07/2022
Six months is all it took to bring down a swinging, swanky stock market down to its swooning and sweltering current self. Through it all, the S-REIT market has once again proven its resiliency – while it is down like the other 8 market corrections (including 2 bear markets of 2008 – 2009 and Feb 2020 – Mar 2020) in the past 20 years, S-REITs have continued to outperform Equities. While the S&P 500 is down 1,129.79 points or 23.55% to its nadir at 3,666.77 on 17 Jun 2022, the FTSE ST REIT Index is only down 77.37 points or 8.86% at its low reached on 14 Jun 2022.
Somehow, having navigated the 1987 and 1989 stock market crashes, 1988 Asian Financial Crisis, 2008 Global Financial Crisis and the Covid-19 Pandemic, this current “crisis” seems a bit different and begs the question if the point of maximum pessimism will arrive sooner than what most investors, analysts and media have forecasted.
For sure, I do not belong to the current consensus BEAR market view.
Unlike typical crisis and market corrections which are triggered by key events, this current “crisis” is coaxed by a series of scary sagas, like playing Minecraft. Investors were initially spooked by the Federal Reserve wrong reading of “transitory inflation”, then fast and furious increases in interest rates, commodities and oil prices hikes and the Ukraine/Russia war.
So, who are the Winners and Losers in REITs in 1H2022?
What are some of the lessons learned?
At GCP Global REIT classes, we have consistently forewarned and highlighted to GCP Global student investors to expect this correction. Now that we have been right again, how does a sagacious REIT investor position for a profitable 2H2022?
Losers in REITs in 1H2022
EC World REIT and newly-listed REIT like Digital Core REIT were the worst-performers in 1H2022.
GCP Global student investors were forewarned on the loan renewals at EC World when the share price was at 77 cents in our 12 Feb 2022 class before the share price started to collapse.
We had also forewarned and predicted Digital Core REIT various obvious risk factors in our YouTube video on 30 Nov 2022. Thus, not surprisingly, the share price of Digital Core REIT has crashed 33.62%, wiping away any profits made at IPO and entering into S-REITs statistics that almost all S-REITS listed with foreign assets lose money for investors
Not surprisingly, Value Traps which we have previously highlighted like Cromwell REIT, Manulife REIT, Prime REIT and Keppel Oak Pacific REIT made up the other Worst 10 Performing REITS for 1H2022.
Gainers in REITs in 1H2022
Table 2 shows the Top 10 Performing REITs for 1H2022.
As reiterated many times in our GCP Global REIT classes in the past 33 years, the gulf between the Top 10 and Worst 10 Performing REITs is huge.
Our top picks in our REIT classes for Covid-19 recovery plays were the Hospitality and Retail sectors.
4 of the Top 10 Performing REITs were Hospitality plays. Frasers HT took Top spot, Ascott Residence Trust placed 3rd, CDL HT took 4th place and Far East HT took 7h place. Investors who attended GCP Global Quarterly REIT classes would have been benefited richly and rightfully with an average return of 19.56% from our Hospitality REITs call.
2 of the Top 10 Performing REITs were Retail REITS.Capitaland ICT took 5th spot while Frasers Centrepoint Trust where I was recently listed as its Top 20 shareholder round up the Top 10 REITS.In our classes, I have shared that I took my substantial profits on FCT in Jan 2020 when the share price went above $3.
Has the current market sold off reached maximum pessimism?
What are some of the lessons learned from studying the Top 10 and Worst REITS in 1H2022?
At GCP Global REIT classes, we have consistently forewarned and highlighted to GCP Global student investors to expect this correction. Now that we have been right again, how does a sagacious REIT investor position for a profitable 2H2022?
For more of which REITs that a perspicacious REIT investor should have and should not have in their investment portfolios, do join us on our next upcoming Quarterly REITS class entitled “BUYING THE BOTTOM IN REITS AFTER THE BRUTAL SELL-OFF” on 13 Aug 2022. SIGN UP HERE
Knowing how to side-step and avoid those REITS that will underperform is probably more important than knowing which REITs to pick in Making your millions in REITs.
Happening on 13 Aug 2022 | Saturday from 10am to 2pm (with Lunch) at Csuites @ PLQ3
OUR LATEST MEDIA INTERVIEW ON REITS, TECHNOLOGY & DISRUPTOR INNOVATORS –
BETTER INVESTOR EDUCATION AND PROTECTION FOR A THRIVING REIT MARKET – 26 May 2022, BUSINESS TIMES
1. FOCUS ON ROIC & EV/EBITA TO EVALUATE REIT MERGERS & ACQUISITIONS – 17 Mar 2020, BUSINESS TIMES
2. TOO MANY REITS S-REITS MAKING CASH CALLS THAT DON’T ADD VALUE FOR UNITHOLDERS – 16 Mar 2022, BUSINESS TIMES INTERVIEW
3. FIGHT HOTS UP FOR LOGISTICS ASSETS – 24 Nov 2021, BUSINESS TIMES INTERVIEW
5. CHINA REITS COULD GIVE S-REITS SOME COMPETITION – 21 Jun 2021, BUSINESS TIMES INTERVIEW
6. IMPACT OF CHINA REITs ON S-REITs – 14 Jun 2021, LianHe Zaobao
7. WISDOM EYE ON BUSINESS – 25 May 2021, Wisma Geylang Serai, South East Community Development Council of Singapore
8. BOTTOM FISH FOR TECH & CHINA TECH – 25 Apr 2021, BUSINESS TECH ASIA
9. HOW DO INVESTORS SPOT REIT MERGERS THAT DESTROY VALUE? – 19 Apr 2021, PRIME TIME MONEY FM89.3
10. MAINLAND INVESTORS FLOCK TO S-REITS – 26 Apr 2021, LIAN HE ZAOBAO
REITS FOR A GOOD CAUSE
GCP Global students donate to help Covid-19 victims
OUR LATEST PUBLICATIONS -
1. THE ABILITY TO DELIVER DPU GROWTH IS THE KEY IN S-REITS SUPERIOR PERFORMANCE IN 2021
2. SEVEN & HALF YEARS ITCH IN S-REITS – THE ITCH CONTINUES WITH SEVERE RAMIFICATIONS
3. SEPERATING THE SHEEP FROM THE GOAT IN S-REITS
https://gcpglobalsg.wixsite.com/gcpglobal/post/separating-the-sheep-from-the-goat-in-s-reits
4. WHERE & HOW to make your next Million in the Year of the Ox
5. 7th Year Itch for S-REITs and its severe ramifications for the REIT investor
AUTHOR OF MAKING YOUR MILLIONS IN REITS
CHAIRMAN OF JUDGING PANEL FOR THE ASIAN REITS PINNACLE AWARDS 2016 & 2017
HOST OF THE FUTURE OF REITS FORUM, 2016
JUDGE FOR SINGAPORE CORPORATE AWARDS – BEST REITS INVESTOR RELATIONS 2017
HOST FOR SINGAPORE CORPORATE AWARDS – BEST REITS INVESTOR RELATIONS 2019