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?

6 comments:

  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...

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  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.

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  3. A few good reads here

    http://singaporeanstocksinvestor.blogspot.sg/

    http://reitdata.com/

    Hoped this helps.

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  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.

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  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.

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

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