasingly popular with both individual and institutional investors. Name price distribution yield price to book dpu nav property yield gearing ratio. The reit with the highest price to book value is keppel dc reit at 1. Jan 16, 2020 i took time to look at the statistics of this reit. Suntec reit seems to fit the bill and hence, this shall be my first analysis on this venerable sgx stock.
I see that as an affirmation of their company strength and credit rating even though it does not fulfil my investment criteria. We believe suntec reit s portfolio could be revalued higher at the end of the financial year. Maybank kim eng research 20150701 real estate sector part 5. Listed in 2004, suntec real estate investment trust suntec reit derives income from a portfolio of prime properties, comprising of a retail. Oct 19, 2019 another factor of consideration is the quality of the management in strategizing growth for the company. Singapore reits charts my stocks investing journey. The office segment comprises of suntec city, park mall, and pacific highway. Real estate investment trusts, fourth edition does exactly that. April 8, 2020 april 8, 2020 my sweet retirement leave a comment this morning, i read that st engineering has cancelled its dividend payout from a post in an investing forum. View live suntec reit chart to track its stocks price action. Mar 27, 2015 in addition, an executive summary of suntec reits performance is furnished to the board on a monthly basis. However, we believe the rally can be sustained from current levels, as we now have greater confidence in ceo, mr chan.
So, book value and related ratios like priceto book often dubious in regard to general equities analysis are pretty much useless for reits. The firm operates through the following business segments. My sweet retirement personal views on stock investment. All content on is for your general information and use only and is not intended to address your particular requirements.
The new fourth edition of the definitive handbook on investing in real estate investment trusts reits. This report, which consists of key financial figures, keeps the board informed of. Jul 26, 2018 in the wake of the quarters results, suntec reit finished its trading day on 26 july about 0. Suntec reit share price, stock quote, gearing ratio. Suntec real estate investment trust welcome to real. Top 10 singapore reits that made you money if you invested from their ipos updated 2020 by rusmin ang on february 18, 2020. The office reit with the highest price to book value is manulife us reit at 1. Sep 30, 2019 listed on 9 december 2004 on the main board of the singapore exchange securities trading limited sgxst, suntec real estate investment trust suntec reit is the first composite reit in singapore. We maintain our buy call on suntec real estate inv trust sgx. Jul 24, 2015 suntec reit is one of the largest companies in singapore.
Suntec reit dividend yields history across the years. Real estate investment trust, or reit, are great instruments for income investors. Suntec reits office portfolio rents have been on an uptrend, with six consecutive quarters of positive rental reversions, which should contribute positively to earnings, natarajan says. During the crisis, i have picked up ocbc bank, singtel, us manulife reit and. Learn about t82u with our data and independent analysis including price, star rating, valuation, dividends, and.
Stock analysis research and articles on this site are. The singaporelisted real estate investment trust acquired the property from milligan group. Peer comparison singapore reits price mkt cap float fye dpu curr dpu fwd dpu curr yield fwd yield ytd return da pb. Hi kenny, thank you for the recent workshop that was conducted with otcs, it was very informative. Should you invest in suntec real estate investment trust sgx. Some insights of suntec reit s portfolio, tenants and net property income from their annual report and key pointers to take note. Suntec real estate investment trust published this content on 24 april 2019 and is solely responsible for the information contained herein. In return, reits typically do not pay corporate taxes. Suntec reit is trading below 20d, 50d and 200d sma. Notice is hereby given that the transfer books and register of unitholders of suntec real estate investment trust suntec reit will be closed at 5. Listed on the singapore stock exchange in 2004, suntec real estate investment trust suntec reit is one of the pioneer real estate investment trusts in singapore. This is a useful analysis and should convince more people to invest in reits.
What is the best book to start learning about reits investment. Stock analysis research and articles on this site are for the purpose of information sharing and do not serve as. Suntec real estate investment trusts, or suntec reits, fullyear 2019 results were in line with our expectations. Suntec reit is a company from singapore, and his stocks are publicly traded. The analyst also argues that reits with office exposure, such as suntec reit, should trade above book value with a multiyear upturn in singapore office rents on the horizon. Welcome to my investment blog where i share with you my analysis of reits in singapore. As there is mounting evidence of a sustained turnaround at suntec city mall, spot office rents maintaining an upward trajectory and underlying dpu to improve by 3% p. The writer, jun yuan lim is a veteran community member and blogger on investingnote, with username known as ljunyuan and has 886 followers.
Thus, if i use ocbc securities margin loan guidelines as my guide, ocbc securities is willing to lower their loan interest rates on suntec reit to 3. Top 10 singapore reits that made you money if you invested. See our latest analysis for suntec real estate investment trust. Since early 2018, more sellside analysts have joined us in being bullish on suntec reit. I am a strong believer that an early and comfortable retirement can be achieved by value investing and accumulation of passive income through stocks that pays stable and consistent dividends. The retail reit with the lowest price to book value is lippo malls indo retail trust at 0. Suntec reit is a company from singapore, and his stocks are publicly traded suntec reit paid a total dividend of 280 million sgd last year, for a market value of. If so, picking the right reits that have stable and growing dpu is key to growing your passive income. Latest information on reit stock investing, reit stocks, including reit etf, healthcare reit, hines reit and others. Blocks investing in reits is in its fourth edition.
Another factor of consideration is the quality of the management in strategizing growth for the company. Suntec reit looks undervalued since its pb ratio is below 1. Today, we will show you how you can own real estate through an investment vehicle called real estate investment trust reit. Singapore suntec real estate investment trusts suntec reit manager has closed the book of orders for its private placement of new units in the reit. Suntec real estate investment trust engages in the ownership of incomeproducing real estate, which is primarily used for retail and office purposes. Their priceto book ratio also seems to be very high at 1. Suntec real estate investment trust is a singaporebased company, which is engaged in investing in income producing real estate and real estate related assets, which are used for commercial purposes, with the primary objective of achieving returns from rental income and for longterm capital growth. You are required to enter your iwealth login credentials to download. Far east hospitality trust far east hospitality trust feht ipo at 2012 with much fanfare as one of the first hospitality trust to be listed in the singapore exchange backed no less by the richest family in singapore far east organization. Suntec reit suntec has a portfolio of office and retail properties in. Want to invest in singapore reits but dont know where to start. At that moment, i was shocked as so far no companies had announce dividend payout and cancelled it. Full analysis on singapore reits value invest asia.
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