Analysing REITS

[cfa]

Some landlord may grant 1 to 3 months free rental period to tenants for renovation, so it all depends what they agreed.

[Stockerman]

NAV might be adjusted down if the valuation of properties drop?

With QE tapering followed by interest rate hike, capitalization rate will only go up from here. Cap rate up and so valuation will drop, and so NAV will drop.

Tink it may start to get very speculative fr here onwards, any gd news reported on US job data=> speculatation interest rate goes up,REIT falls, bad news reported=>REIT spike up..

Shd Divested REIt, sector reprofiling/rotation..wait for reit to nearer to NAV again then buy again? Of cos,if it nv reaches near nav value,means sector rotation again out of high dividend yield stock?

but suntec n starhill is looking v gd bargain as it well below nav?

[Penguin Papa]

Vickers is all out to defend REITs with a 20page report.

Wonder if it will make wonder in this sector.

http://www.remisiers.org/cms_images/rese...110613.pdf

[BlueKelah]

Vickers is all out to defend REITs with a 20page report.

Wonder if it will make wonder in this sector.

http://www.remisiers.org/cms_images/rese...110613.pdf

Haha they are not able to run fast enough? trying to delay the drop so that they can divest

[Stockerman]

there is already de facto monetary tightening for most of the world economy at a time when there are still concerns on growth.
Hence, REITS will continue to slide...

********
Since the beginning of May, the median increase in 10-year local bond yields in 47 major economies (developed and emerging) has been 39 basis points. But it's been driven by a backup in Treasury yields that was sparked by renewed fears about the Fed's next move, notes Citibank's Steven Englander. It's created a de facto monetary tightening for most of the world economy that was neither expected nor desired at a time when growth concerns remain, and EM currencies are bearing the brunt, Englander says. "The upshot is that we may continue to see pressure on commodity and EM currencies until asset market conditions stabilize," he says. (matthew.walter@dowjones.com; @mbwalter4)


(END) Dow Jones Newswires

June 12, 2013 10:27 ET (14:27 GMT)

[BlueKelah]

as far as I know we should follow SOROS and buy gold...

what a nice palindromic name he has

[Greenrookie]

Maybank has a research report on reits, thought it is a rather good report, and make comparison a breeze

(see attached, link does not work)

surprising with all the negativity surrounding industrial reits, its has the lowest YoY fall, and lowest fall from peak.

Slide 9 to 11 are particularly interesting, all the reits that have weight av term to maturity of more than 3 years are all the big names blue chip parents reits, capital management prudence?

[KopiKat]

MayBank Kim Eng Report dated 20-Sep-13. Interesting graphs which may help clear perceptions of which REIT had been performing better / worse,

[Image: alozg4.jpg]

[Greenrookie]

MayBank Kim Eng Report dated 20-Sep-13. Interesting graphs which may help clear perceptions of which REIT had been performing better / worse,

[Image: alozg4.jpg]

The worst performers could be worth a second look to see if the fall is justifiable.

Overseas assets seem to be the main factor hanging on ppl mind, I know Keppel Reit yield super cannot make it the last time i took a closer look (Even after heavy selloff), I am quite interested in Ascendas though, but might have to pass to prevent over-concentration in reits

[corydorus]

Not sure this table helps in this context. Why are we measuring REITs by capital gains ? People who invest in Reits go for yields. We can try to time our entry but if you are out for a period of time such as cash, the time for waiting is your yield loss too.

Furthermore for Fed to taper, the economy has to be much stronger which may also mean better rental price to keep a closer pace with rates up.