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04-09-2012, 05:14 PM
(This post was last modified: 04-09-2012, 05:15 PM by WolfT.)
If one day everything can be bought online!
are all the shopping reits going to go bankrupt?
Old folks cannot visualise but ask around the younger gen...
The way reits keep increasing their rents, it will only drive towards that direction!
Btw i avoid all reits.. call me bias
The thing about karma, It always comes around and bite you when you least expected.
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Hi guys
As an investor in REITs, I would like to add my 2 cts to the discussion. IMHO, there are REITs and there are REITs. And there is timing....
As pointed out by d.o.g., K-REIT was an excellent example of a REIT one should be wary of. But does that mean that one cannot make money from it? Personally, I invested in K-REIT during the GFC when it was trading around 60+ cts (my hazy memory). At that price, the yield was around 15%. As highlighted by d.o.g. when it traded to around 1.20, there was a 1 for 1 rights issue without a corresponding acquisition of property. To me, the message was clear. Don't hang around for the slaughter and I cut my position to zero at around 1.15 - 1.20, i.e. that was sufficient time to get out because the share was supported by the underwriters / other investors. Subsequent event that took place, => K-REIT sold valuable freehold properties back to Kepland for a song, make my blood run cold but supported the decision to close my position.
On the other hand, I have a great experience investing in First REIT. Truth be told, I only started investing when it was languishing below 40 cts. It too, has a massive rights issue some time in late 2010. However, shareholders can share with you that they made money and the acquisition was yield accretive. I had too many rights and regretfully (on hind sight), sold some of them. At the moment, I believe that First REIT is getting expensive and I have been selling down my position. {But what do i know? I sold my Parkwaylife REIT at 1.20-1.30 and now it is almost 2.00}
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as a matter of principle I don't think we should avoid REITS, but the embedded leverage/distribution strategy is sometimes discounted by the general crowd chasing pure yield. so as long you find a good way of valuing a REIT versus the alternative investments available to you I think it's fine to invest in REITs.
<not vested in any REITs at the moment>
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REITs are risky financial instruments. They are suitable for investors knowing them and willing to take the risk.
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(04-09-2012, 05:14 PM)WolfT Wrote: If one day everything can be bought online!
are all the shopping reits going to go bankrupt?
Old folks cannot visualise but ask around the younger gen...
The way reits keep increasing their rents, it will only drive towards that direction!
Btw i avoid all reits.. call me bias
Shopping is not ONLY bought stuffs, there are many other values  Wife will definitely able to elaborate more...
Beside that, shopping in mall also serve as family events nowadays, where parents and kids are able to enjoy the fun together.
Online shopping will make REITs go bankrupt, i really doubt so...
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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There are lots of investors using REITs as investment vehicles for passive income strategy and many of them blog about it.
But, due to the high debt nature of most REITs, it is in fact quite a risky strategy if the investors are dependent on the passive income for daily expenditures.
If I am pursuing a passive income strategy, I will prefer companies with low debt and high cash. At least, it requires a few lightning strikes(bad debts, drop in revenue, lower profit margin etc) before the dividend is gone + calling for right issues in bad times.
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Relax ...It is just my opinion.
The only shops that may stay may only be the restaurants.
Hack..They may even do delivery too
Ntuc/cold storage will be scale down because brands like unilever, johnson and johnson starts their own delivery services. Maybe only left fresh fruits,meats and dairy
I am not predicting the future but just a thought, i love to let my thought run wild,anythin is possible!
My niece bought everything online, i see the possibility!
Hmmm maybe i should set up a online service for this...
The thing about karma, It always comes around and bite you when you least expected.
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(04-09-2012, 05:52 PM)WolfT Wrote: My niece bought everything online, i see the possibility!
But does your niece go hang out in the Mall with her friends? =)
In the midst hanging out in the Mall, does she spent money in the Mall from all the temptations, from food to cute things to entertainment etc... etc...
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(04-09-2012, 07:46 PM)flinger Wrote: (04-09-2012, 05:52 PM)WolfT Wrote: My niece bought everything online, i see the possibility!
But does your niece go hang out in the Mall with her friends? =)
In the midst hanging out in the Mall, does she spent money in the Mall from all the temptations, from food to cute things to entertainment etc... etc...
My concern is not those younger gen.
It is those middle class who spend the most money.
If given a choice for the same thing but cheaper what would u do?
Thats why i say maybe only the restaurants or cinema survive.
The time when brands like mango,zara,esprite starts doing online...
The thing about karma, It always comes around and bite you when you least expected.
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(04-09-2012, 08:15 PM)WolfT Wrote: My concern is not those younger gen.
It is those middle class who spend the most money.
If given a choice for the same thing but cheaper what would u do?
Thats why i say maybe only the restaurants or cinema survive.
The time when brands like mango,zara,esprite starts doing online...
Interestingly enough, this was in the news just a couple of days ago. I don't think online shopping will ever replace the real thing. At least not until a sci-fi type virtual reality experience comes along. (full story here)
Gap’s Piperlime Whips Web Into Reality With SoHo Store
Piperlime, Gap Inc. (GPS)’s online-only fashion boutique, is replicating its website in the real world with its first physical store next week as the biggest U.S. specialty-apparel company looks to spur growth in North America.
The 4,000-square foot store, set to open Sept. 6 in Manhattan’s SoHo neighborhood, is designed to evoke the 21st- century sensation of walking into Piperlime.com.
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