HK REITS

[butcher]

thanks soros, anybody knows of any website or blogs that tracks HK listed REITs ?

[ckwok]

a recent recommendation of SGX listed reits

http://skyapex.com/forum/market-reports/...150803#247

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.

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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.

[soros]

Closing Prices on 30th Sept 2015

00405.HK - Yuexiu Reit $3.93  yld 7.52 %
00435.HK - Sunlight Reit $3.79 yld 5.80 %
00778.HK - Fortune Reit $7,26 yld 5.74 %
00808.HK - Prosperity Reit $2.65 yld 6.15 %
00823.HK – Link Reit $42.50 yld 4.30%
01881.HK - Regal Reit $1.90  yld 8.53 %
01270.HK - Langham-SS $2.71 yld 9.00 % est.
01275.HK - New Cent Reit $3.13 yld 9.11 % est.
02778.HK - Champion Reit $3.86 yld 5.28  %
87001.HK - Hui Xian Reit Y 3.15 yld  8.15 %.
01426.HK- Spring Reit $3.05 yld  8.65%

[ValueMushroom]

Any of the reits above has majority of freehold assets?

[opmi]

Any of the reits above has majority of freehold assets?

Freehold land very rare in HK. Most of it in HK island.

[butcher]

Regal REIT have high yields and most hotels are in HK Island.

[soros]

The 2014 annual report for Regal Reit shows the properties owned by Reit :

On HK Island :

Regal HK Hotel ( covered area 25K sq m.)

Iclub Hotel ( Wanchai) ( covered area 5.5K sq m )

Iclub Hotel ( Sheung Wan) ( covered area 9.6 K sq m )

Iclub Hotel ( North Point ) ( covered area 9.4 K sq m )

On Kowloon & NT :

Regal Kowloon Hotel ( covered area 43K sq m)

Regal Airport Hotel ( covered area 83K sq m)

Regal Riverside Hotel ( covered area 69K sq m)

Regal Oriental Hotel ( covered area 22K sq m)

The problem for Reit shareholders is lack of dividend growth trend. The 2010 dividend was $0.19 and 2014 dividend was $0.16.

[soros]

Any of the reits above has majority of freehold assets?

The only freehold land in Hong Kong SAR  is the site of St John's Cathedral.

Most land on Hong Kong Island  and Kowloon Peninsula south of Boundary St  , was sold to developers on 999 years or 99 year leases renewable for further 99 years .

The land north of Boundary St  and all land areas  up to the border facing Shenzhen (China ) was granted by China in 1898 on a 99 year lease which expired in 1997.   The land north of Boundary St  is now is under a 50 year extension lease expiring in 2047 and occupiers of properties are now paying a low annual ground rent to HK Government.

Nobody ( i.e HK investors) asks if the HK Reits own freehold land before deciding to buy Reit shares. They just want to know if the office and industrial flat rents are rising before deciding to buy the shares .

[Nick]

The key question is whether the years of > 20% rental reversion can be maintained. If yes, HK REITs will be a good addition. If not, the short land lease would be a severe drag of IRR without the underlying organic growth.

[soros]

Closing Prices on 31th Dec 2015

00405.HK - Yuexiu Reit $4.16 yld 7.10%
00435.HK - Sunlight Reit $3.83 yld 5.74 %
00778.HK - Fortune Reit $7.98 yld 5.22 %
00808.HK - Prosperity Reit $2.79 yld 5.84 %
00823.HK – Link Reit $46.40 yld 3.94%
01881.HK - Regal Reit $1.94 yld 8.35 %
01270.HK - Langham-SS $2.84 yld 10.49 % est.
01275.HK - New Cent Reit $2.90 yld 9.83 % est.
02778.HK - Champion Reit $3.88 yld 5.25 %
87001.HK - Hui Xian Reit Y 3.33 yld 7.71 %.
01426.HK- Spring Reit $3.03 yld 8.70 %