Wednesday, June 13, 2012

Buy Which REIT?

There are actually quite a few REITs now listed in the Singapore stock exchange.  Have been thinking of investing a bit of my money again since there is some spare cash sitting around.  There are really so many options to choose from: industrial, retail, office, hospitality, etc etc.

I am having a difficult time deciding what to buy.  Have been thinking that maybe I should get a handful of Saizen REIT, Sabana REIT and Starhill Global REIT.  What do you all think?


  1. make a list of criteria: yield, growth potential, gearing ratio, valuation (relative to NAV). Every investor will have a personal preference in which criteria he/she feels most comfortable with...

    For me, I chose yield with low gearing as the key criteria, and end up with AIMS AMP, Cache, Sabana, First REIT and LMIR...

  2. Yes agreed but be careful who is the backer. Will the backer still around if there is a credit crunch during bear market or any catastrophe? Sometimes we have to sacrifice yield a little for sleeping well at night. Usually the present gearing of the Reits tell you whether what Mr. Market think of the backers. If you must, have a "mixture" Caveat Emptor. IMHO.

  3. A few good reads here

    Hoped this helps.

  4. How much is your spare? Mid or high XX% of your total capital?

    High yield growth stocks are currently not available yet. Be patient.

  5. Even though REITS are pretty crowded now, it has the potential to get even more crowded. Wait until you see average yield goes down from the top to middle 5-6%, thats the time when REITS get really crowded.

    Just my thoughts.

  6. Hi B,
    Care to explain what it means by getting really crowded?


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