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$Suntec Reit(T82U.SG)
Context: As expected, reits continue to trend down with the probability of interest rate hike in September increasing to 92%. This makes the valuation of many reits more attractive. 1.39 had been a strong support in the past for Suntec Reit. I will see if it can hold or if it will go lower.
My Trade: Wait and see if 1.30 holds as a support.
Takeaway: Reits are starting to look attractive in terms of valuation.
$Suntec Reit(T82U.SG)
The Context:
The prices of reits have come under pressure lately due to the increased probability of a rate hike. Some of my friends saw it as an opportunity to buy at a more attractive price and dividend yield while others are adopting a wait-and-see approach. Then the yield of the 10-year Treasury fell in reponse to Governor Waller’s speech which was interpreted by the market as support for maintaining the interest rate in September but this is contingent on the inflation data showing signs of deflation.
Subsequently, the August job data report showed a stronger than expected figure for non-farm payroll jobs which made the yield go up.
My Trade: Maintain while watching for an opportunity to add more.
Takeaway: News can have a pronounced short-term impact on stock prices but expectations can change quickly. For long term value investors, if the convictions and fundamentals haven’t changed drastically, there is no need to panic and do reactive trades.
$Suntec Reit(T82U.SG)
The Context: The price today has dropped to 1.49 which is a somewhat bearish sign as it is more than 50% pullback from the recent high of 1.58. The just released personal consumption expenditure price index for July is 3.7%, higher than 3.6% in June when the target is 2% so the probability of a rate hike in September has increased from 36% to 44%. This may put some pressure on reit prices in the near term but I think the rate may be kept the same since the US is also trying to balance the cost of servicing its 40-trillion-dollar debt.
My Trade: Continue to hold.
Takeaway: Expectations of interest rate changes can affect the stock price in the short term but if the fundamentals have not changed drastically, there is no need to sell.
$Suntec Reit(T82U.SG)
Context: After reaching 1.58, Suntec Reit has retreated to 1.51-1.52 which is a healthy pullback in my humble opinion. Treasury yields have been falling due to bond buy backs by the US Treasury. If interests rates are eased instead of being hiked, this will be a positive catalyst for reits.
My Trade: Continue to hold and let the dividends reduce my position cost.
Takeaway: Doing nothing is a strategy too.
$Suntec Reit(T82U.SG)
Suntec REIT: Is the Tide Finally Turning — Or Is Another Rights Issue Waiting?
Suntec REIT’s recovery is becoming harder to ignore. The Business Times report highlights One Raffles Quay as a potential divestment candidate, although management says current recycling remains focused on Australia and Suntec office strata units. (The Business Times)
The numbers are improving: 1H26 DPU rose 24.8% to 3.936 cents, helped by lower financing costs and stronger Singapore office and retail performance. Singapore office occupancy was 98.8%, while retail reached 99%, with positive rental reversions. (The Edge Singapore)
The bigger question is what happens next. Selling ORQ could crystallise value and reduce leverage, but recycling into acquisitions would only make sense if clearly DPU-accretive. With leverage still elevated, another equity fund-raising cannot be ruled out if management pursues growth too aggressively.
Technically, the unit price around S$1.49 remains below recent highs, suggesting the market is still cautious. Valuation looks reasonable for an improving earnings profile, but leverage caps the upside.
Stance: HOLD, with buying in tranches below S$1.50. The tide at Suntec City is improving, but the next catalyst should be deleveraging and accretive asset recycling—not another rights issue.
Not financial advice.
$Suntec Reit(T82U.SG)
Context: Way to go, Suntec Reit does not disappoint as it makes another new high today! You can see from the charts the price of Suntec Reit has been quite stable and one of the better performers out of the other S-reits. I believe this is because its DPU has proven to be resilient. If I sell now, it is like free money as after ex-dividend, it has continued to go up.
My Trade: Nothing although it is very tempting to take partial profits.
Takeaway: Don’t sell the winners.
$Suntec Reit(T82U.SG)Woohoo a new high of 1.54! Who’s also holding this stock? Dancing a happy little jig. Let’s see if this momentum can be sustained. The reit has been looking for opportunities to divest some of its assets in Australia. If successful, it will be able to get cash flow to either pay down debt or redeploy to assets with a higher yield.
$Suntec Reit(T82U.SG)The chart still looks good although KDJ of 70 is approaching overbought levels. I do think a cup and handle pattern may be forming soon. It would be very shiok to see this stock breaking 1.53 as rate cuts appear to be more probable than rate hikes now. I hope the Strait of Hormuz negotiations won’t introduce some new spanner into the works. Never forget the market can be volatile so:
1) Don’t FOMO
2) Only use cash that is in excess of your emergency funds
3) Choose stocks of companies you don’t mind holding for long i.e. the companies have moats and strong financials
$Suntec Reit(T82U.SG)Wow, Suntec reit bounced back faster than I expected from 1.46 so I didn’t manage to get in more but it may test this support again. If there aren’t any major negative events, I think there is a good chance it can eventually break out and challenge 1.51-1.53. Meanwhile, the nice dividend payout in August will reward me for my patience.
$Suntec Reit(T82U.SG)The price has pulled back after ex-dividend which can be a good opportunity for me to accumulate some more units. The tricky part is identifying a good entry point. Although it is not always possible to catch the absolute bottom, I also don’t want to buy at too high a price. If it pulls back more than 50%, there is a risk the price may fall further in the short term. Assuming the dividend is maintained at two cents per quarter, the dividend yield is 5.47% which makes it one of the stronger performing S-reits currently.
