Author: PropInvestSG

Comparison of REITs with overseas assets vs REITs that focus on Singapore

REITs with overseas assets has become increasingly popular and have proliferated on the SGX in recent years. These REITs span across all sub-sectors from classes from office, retail, industrial to even data centres. As an investor, what are the things to look out for before investing in REITs with overseas assets vs those that focus on Singapore only? We won’t mention REITs that have a mix of Singapore and overseas assets, such as Suntec REIT, because they are more difficult to analyze compared to those solely with foreign or Singapore assets. This difficulty arises because the local/foreign asset mix...

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Keppel KBS US REIT delivers distribution 2.32 US cents

Keppel KBS-US REIT posted their inaugural distribution of 2.32 US cents for the period since listing (9 Nov 2017 to 31 Mar 2018), beating the IPO forecast of 2.31 US cents marginally. According to the REIT manager, the stable portfolio performance and one-off compensation income resulted in net property income of US$22.3m, beating IPO forecast by 5.2%. The one-off compensation was from a tenant at Westmoor Centre in Denver, Colorado, that was granted permission to terminate its lease on 28 Feb 2018, ahead of expiry in mid-2018. Also read: Watch out for Viva industrial REIT’s income support This was...

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Increase in DPU to 1.80 cents for Keppel DC REIT

Keppel DC REIT’s DPU in the first quarter of 2018 increased to 1.80 cents from the same quarter last year, on the back of increased gross revenue and net property income. Following the acquisition of maincubes data centre in Germany, portfolio AUM stands at S$1.66 billion. Portfolio occupancy however was lower at 93.7% compared to 95.1% the same period last year. This was due mainly to a decline in occupancy in Keppel DC Singapore 1 and Basis Bay Data Centre. Aggregate leverage has risen significantly to 37.4% compared to 27.9% in the same period last year. In this regard, the...

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Property news round up 15 Apr 2018

SEVERAL more quarters of private home price increases of the magnitude seen in the first quarter could leave the property market here staring at the possibility of fresh cooling measures, industry players say. While the immediate risk of that is low, the surprise 3.1 per cent quarter-on-quarter (q-o-q) jump in Q1 private home prices has led some in property circles to contemplate how policymakers would respond if the uptrend of similar or even bigger price spikes continues in the next two quarters. “Looking historically, I think the authorities will start to do something when they see double-digit growth in...

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The economics of DIY real estate platforms

DIY real estate has recently become a hot topic on the back of growth in proptech firms. This phenomenon has been caused by the proliferation of DIY portals, availability of information to those in the real estate transaction and ease of convenience with putting up one’s own place. Backed by technology and the widespread adoption of smartphones, every player in the life cycle of a real estate transaction has access to information that was not available just 5 years ago. Historical transactions, check. Buyer and seller guides, check. Landlord and renter guides, check. Regulations and laws protecting various parties...

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Property news round up 8 Apr 2018

THE 3.1 per cent quarter-on-quarter increase in the Urban Redevelopment Authority’s private home price index based on its first quarter flash estimate has shocked most property consultants, who were expecting a rise of 1 to 2 per cent. The rise is the steepest quarter-on-quarter hike since Q2 2010, when the index rose 5.3 per cent. A check by The Business Times among seven property consultants on Monday found that they have raised their forecasts for the whole of this year; where they had previously predicted a rise of between 3 and 8 per cent in the benchmark property price...

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Property news round up 1 Apr 2018

RESALE prices of existing condos and private apartments in District 15, which includes the Katong and Amber Road areas, as well as District 10 have risen significantly following news of the Amber Park and Royalville collective sales last year. Edmund Tie & Co’s caveats analysis of URA Realis data also showed that in some instances, prices of larger units in the resale market have seen a bigger price hike compared with smaller units. Analysts say resale prices of existing homes are being driven up by strong demand for replacement homes by cash-flush individuals and families who have sold their...

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Analysis on Viva Industrial REIT

Viva Industrial Trust (VIT) is a Singapore-focused Business Park and industrial real estate investment trust. The REIT has the principal investment strategy of investing in a diversified portfolio of income-producing real estate that is predominantly for business parks and other industrial purposes in Singapore and elsewhere in the Asia Pacific region. VIT’s current property portfolio covers an aggregate gross floor area of 3.9 million sq ft and is strategically located in key business parks and established industrial clusters with an aggregate valuation of close to S$1.3 billion. Its nine properties serve over 149 tenants with 39.5% of them in...

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Property news round up 25 Mar 2018

CBRE is relocating its main Singapore office to Paya Lebar Quarter (PLQ) in the middle of next year, and hopes to turn the new office into a “living lab” or a showcase for new proprietary technologies. The new office spanning over 30,000 square feet at PLQ will bring together its operations currently at three different locations, including a prime CBD address at 6 Battery Road. But CBRE will still retain a core CBD office to serve clients in the area, said Pauline Goh, chief executive officer of CBRE Singapore and South-east Asia. KEPPEL Corp on Sunday said that it...

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Decline in distribution per unit for Keppel REIT

Keppel REIT’s 4Q2017 results showed a growth in property income and net property income, but due to a rising number of units and decline in distribution to unitholders, distribution per unit fell from 1.48 SG cents to 1.43 SG cents. Looking into the financial statements and comparing 4Q2016 against 4Q2017: Property income rose from S$40m to S$44.4m. This is good. The increase is due primarily to an improvement in other income. Property expenses fell from S$8.6m to S$8.1m. This is marginal but good. Other income fell from S$41.9m to S$32.1m. This is not good. The decline is primarily due...

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Capitaland Commercial Trust DPU up 6.1% in 4Q2017

Capitaland Commercial Trust’s distribution per unit was up 6.1% for 4Q2017 to 2.08 SG cents from 1.96 SG cents. In 2017 on a full year basis, distribution per unit was up 5.0% to 8.66 SG cents compared to 8.25 SG cents in 2016. The increase in distribution per unit is despite a fall of 3.8% and 4.0% in gross revenue and net property income respectively between 4Q2017 and 4Q2016. The decrease in gross revenue was due to divestments of One George Street (50% interest) in June 2017, Golden Shoe Car Park in July 2017 and Wilkie Edge in Sept...

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Condo Hunting around Jurong

The Jurong area is beginning to be developed under the Government’s Jurong Lake District masterplan, and there are many exciting opportunities for property investors to take advantage of. How can one get started? By first understanding the area, the surrounding, the infrastructure developments, buildings in the pipeline, present state of the market and more. This post will seek to shed some light on how the area is developing, and shortlist a few developments that may be worth considering as a play on the development of the area. The Jurong Lake District is a 360 ha area set to become...

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Jurong Lake District property potential

The government has spared no expense in planning for the development of the Jurong Lake District. From the upcoming high speed rail terminus to the taking back of the Jurong Country Club, the area is set to be a very popular work-play-live district. Presently, some of the the well-known retail malls include Westgate, JEM, JCube, Big Box and IMM. Office buildings include those around the International Business Park such as The Strategy, The Synergy and Icon @ IBP. Family friendly amenities include Singapore Science Centre, Jurong Regional Library, Omni Theatre and Snow City. The Jurong District is also set...

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Best performing condominiums in Feb 2018

Based on URA’s data, these are the condominium projects that sold the most number of units in Feb 2018. Queen’s Peak Kingsford Waterbay Artra Grandeur Park Residences Parc Botannia In Queens’ Peak at 1 Dundee Road, 47 units were sold in the month at a median price of S$1,730 psf while in Kingsford Waterbay at Upper Serangoon View, 34 units were sold at a median price of S$1,349 psf. In Artra at Alexandra View, 30 units were sold at a median price of S$1,726 psf and at Grandeur Park Residences in Tanah Merah, 26 units were sold at a...

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Property news round up 18 Mar 2018

TECHPRENEUR Michael Cho believes that the man in the street should have equal access to housing market intelligence as the real estate agent – and for free. That was the motivation that drove him to create UrbanZoom – an online artificial intelligence (AI) enabled research portal that includes an auto-valuation tool and other useful transaction data designed to be user-friendly for home buyers and sellers in Singapore. UrbanZoom is decidedly not a listing portal, since that space is over-saturated, with even the likes of Carousell Pro and Facebook Marketplace having entered the space. This makes it difficult to innovate,...

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