REITs

CGS-CIMB analyst Eing Kar Mei opines that CMT remains well positioned to “sail through the tough times and emerge stronger later”, similar to how it pulled through the 2003 SARS outbreak with minimal impact.

Singapore REITs, which offer the region’s highest yields, may be hit harder by the virus than the 2008 financial crisis, according to Jefferies Financial Group Inc.

A large diversified tenant base, long weighted average lease expiries (WALEs), and manageable aggregate leverage levels — coupled with a degree of geographical diversifica-tion with assets that require limited human in-tervention — are likely to be th

According to DBS Group Research, the proposed Bill could create significant cash flow uncertainty for the REITs.

The REIT is supported by its sponsor Sasseur Group. It also leverages the extensive networks of the sponsor’s strategic shareholders, namely L CattertonAsia and Ping An Real Estate.

Unit prices have tumbled in recent weeks on mounting virus concerns and a sell-everything mentality in global markets.

UOB Kay Hian has been involved in at least half of the Singapore IPOs. Choo points out that such a phenomenon is not new at all, and certainly not due to a new worry such as the Covid-19 outbreak.

Real estate investment trusts, especially US REITs listed on SGX, may be in for further volatility. The huge stimulus that the US administration is proposing will have to be funded by debt and that could drive up US risk-free rates r

Since the start of the year, the FTSE Straits Times REIT Index is down 20% compared with the Straits Times Index which has lost 22%. Interestingly, the FTSE EPRA NAREIT Developed Index is down 23%. No surprise then that recent entrants into the FTSE EPRA

With the US Federal Funds Rate rushing towards zero, and 10- year US treasury bonds at their lowest yields ever, the S-REITs with pure US assets should have held up better.