(01-05-2012, 07:04 PM)Traumfanger Wrote: Will this be a safe investment? I have seen a few sites/ bloggers themselves vested in this company.
Hi, on behalf of the moderators, i have to tell you that this is NOT really the place for one to get assurances/guarantees.
In general, equities are NOT 'safe investments', unless you REALLY know what you are doing/geting into. In addition, i am quite sure suntec reit is just one of the many stocks in the portfolio (diversification) of the bloggers you read about. With your current portfolio size, you may not be able to diversify as the other bloggers have done so - so it is better NOT to assume that if another fellow buys, you can do so too.
(01-05-2012, 07:04 PM)Traumfanger Wrote: Will this be a safe investment? I have seen a few sites/ bloggers themselves vested in this company.
Hi, on behalf of the moderators, i have to tell you that this is NOT really the place for one to get assurances/guarantees.
In general, equities are NOT 'safe investments', unless you REALLY know what you are doing/geting into. In addition, i am quite sure suntec reit is just one of the many stocks in the portfolio (diversification) of the bloggers you read about. With your current portfolio size, you may not be able to diversify as the other bloggers have done so - so it is better NOT to assume that if another fellow buys, you can do so too.
The stock market is like the jungle...
Equip yourself with the knowledge and skillset, you'd get a better chance to not only survive, but with experience, even thrive.
Go in without any proper preparations, rest assured you'd get slaughtered any time.
The most dangerous time is when you see everyone feasting on easy preys. Everyone has forgotten that the fierce predators are always around and will appear anytime ... to feast on the easy, fattened prey.. ie. YOU!
Hee.. enough of my nonesense.. Better go pick up some survival skills 1st ie. How to read accounts, How to analyse companies,... etc. Else, high chance you'll lose all your hard earned $$$.
At the evening service tonight (Saturday, July 21), the executive pastor of City Harvest Church, Aries Zulkarnain made two announcements that surprised and delighted the congregation.
These announcements come a week before the church’s annual general meeting. This move is in accordance with the Commissioner of Charities’ suggestion that the church reveals developments in its Suntec investments to its congregation.
The first piece of good news centered on the 2011 Building Fund campaign.
“For our Building Fund campaign last year, we pledged a total of S$23,640,715,” said Zulkarnain.
“By the end of the Building Fund period this year, we had collected S$22,687,651!
“This is a very healthy 96 per cent fulfilment, better than previous years.”
Zulkarnain praised the congregation for standing firm and for staying focused on the mission of CHC.
“To have a place for worship is why we have our Arise & Build Campaign to raise the Building Fund. And because of your giving and your prayers, we have met our objective,” he said. “We have successfully secured a place for our weekly services in the marketplace, for the marketplace, to serve the marketplace.”
Loud cheers gave way to louder applause when Zulkarnain proceeded to reveal that the church’s shareholding in Suntec Singapore International Convention and Exhibition Centre has increased.
“In 2010, CHC, through our wholly-owned subsidiary, Urban Property Investments Limited acquired 20 percent effective shareholding for an aggregate purchase price of S$43,750,000 in Suntec Singapore International Convention and Exhibition Centre in 2010. Last year, it acquired an additional 19.2 percent for a purchase price of S$54,000,000,” said the pastor.
“Together with our acquisition in 2010, CHC now has an effective shareholding of 39.2 percent in the property for an aggregate purchase price of S$97,750,000.
“The balance 60.8 percent effective shareholding in the Property is held by Suntec Harmony Pte Ltd, a wholly-owned subsidiary of Suntec REIT.
“To put it simply, we are co-owners of this property together with Suntec REIT.”
Zulkarnain explained that the S$97,750,000 forms part of the S$310,000,000 budget that was previously announced to the church.
“The balance amount is for the committed rentals; the optional rentals in the coming years; refundable rental deposits; furniture, fittings and equipment costs, and periodic shifting costs,” he said.
The pastor also revealed that initially, with the purchase of this additional stake, the total budget would have reached S$327,000,000, which is S$17,000,000 above CHC’s original planned budget of S$310,000,000 for the property. But this will not be the case.
“We are still able and committed to keep to our original budget of S$310,000,000 because our team has worked very hard to reduce the costs of shifting,” said Zulkarnain.
CHC’s “ownership-and-lease” model uses the share of dividends from the property to fund part of the rental costs for running weekend services.
“We arrived at a budget of S$310,000,000 by calculating the point at which the return of our investments will cover most of the yearly rentals,” he explained.
“CHC intends to eventually become self-sustaining in respect to payments of future rentals.”
Zulkarnain said that the value of the property is expected to increase following the ongoing Asset Enhancement Initiative that Suntec REIT has embarked on for the convention center. Suntec REIT has budgeted S$180,000,000 to carry out upgrading works, which include creating two levels of retail space.
To facilitate this upgrading, CHC will be holding its services for a period of time at Singapore Expo starting September 2012.
The executive pastor ended his announcement with a reminder to the congregation to keep its eye on the true reason for the Suntec investment.
“As we have always said, we are not into building buildings, but we are into building lives. The reason for our existence is to love God wholeheartedly and love people fervently. We are committed to keep serving our members and our community, to fulfill the Great Commandment, the Great Commission and the Cultural Mandate,” he said.
“All we have done these 23 years has been in obedience to God and His call. I want to thank each one of you for your faithfulness and for running this race together as a church.”
Members were pleased with what they heard tonight.
“I am really proud of our members,” said Roslind Yip, 38, a product consultant. “Last year’s Building Fund period was the only one that happened after the investigations began. That the congregation fulfilled over 95 percent of the pledged amount is fantastic news! I don’t think we have seen such high fulfillment rate for a long time. It shows the hearts of our people are really set on God and what He wants for City Harvest.”
“I’m very pleasantly surprised by the fact that CHC holds a 39.2 percent stake,” says Mario Singh, 36, the CEO of FX1 Academy. “Clearly there are only two shareholders—Suntec REIT and CHC. To me, it means that our leadership has done everything it aimed to do, which has always been to use the Building Fund in an intelligent way, investing it so that it keeps growing. So it’s not just increased through the congregation’s giving, but this money is also multiplying itself.”
Student Ng Tze Wei, 13, joined the church with his parents when was he was 6 years old. He has given to every Building Fund campaign in the last seven years. “I sowed into church because I want to build God a great house. And in return, my Children’s Church teachers and friends and now my cell group members have sowed into my life in a great way. I’m really proud to be in City Harvest Church.”
Carrefour Singapore announces the decision to close its Suntec and Plaza Singapura stores before end of 2012, since expansion and growth perspectives do not allow reaching a leadership position in the medium and long term," the retailer said in a statement.
15-03-2013, 05:35 PM (This post was last modified: 15-03-2013, 05:40 PM by yanziyang.)
Something unusual happens today.
In pre-close session at 5:04PM, there are 15,394,000 shares change hands at -3.38% (transaction amount is S$26 millions). That is unlikely to be behavior of normal retail investors.
By the way, Capitaland and Wing Tai also drop substantially in pre-close session.
Anyone knows why Suntec REIT always trades below NAV? Its NAV is $2.05 iirc. Even in the REIT spike it only ever hit $2.
It's retail peers CMT, FCT all trade above NAV. Suntec doesn't do too badly and its offices are always 100% occupied.
I'm wondering if
1) its a lack of diversification since it's main income comes from Suntec(90%), the rest are small compared to it.
2) Its management? But to me it seems like its doing well, its NAV has increased over the years, compared to others like CMT, which has not changed much.
Anyone knows why Suntec REIT always trades below NAV? Its NAV is $2.05 iirc. Even in the REIT spike it only ever hit $2.
It's retail peers CMT, FCT all trade above NAV. Suntec doesn't do too badly and its offices are always 100% occupied.
I'm wondering if
1) its a lack of diversification since it's main income comes from Suntec(90%), the rest are small compared to it.
2) Its management? But to me it seems like its doing well, its NAV has increased over the years, compared to others like CMT, which has not changed much.
Appreciate any opinions.
Best regards
These are just my opinions and guesses.
1) Suntec REIT is not a pure retail REIT like CMT and FCT. Suntec REIT owns offices too. If you notice, commercial REITs like FCOT and CCOT have also very rarely exceeded their NAV too. Probably because of weakness in grade 'A' office rents due to a glut of new supply.
2) During the the so-called 'REITs spike' as you mentioned (in 2012 and first half of 2013), Suntec City was undergoing major renovations. DPU was affected. So assuming investors are only willing to accept around 5% yield, the price remains low.
Anyone knows why Suntec REIT always trades below NAV? Its NAV is $2.05 iirc. Even in the REIT spike it only ever hit $2.
It's retail peers CMT, FCT all trade above NAV. Suntec doesn't do too badly and its offices are always 100% occupied.
I'm wondering if
1) its a lack of diversification since it's main income comes from Suntec(90%), the rest are small compared to it.
2) Its management? But to me it seems like its doing well, its NAV has increased over the years, compared to others like CMT, which has not changed much.
Appreciate any opinions.
Best regards
My 2 cents worth is, in valuation of reits yield play a more important matric than NAV. For suntec to trade above $2 the yield will be below 5percent.
Second, aquisition record is prudent but some might say slow. Years ago, when the potential to buy MFC is there, there is a upward raise in price. Now MFc is sol to suntec Keppel and I can't remember the third landlord, it's parents CK does not own anymore significant property in Singapore. So growth is heavily discounted unlike some other reits which are going on a aquisition spree for sometime.
From reitdata.com, FCT is trading at similar yield of 5.6% to suntec but FCT is trading at 20% above NAV while suntec is trading at 20% discount to NAV.
Assuming they are giving out 100% payout, this implies that the difference lies in the ROE. PE*ROE =PB
This is not equivalent to FCT operating more efficiently than Suntec but as a result of the higher valuation Suntec uses for its property. FCT uses an average cap rate of 5.5 to 5.75% for its properties whereas Suntec uses an average cap rate of 3.2% to 4.5% (MBFC and Park Mall uses 4.5%, Suntec City uses 3.8% and One Raffles Quay uses 3.2%).
Cap rate is Property Value/NPI, thus the lower your cap rate, the more aggressive you are in valuation of property and the lower your ROE.
The difference here is not FCT being conservative, but due to the fact that they are holding different kind of properties. FCT is a pure retail player where cap rate of 5-6% is common while Suntec is 50% office where cap rate is commonly around 4-5%. It is much easier to manage an office property as you don't have to manage the tenant mix, attract the shopper traffic and e.t.c
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