Dan | Income, Investing & Planning

United Hampshire US REIT is a retail REIT with 100% of its operations in the US. Under normal circumstances, I'd have avoided the REIT completely but given the nature of their properties, performance and depressed valuation, I believe investors who are looking to take on higher calculated risk to enhance their income yield can consider. More details are in the report!

Far East Hospitality Trust is a hospitality REIT that was listed in 2004 and owns 13 hospitality properties across Singapore. Overall, I'm quite impressed with their balance sheet but I'll probably not start a position in it given their current valuation and also my bias against hospitality REITs. More detail are in the report.

Cromwell EU REIT released their FY 2023 results on 26 Feb of which the numbers looked better than I anticipated (perhaps I was being too pessimistic over the region). More details are in the report

CDL Hospitality Trust is definitely a familiar name among seasoned investors given that they were listed back in 2006. After going through their financial statements, I would give this counter a miss as there are a few red flags that I would not want to be involved in. For investors who are looking for a short term hospitality REIT exposure for a potential recovery play, there are much better counters readily available in the SGX. More details are in the report!

CDL Hospitality Trust is definitely a familiar name among seasoned investors given that they were listed back in 2006. After going through their financial statements, I would give this counter a miss as there are a few red flags that I would not want to be involved in. For investors who are looking at a potential short term hospitality REIT exposure, there are much better counters readily available in the SGX. More details are in the report!

Updated for FY 2023 performances. While DPU appeared to be resilient (thanks to non-recurring contributions), Keppel REIT is not spared from the impacts of high interest environment. Investors should pay attention to the operational performance in the next few years to avoid a potential double whammy in share price when the non-recurring items becomes absent. More details are in the report!

Arguably one of the better hospitality REIT listed in Singapore. I think CLAS is worth considering as a strategic allocation given the management’s record but only after their performance had stabilized and a base case scenario can be formed for the operating income. In the short run, CLAS might still be worth considering as a recovery play, similar to most of the other hospitality REITs, as current occupancy rates are still well below their pre‐covid levels which presents more room for performance improvement at current capacity. More details are in the report!

I've nothing much to say on Fraser Hospitality REIT. I've never been a fan of hospitality properties given their cyclical nature but in this case, I think investors can consider investing in FHT as a potential recovery play. That being said, there are a few key considerations - i.e declining minimum master lease rental - that investors should pay attention to. More details are in the report!

Suntec REIT announced its financial year 2023 results recently and, unfortunately, they are badly affected by non-desirable capital management and the impact of higher interest rate environment. While the management is taking active steps in addressing their capital management, the share price is still currently trading at levels beyond my comfort - given that a good part of their DPU is supported by non-recurring items and non-cash accounting methods. That being said, at the right price, I still think Suntec REIT is worth considering given the quality of its local properties. More details are in the report

Studying Sabana REIT is like reading a drama novel. While the REIT's performance has been stable in the past 5 years, there has been a lot of bad reputation pertaining to the REIT's manager who got voted out last year. Along side with other factors, I'd not consider investing in Sabana unless it is deeply undervalued with high margin of safety. More details in the report.

ESR LOGOS REIT is a local industrial REIT that I really have nothing much to say on. Personally, I wouldn't consider starting a position in this counter given their track record but I think it might be worth paying attention to the performance of the REIT as they undergo their portfolio rejuvenation. More details in the report.

Yet another beaten down European REIT (-60%). Elite Commercial REIT is an office REIT that has over 150 properties in United Kingdom. Unlike other European REITs that I've seen thus far, Elite Commercial REIT's case is an interesting one as the majority of their property are leased to the UK government (double edged sword). On the flip side, their gearing ratio is a cause for concern in a property market that is currently depressed. Investors with a large enough risk appetite can consider this counter for a tactical allocation while receiving double digit dividend yield. More details in the report!

Cromwell European REIT is a Singapore listed REIT with a 100% office and industrial exposure in the Eurozone. In the last few years, the share price has been beaten down severely (-50%) as a result of the headwinds in the EURO zone and a higher interest rate environment. Despite the headwinds, the operating performance of Cromwell REIT has proved to be more resilient than expected which presents a potential undervalued opportunity. More details in the report!