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Fair enough.
The better word is acumen - the ability to make good judgements and take quick decisions:
The best traders have trading acumen.
The best investors have investing acumen.
Trade with business acumen
The best traders have trading acumen.
The best investors have investing acumen.
Trade with business acumen
Alignment ( Date: 09-Apr-2024 14:58) Posted:
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Many are bad opportunities. Some are great opportunities. Picking the right ones requires skill. Skill is what differentiates the roughly 25% of retail investors who make profits from the roughly 75% of retail investors who make losses.
Stay away from the so called double digit yield reits. Most have not had a good ending.
Ask ourselves, in the face of such high interest rates, and we know all reits leverage, how in the world can we get such double digit yields?
Ask ourselves, in the face of such high interest rates, and we know all reits leverage, how in the world can we get such double digit yields?
Alignment ( Date: 09-Apr-2024 14:26) Posted:
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I would say that the company appears to face significant risks, at least to me.
I don' t know whether the risks I am concerned about will materialise. But I know I personally would not want to take the risk. Especially when there are alternative but similar investment opportunity like Cromwell which don' t have these risks and yet have a double digit DPU yield.
I don' t know whether the risks I am concerned about will materialise. But I know I personally would not want to take the risk. Especially when there are alternative but similar investment opportunity like Cromwell which don' t have these risks and yet have a double digit DPU yield.
Not as bad as prime us. But nonetheless assets mostly outside sg. On a slow decline.
Should be sold off. Maybe even close down the reit. Careful of forex risks.
Dividends in euro? Expect annual 2 to 3 percent devaluation against sgd
Will it go down the road of PRIME REIT or MUST ?
Alignment ( Date: 24-Feb-2024 22:49) Posted:
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Today lowest at 33.5 cents.
Now at 34 cents.
But unable to get at 33.5 cents. lol
Now at 34 cents.
But unable to get at 33.5 cents. lol
Such a big fall in DPU.
IReit Global&rsquo s H2 DPU falls 26.6% to 0.0094 euroEUROPE-FOCUSED real estate investment trust (Reit) IReit Global reported on Thursday (Feb 22) a 26.6 per cent decline in distribution per unit (DPU) for the second half, on the back of lower income to be distributed and a larger unit base.DPU for the six months ended Dec 31, 2023 fell to 0.0094 euro, from 0.0128 euro in the prior year period. Meanwhile, income to be distributed fell 13.5 per cent on year in the second half to 12.8 million euros (S$18.6 million).The manager said the performance was mainly due to retention of the dilapidation cost payable to finance the repositioning of Berlin Campus, rent-free granted to tenants at Bonn Campus and Darmstadt Campus, and an enlarged unit base.Gross revenue for the second half rose 15.7 per cent on year to 36.5 million euros, while net property income increased 14.6 per cent to 27.9 million euros.The increase was mainly due to contribution from the acquisition of 17 B& M retail properties in France starting from September, as well as other income from dilapidation cost payable by the main tenant of Berlin Campus.For the full year, the Reit reported gross revenue of 65 million euros, up 5.4 per cent on year, while net property income rose 2.3 per cent to 49.9 million euros.Income to be distributed was down 19.2 per cent to 25.2 million euros, while DPU fell 30.5 per cent on year to 0.0187 euro.As at Dec 2023, portfolio occupancy stood at 90.4 per cent, higher than the 88.3 per cent a year earlier. This was driven by the addition of the B& M Portfolio which was fully occupied, as well as the signing of 15-year new lease with for 25 per cent of Darmstadt Campus in April 2023.Louis d&rsquo Estienne d&rsquo Orves, chief executive of the manager, said the key focus looking ahead is to increase the occupancy rate of IReit&rsquo s portfolio assets, particularly Darmstadt Campus, and to refurbish and reposition Berlin Campus into a multi-let asset if the main tenant leaves in December 2024.&ldquo In 2024, performance is likely to benefit from positive rental escalations, end of rent-free periods granted to tenants within IReit&rsquo s portfolio and full-year contribution from B& M Portfolio,&rdquo he said.The manager expects the European real estate market to improve in 2024, but noted that challenges remain, amid the uncertain geopolitical environment and economic outlook.As at Dec 31, 2023, the Reit&rsquo s aggregate leverage ratio stood at 37.9 per cent, up from 32 per cent a year earlier. Its interest coverage ratio stood at seven times, while weighted average interest rate was 1.9 per cent.Net asset value per unit fell to 0.41 euro as at Dec 2023, down from 0.54 euro in Dec 2022.
IReit signs two new leases in France and Germany
IREIT Global has secured two new leases in France and Germany.
The manager of the Europe-focused real estate investment trust (Reit) said in a Wednesday (Jan 31) bourse filing that the first is a lease extension for its 17 retail properties in France under the discount retailer B& M.
The properties&rsquo sole tenant has agreed to extend its leases by 3.8 years on average, bringing the weighted average lease expiry (WALE) of the 17 properties to 7.7 years.
This will add over 22 million euros (S$32 million) of cash flow to IReit&rsquo s portfolio, said the manager. IReit completed its acquisition of the B& M properties in September 2023 and engaged the tenant in discussions.
The second lease is a 10-year agreement with a tenant for two office floors at the Munster North building in Germany. The new tenant &ndash a major provider of mobile roof antennas in Germany &ndash replaces existing occupant Deutsche Telekom when it leaves in the first quarter of 2024.
The rents are maintained at similar rates as the passing rents for Deutsche Telekom&rsquo s lease.
&ldquo Notably, there are limited costs incurred by IReit and no rent-free period in respect of the new lease at Munster North building,&rdquo the Reit&rsquo s manager said.
Separately, IReit has completed its divestment of Il· lumina, an office building in Barcelona, Spain, at the previously announced price tag of 24.5 million euros. This represents a 6.1 per cent premium against the property&rsquo s latest valuation as at Dec 31, 2023.
With the divestment, IReit&rsquo s portfolio occupancy is estimated to increase from 90.4 per cent &ndash as at Sep 30, 2023 &ndash to 91.5 per cent on a pro forma basis. Its WALE will increase from 4.9 to five years.
IReit will use the net proceeds for financing higher yielding assets and to refurbish existing assets, its manager said.
The retail deal did not really represent an improvement in diversification given all 17 properties are taken up by the same tenant.
IReit&rsquo s portfolio valuation falls by 2.6% to 899 million euros
IREIT Global&rsquo s portfolio valuation as at Dec 31, 2023 stood at 899 million euros (S$1.3 billion) across its properties, based on the latest external valuation conducted by Savills.
This was 2.6 per cent lower than the real estate investment trust&rsquo s portfolio value of &euro 922.7 million as at Jun 30, 2023, and 5.4 per cent lower than the &euro 950.5 million it reported the year before.
Louis d&rsquo Estienne d&rsquo Orves, chief executive officer of the manager, said that since the Covid-19 pandemic and interest rate hikes, IReit&rsquo s office portfolio valuation has fallen by only 5.6 per cent, supported by active leasing and stable leases its retail portfolio valuation actually rose by 1.4 per cent, he said.
The September 2023 acquisition of 17 retail properties in France has highlighted the importance of the manager&rsquo s strategy of diversifying the Reit&rsquo s portfolio from geographical and asset-class standpoints.
On a like-for-like basis, excluding the 17 retail properties, IReit&rsquo s portfolio would have fallen by 13.6 per cent year on year, triggered mainly by the weak performance of its properties in Germany, the manager said.
Compared to its total initial purchase consideration of 775.6 million euros, IReit&rsquo s portfolio valuation as at Dec 31, 2023 was still up by 123.4 million euros or 15.9 per cent.
As at Dec 31, IReit&rsquo s gearing stood at approximately 37.4 per cent. This was higher than the 34.4 per cent it reported in its Q3 2023 update.
The manager now anticipates IReit&rsquo s net asset value per unit to be approximately 40 euro cents, it said.
It said: &ldquo Based on the last closing unit price of S$0.405, IReit still trades at an attractive 30.7 per cent discount to its NAV.&rdquo
Sharing my latest video analysing iREIT Global:
iREIT Global Will Be An Outperformer This Year, But You Already Know That #dividendinvesting
https://youtu.be/gPMZZOJNJHQ
iREIT Global Will Be An Outperformer This Year, But You Already Know That #dividendinvesting
https://youtu.be/gPMZZOJNJHQ
RHB upgrades IReit Global to &lsquo buy&rsquo on asset sale, attractive yield spreads
RHB on Tuesday (Jan 2) upgraded IReit Global : UD1U 0% to &ldquo buy&rdquo from &ldquo neutral&rdquo after the real estate investment trust (Reit) announced it would sell its Spanish asset at a premium to valuation.
The research team also raised its target price on the counter to S$0.47 from S$0.42, implying a potential upside of 17.5 per cent from the counter&rsquo s last traded price of S$0.40 as at the midday trading break on Tuesday. IReit Global&rsquo s units were down 1.2 per cent or S$0.005 at the time.
To recap, IReit Global is divesting Il· lumina, an office building in Barcelona, Spain, for 24.5 million euros (S$35.8 million), 5.2 per cent above the property&rsquo s valuation of 23.3 million euros as at Jun 30.
The move is expected to improve the Reit&rsquo s portfolio weighted average lease to expiry and further strengthen its balance sheet position with a low gearing.
RHB believes the divestment could provide debt headroom for opportunistic acquisitions ahead. Furthermore,the recent slide in eurozone bond yields could provide tailwinds as this makes current yield spreads attractive.
This opinion comes as annual inflation for the euro area drops more than expected to 2.4 per cent in November 2023, versus 2.9 per cent in October 2023, resulting in economists forecasting that rates have peaked, with rate cuts to come in early Q2 2024.
These tailwinds, coupled with risk-free rates receding, could mean that the capitalisation rate expansion cycle is likely over for European assets, and further asset devaluations are unlikely, RHB said.
RHB has cut its distribution per unit forecasts for FY2024-25 forecasts by 2-3 per cent after accounting for a loss of income from the Spanish asset divestment. It also lowered its cost of equity assumptions by 70 basis points after taking into account reduced risks from IReit&rsquo s low gearing profile and the fall in risk-free rates.
IReit Global to sell Barcelona office property for 24.5 million euros at premium to valuation
IREIT : UD1U +1.3% Global : UD1U +1.3% will divest Il· lumina, an office building in Barcelona, Spain, for 24.5 million euros (S$35.8 million), its manager said on Friday (Dec 22).
The consideration is 5.2 per cent above the property&rsquo s valuation of 23.3 million euros as at Jun 30, and was negotiated on a willing-buyer and willing-seller basis.
The freehold property is located in Esplugues de Llobregat, a mixed-use office and industrial area including a technology and audio-visual office cluster 5 km away from Barcelona&rsquo s financial district.
It has a total lettable area of 20,922 square metres with 310 parking spaces, and yielded 2.4 million euros in gross rental income for FY2022.
Although it has provided recurring income since acquisition, income yield has been lower compared with the rest of the real estate investment trust&rsquo s portfolio, the manager noted.
Its short weighted average lease expiry of 2.8 years, which is lower than the portfolio average at 4.9 years, could result in higher vacancy when the leases expire, as the secondary office location of the property may pose challenges in leasing.
https://www.businesstimes.com.sg/companies-markets/ireit-global-sell-barcelona-office-property-245-million-euros-premium-valuation
Sold above valuation (The consideration is 5.2 per cent above the property&rsquo s valuation of 23.3 million euros as at Jun 30, and was negotiated on a willing-buyer and willing-seller basis.) but actually at a loss to purchase price (Tikehau Capital (ENXTPA:TKO) and IREIT Global (SGX:UD1U) entered into a conditional share sale and purchase agreement to acquire Il· lumina building in Spain from Corona Patrimonial SOCIMI, S.A. (BME:YCOR) for &euro 25.4 million on December 7, 2019.)
Sold above valuation (The consideration is 5.2 per cent above the property&rsquo s valuation of 23.3 million euros as at Jun 30, and was negotiated on a willing-buyer and willing-seller basis.) but actually at a loss to purchase price (Tikehau Capital (ENXTPA:TKO) and IREIT Global (SGX:UD1U) entered into a conditional share sale and purchase agreement to acquire Il· lumina building in Spain from Corona Patrimonial SOCIMI, S.A. (BME:YCOR) for &euro 25.4 million on December 7, 2019.)
IREIT Global' s portfolio valuation grows to EUR999.5 mil after acquisitions in France
Europe-focused IREIT Global UD1U 0.00% &rsquo s portfolio valuation as at Sept 30 stood at EUR999.5 million ($1.45 billion), an 8.3% increase from its valuation as at end-June.
The growth in IREIT&rsquo s portfolio came as a result of the acquisition of 17 retail properties in France, occupied by European discount retailer B& M Group, with a weighted average lease expiry (WALE) of 6.3 years. The acquisition was completed on Sept 5.
The REIT&rsquo s portfolio now comprises 446,038 sqm across five German properties worth EUR638.6 million, 44 properties in France worth EUR199.8 million and five Spanish properties valued at EUR161.1 million.
During the 3QFY2023 ended September, IREIT saw a new federal tenant move into 7,600 sqm leased space at its Darmstadt Campus in Germany, with follow-up works to be completed in 4QFY2023. There are also ongoing discussions with several potential tenants for new leases totalling an estimated 7,000 sqm at the Darmstadt Campus.
At its Berlin Campus, refurbishments have been planned well ahead of the potential departure of the main tenant at the end of 2024. IREIT has also conducted a feasibility study, with leasing to start by end-4QFY2023. The planned refurbishment would provide long-term income and value upside but would have near-term impact on earnings during refurbishment, says the REIT.
In Spain, IREIT signed a new lease at Delta Nova IV and two new leases at Sant Cugat Green, where data centre operations have begun after the completion of works in 3Q2023. A new occupier also moved into Parc Cugat Green.
Finally, the REIT completed the BREEAM certification process for all its Decathlon retail properties in France.
IREIT&rsquo s overall occupancy rate improved to 90.4% as at Sept 30, up from 88.7% in the prior quarter, with a WALE of 4.9 years.
Following the acquisition in France, IREIT&rsquo s aggregate leverage increased to 34.4%, compared to 33.1% as at June 30.
RHB cuts target on IReit Global to S$0.42 on muted outlook
RHB shaved its target price on IReit Global : UD1U 0% to S$0.42 from S$0.53 on a more muted outlook as the Europe-focused real estate investment trust (Reit) faces challenges in the German office leasing market.
The research team maintained its &ldquo neutral&rdquo call on the Reit, but expects occupancy weakness to persist in the short term as leasing progress at IReit&rsquo s Darmstadt Campus property located in Frankfurt remains slow.
Occupancy at the property currently stands at only 25 per cent, with the sole tenant committed so far being a 15-year lease with a German federal government body.
That being said, the Reit had a better-than-anticipated outcome for its leases with Deutsche Rentenversicherung Bund (DRV), its largest tenant, RHB said in a report on Tuesday (Sep 12).
DRV said it would extend its lease by six months until the end of 2024 and pay a revised rate that is 45 per cent higher than existing rents from Jul 1, 2024.
DRV will also pay a lump sum of 15.5 million euros (S$22.7 million) &ndash or more than 16 months in current rent &ndash to compensate IReit Global for dilapidation costs to reinstate the property back to its original state at the end of the extended lease term.
&ldquo We believe DRV is likely to vacate the premises by end-2024, as it has been consolidating its footprint nearby,&rdquo said analyst Vijay Natarajan.
He added that IReit Global earlier guided that it would need to spend about 50 million to 100 million euros in capital expenditure to substantially refurbish the asset, which could lead to 12 months to 24 months of downtime.
Refurbishing, however, could &ldquo unlock significant value&rdquo for the asset as it is still under-rented at 50 per cent below market rents.
RHB&rsquo s outlook on the Reit&rsquo s distribution per unit for the second half of 2023 remains weak &ndash although better than the first half &ndash and is supported by recent acquisitions and contributions from a government lease for Darmstadt Campus.
I am getting the dividend around $800
other comments on US stock market
https://youtu.be/zLrBxwQEeuM
other comments on US stock market
https://youtu.be/zLrBxwQEeuM