CBD office rents continue to fall in 1Q2013

CBD office rents continue to fall in 1Q2013

In its latest quarterly report, Colliers International says the leasing market for the office sector in the CBD remained muted in 1Q2013. Rents in CBD offices fell 0.7% to $8.41 psf, versus 0.5% in 4Q2012. Take-up of new office space remained slow, with most leasing deals secured for smaller space users of 20,000 sq ft and below. Average monthly gross rents in surburban and city-fringe offices held steady at $4.53 psf as more companies moved to more cost-effective locations.
Read more...

Industrial rents continue to grow [feedly]

 
 

Shared via feedly // published on The Edge Singapore RSS Feed // visit site

Industrial rents continue to grow

Despite a weaker manufacturing sector, average rents for hi-tech industrial space increased q-o-q in 1Q2013, while rents for conventional industrial space and business parks remained steady, says property consultancy DTZ in its quarterly report on industrial properties. Hi-tech industrial rents rose 3.3% to $3.10 psf per month in 1Q2013, after two quarters of flat growth.
Read more...

Visit website

Sent via feedly // A news reader for creative minds.

Best time for REITs

1) Interest rate is low means financial cost is low
2) property price high, if price drops, have to raise equity to reduce debt ratio
3) PB at 1.2 level, only property keeps appreciating can support it
4) Vacancy rate consider as stable (URA data), 6.7%. But for good REITs I am holding, 97% plus, hard to further increase.

Although yield is still attractive, but compare with potential capital loss, no point to buy now.

Reference:
http://www.sharesinv.com/articles/2013/02/26/are-singapore-reits-still-attractive/

Dividend growth of REITs

Just checked dividend history of singapore REITs, the dividend growth is very low, ~0.2% per year. In general, it won't be far away from GDP growth. So the investment strategy for REIT is to go in at downturn, ensure the dividend yield is acceptable for long term at enter point, eg. >8%.
The best timing is crisis, when dividend yield soar to >15%! So even consider 0.2% growth, every year still can enjoy the initial yield.

Buying price is important, especially REITs.

REIT should buy at lower than Book value

Because REIT need to pay out almost all earnings, so suppose they can only maintain value at book value, so lower than book value is necessary for safety of margin.

REIT

CapitaMall Trust (CMT SP, $1.89, TP $2.32, BUY) –CMT has declared an FY10 DPU of 9.24 cts. This is on the back of a 5.9% yoy growth in its net property income, while the amount available for distribution grew by 8.1% to $304.9m, in line with our expectations. For prudence sake, CMT will retain $10.1m for distribution in FY11. With forward yields of at least 5.2% and rising, CMT could be an alternative inflation hedge. Reiterate BUY. (UOB Kay Hian, 21-Jan-2011)