10/2017-
SREITS continued to outperform the FTSTI in 3Q2017.
While the FTSTI suffered a minor correction of -7 points from 3,226 to 3,219 or -0.22%, SREITS remained almost immune – it held steady from 2Q2017 performance.
As in our quarterly REITS class, we have always highlighted that the ability of SREITS to deliver outperformance is and should not be based on growth in revenue or NPI or Distributable Income, but on the DPU. This last quarter’s set of results clearly underscore what we have been teaching.
An analysis of the quarter’s Worst Performers revealed that that with the exception of Mapletree Commercial Trust, all Worst-10 SREITS delivered either YoY OR QoQ DPU negative growth.
Not surprisingly, the Worst-10 SREITS namely ESR Reits, AIMPS AMPI and EC World Reit all registered the worst drops in DPU! Clearly, SREITS price movements are a great reflection of their underlying performances.
A similar analysis of the quarter’s Best Performers revealed that that with the exception of Ascott Reit and Manulife Reit, all Top-10 SREITS delivered either YoY OR QoQ DPU positive growth.
Again not surprisingly, the top 3, namely Mapletree GCC, Viva Industrial Trust and OUE Hospitality Trust had surprised market with their above-average DPU announcements.
We have always prepared our REITS class participants of such a trend by identifying the Top-3 Reits in our previous classes. In fact, we actually hosted Viva Industrial Trust in our quarterly Investors Meet (where all our students were invited) where investors get to see the REIT’s properties and further understand first-hand from management about their underlying performances.
To identify the next quarter’s and next year’s winners, do sign up for our next REITS class at https://www.eventbrite.com/e/reits-to-riches-and-a-happy-retirement-with-gabriel-yap-tickets-37633488778?aff=es2
From REITS to Riches – it is indeed both hard and consistent work.