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Analysing REITS
06-12-2016, 09:57 AM.
Post: #501
RE: Analysing REITS
(04-12-2016, 12:12 PM)CY09 Wrote: http://www.jtc.gov.sg/industrial-land-an...sales.aspx

Link for JTC land sales. Click on the 'historical Data on IGLS sites sold by JTC".

As I mentioned previously, valuers working for stat boards often use the "market comparison" or "Cap rate approach" to ascertain the fair value of the land to be sold.

Hi CY09, i think the one that i found is more of how much it cost psf or psm to renew at different areas. there was another time i took 2 hours trying to find it, and when i couldn't i gave up.
Dividend Investing and More @ InvestmentMoats.com

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03-01-2017, 04:58 PM. (This post was last modified: 03-01-2017, 04:58 PM by weijian.)
Post: #502
RE: Analysing REITS
I will put this interesting article under this thread, since it might be related to REITs in general with their asset manager under siege from activists.

Property fund of AIMS under attack from wind-up attempt
http://www.businesstimes.com.sg/companie...up-attempt

1 thing to note is that LIM Advisors mentioned in the article (whom just successfully winded up another AIMS fund recently) had some action on its own in SGX working on MIIF in 2012. IIRC, it was the start of the fund wind-down, which did eventually created value for those who bought at a good NAV discount.

LIM Advisor's action on MIIF:
http://www.prnewswire.co.uk/news-release...93191.html
https://www.valuebuddies.com/thread-843-page-21.html

Latest news out of the AGM today seems to indicate Samuel Terry has failed: http://infopub.sgx.com/FileOpen/Fund%20U...eID=434669

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04-01-2017, 12:01 PM. (This post was last modified: 04-01-2017, 12:02 PM by ghchua.)
Post: #503
RE: Analysing REITS
Yes, STAM had failed because AIMS can vote for this EGM. In the previous successful windup of AMP Capital China Growth Fund, AMP cannot vote.

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01-11-2018, 02:25 PM. (This post was last modified: 01-11-2018, 03:53 PM by weijian.)
Post: #504
RE: Keppel-KBS US REIT
I am (thankfully) not vested, but noticed what a steep cliff Keppel-KBS US REIT has fallen off, from 88c at the IPO a year ago, 78c at the beginning of October 2018, now 56.5c.

REITs have been out of favour this year due to rising interest rates. In the case of this counter, combine that with a bias against REITs with all foreign income, and now a rights issue at a steep discount.

This leads me to ask other VBs what their strategy is when holding REITs and being faced with a rights issue. There are a number of options:

1. Sell the REIT holding cum rights
2. If transferable, sell the rights but keep the original REIT holding
3. Subscribe to the rights
4. Subscribe to the rights and apply for unsubscribed rights

At various times, I have followed each of these routes, depending on the circumstances. I would, however, note that option 4 has often proved a profitable trade, particularly when the rights are at a deep discount. It does mean having to be ready to hold the REIT for a number of years after the rights issue. Typically, the REIT issues rights to expand its portfolio, and it may take time for the new acquisition(s) to be finalised and the additional revenue to be fully reflected in the accounts. As a result, the DPU is often depressed for a year or two.

One side effect of this is that I now generally buy / sell REITs via my brokerage account and hold them directly with CDP, as this is the simplest way of applying for rights/ unsubscribed rights (via ATM).

I anticipate that we will see a good number of rights issues in the REIT space over the next year or two, for acquisitions and to reduce leverage. There were a lot of them in 2009, at the tail end of the GFC.  So, I would be interested to find out how other VBs handle this decision.

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