HK REITS

Closing Prices on 30 March 2012

00435.HK - Sunlight Reit $2.39 yld 7.36%
02778.HK - Champion Reit $3.29 yld 6.81%
00808.HK - Prosperity Reit $1.84 yld 6.59%
00405.HK - Yuexui Reit $4.03 yld 6.58%
00778.HK - Fortune Reit $4.14 yld 6.35%
01881.HK - Regal Reit $1.96 yld 6.12%
00823.HK - Link Reit $28.9 yld 3.82%

HK reits do hv much fancier names against their fellow sporean ones!

Also the HK listed company's dividend is paid in full - No withholding tax is deducted .

Also the HK listed company's dividend is paid in full - No withholding tax is deducted .

I noticed from a SGX Update dated Jan 2012 on Singapore Reits, the average dividend yield is 6.0% during 2011 over 22 Reits ranging from 3.4% from K-Reits to 9.3% for First Reits.

http://www.sias.org.sg/files/SGXMarketUp...y2012.html

For HK Reits , the average dividend yield is 6.23% over 7 Reits.

---

The Malaysia Exchange has 14 Reits listed and average yield is 7.101 % .

http://mreit.reitdata.com/

Since private shareholders are subject to 10% withholding tax on the Reit dividends, the net yield comes down to about 6.3% approx.

(02-04-2012, 02:41 PM)soros Wrote: I noticed from a SGX Update dated Jan 2012 on Singapore Reits, the average dividend yield is 6.0% during 2011 over 22 Reits ranging from 3.4% from K-Reits to 9.3% for First Reits.

http://www.sias.org.sg/files/SGXMarketUp...y2012.html

Something doesn't look very right with the Table in your link. One quick glance shows MCT with 0% 2011 Dividend Yield. Even though they were listed only in 2011, I checked SGX website and found that they'd paid out dividends twice in 2011. The 2011 Dividend Yield for K-REIT and CCT also looked rather low @ 3.xx%. I think the Average SREIT Dividend Yield should be 7%++ (closer to 8% in 2011 and closer to 7% now).

given that Singapore interest rate is so low, it seems that REITs are not getting any benefit from low interest rate in Singapore.

Does that mean, investors are constantly expecting a much higher interest rate, or it is just because of inflation?

I think MAS should look into its method of controlling inflation by exchange rate rather than interest rate. It does not make much sense to me any more. Domestic money supply probably contributes more to inflation rather than international factors, just seeing how property is getting hotter and hotter. How could exchange rate influence Singapore property market or commercial lease market?

(02-04-2012, 03:15 PM)KopiKat Wrote:

(02-04-2012, 02:41 PM)soros Wrote: I noticed from a SGX Update dated Jan 2012 on Singapore Reits, the average dividend yield is 6.0% during 2011 over 22 Reits ranging from 3.4% from K-Reits to 9.3% for First Reits.

http://www.sias.org.sg/files/SGXMarketUp...y2012.html

Something doesn't look very right with the Table in your link. One quick glance shows MCT with 0% 2011 Dividend Yield. Even though they were listed only in 2011, I checked SGX website and found that they'd paid out dividends twice in 2011. The 2011 Dividend Yield for K-REIT and CCT also looked rather low @ 3.xx%. I think the Average SREIT Dividend Yield should be 7%++ (closer to 8% in 2011 and closer to 7% now).

Just checked and noted SGX are quoting incorrect info sourced from Bloomberg - So you should ask SGX to post an apology.

---

Freedom,

If the Reit's yield seems high compared to the level of interest rate offered by the banks , perhaps it shows the public investor recognises the risk of possible capital loss when the main market heads south.

I believe some SG Reits were geared up to higher than safe level before the 2008 financial crash and had to hold a sudden rights issue to raise funding - causing the share prices to fall and pain for some retired investors. But now these reits seem to mostly keep their borrowings to below 40% level and don't have sufficient flow of good news to attract public investor interest to drive the reit share prices northwards.

Closing Prices on 28 Sept 2012

00435.HK - Sunlight Reit $3.09 yld 5.50%
02778.HK - Champion Reit $3.54 yld 6.33%
00808.HK - Prosperity Reit $2.17 yld 5.53%
00405.HK - Yuexui Reit $3.79 yld 6.99%
00778.HK - Fortune Reit $5.91 yld 4.45%
01881.HK - Regal Reit $1.99 yld 6.03%
00823.HK - Link Reit $36.17 yld 3.52%

During the past 6 months , Fortune Reit and Link Reit managed to gain 42% and 25% respectively. The laggard was YueXiu Reit down 6% due to concerns about company financing of recent purchase of new skyscraper building

you left out a REIT that I like a lot: 87001 hk - Hui Xian. Owns Beijing Oriental Plaza - one of the best pieces of commercial property in the city. 2013 yield is above 7% with almost zero gearing. Possible beneficiary of the Dynasty RMB listing in Singapore. Still more positive rental revisions on both retail and commercial.

full disclosure: I own this stock