MPACT at 8-Year Low: Time to Buy or Wait?
ฝัง
- เผยแพร่เมื่อ 23 มิ.ย. 2024
- Mapletree Pan Asia Commercial Trust is now trading at an eight-year low. Why has its unit price fallen so much recently? Will its foreign assets (China/Hong Kong) continue to drag the REIT's performance lower?
With its current yield at ~6%, is this an opportunity to pick up a slice of one of our favourite Singapore REITs... or is there more uncertainty ahead? We discuss all this and more in our latest episode.
00:00 Introduction
00:40 MPACT's assets
02:00 Why has its price dropped?
06:05 Are its foreign assets a drag?
18:50 Valuation
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Looking forward to Lendlease analysis!
Great sharing! Thank you!
Thanks for watching, Benjamin!
REITs investors must have the ability to weather through markets like this. That's why diversification is very important. For me, i do see this as an opportunity to either shift from weaker assets to stronger ones and also to slowly increase weightage in REITs that I think can survive this down turn without major structural impact.
My take is the inflation will eventually come down unless there is a war and energy prices shoot up again. Barring that, evidence shows that inflation should be tamed in the next 12-24 months and consequently the interest rates would likely go down. The reversal of sentiments could be quick as well.
Good points!
❤❤video comes just the right time when I need it, thanks mates
Welcome, Paul! 😊
The merger of the two prior REITs was just plain stupid. Everyone could see that.
Yes for now
Quality content, love it!
Glad you enjoy it!
Thanks for sharing.
Thanks for watching!
Any plan to record a video on AIMS APAC & ireit global reits? Thank you.
Can talk about SATS S58?
I would like to ask, how do u measure the performance of a dividend portfolio? Ie. How do you know if your portfolio for this year did better than last year or 2 years back, or even against the performance of someone else’s portfolio? Also, what do you do to increase the dividend portfolio’s performance?
No portfolio can do better every year; there will always be fluctuations year to year. As long as your dividend and overall return grows steadily above the risk-free rate over the long term, you are doing great! As you learn and gain more experience over time, you will improve your performance if you manage your portfolio well.
So is it to say :
1. The reits that have overseas property are at risk currently due to fluctuation of currency against sgd ?
2. Advisable to focus on purely or majority singapore based property reits ? Unless properties that are based in overseas that don't see depreciation against sgd such as the US.
1. Any REIT with a sizeable portfolio of foreign assets has forex risk when converting foreign income to home currency. A good REIT manager will typically hedge this to smoothen fluctuations
2. This is a personal choice based on your investment goals. Some prefer Singapore-only REITs, others may prefer the higher potential growth beyond Singapore.
1. Currency works both ways. If SGD is weak, the results would be otherwise.
Perhaps what’s more important is:
Is my REIT manager securing a property yield higher than the interest rate?
If no, what’s going on?
2. Would it be better to choose a REIT that I understand the most?
My 2 cents 🙂
I think i will ask for at least 7% or 8% yield will be more attractive, as bank already giving 6% yield, so we should demand higher yield on reits that has right issue (which banks dont have)
Love ur contents, how about doing one on Sg focus reits(at least 80% local assets)? Ty and jia you.
Thanks! We did a recent roundtable on CICT here: th-cam.com/video/TFXR8d5wREM/w-d-xo.html
My wife n i been buying n selling Mpnact since 2012 till merger with MCT. Enjoy attractive dividend yield n capital gain along the way . High rate for next 2 yrs will be disaster for USA economy if Feds still don't cut rate in 2H2024. But at same time, my wife n i also buy T-bills n SSB. Which is free lunch from MAS .
Would you say they were forced to merge? because other REITs were merging (ESR + ARA, Capitalands, Frasers). Probably they do not want to be at the bottom of the SG REIT index or worse get kicked out?
There are advantages of a bigger REIT. A larger asset base raises your debt ceiling and gives you more flexibility in acquiring assets to grow for one.
Still going down, 7% yield now :)
Waiting for the MPACT price to drop to 75% of its intrinsic value :D
Are dividends from Singaporean REITs tax free from the singaporean part of the calculation ?
Yes, dividends from Singapore REITs are tax free.
The Manager wanted to increased the AUM so to increase their fees..and reduce their headcounts. Stupid short termism and financial engineering..instead of long term investment
I will all of d reits now, properties may dip another way of inflation again
Loan=100M Yield=5% Year=30
Loan(30 Year)=1.05^30*100M
Loan(30 Year)=440M
Insurans:
Premium=? Yield=6% Year=30
Premium=440M/1.06^30
Premium=77M(Payout=440M)
Balance=Loan-Premium
Balance=100M-77M
Balance=23M(Debt=0).
Note:Equation and exponential Technique.
Thank you.
👍👍👍👍👍👍👍👍👍👍
when rusmin is stressed, he sounds more malaysian
Wait for at least 7% yield, if not 8
I bought some at $1.41 & $1.31 today. Need to wait n collect good quarterly dividend first . I believe Feds will cut rate in 2H2024 . Now benchmark rate at 5.25-5.5% ! USA president election in Nov 2024 . Past data showed low interest rate prior to Election. I might buy some more if price dropped to 0.6 of NTA . Just like keppel reit,which i bought some last week at $0.795. Both counters major shareholders are Temasek .
Has anyone told Rusmin that his voice and mannerisms are a dead ringer for Ong Ye Kung
Hahaha! We gotta tell Rusmin this 😂😂
If we are collecting 6.6% yield consistently for yrs to come wont mind buying at the current price however that is unlikely for a few reasons.
1. The current interest on its debt is 2.7% due to hedging and rates fixed when interest rates are low. When it refinances we are seen interest rates nearer to 4%. This will take the DPU down.
2. The HK and China properties will see negative rent reversions for years as the economic growth may remain weak for a long time.
It really needs to go down some 20% more to be attractive to me.