7.5k to invest in REITS

ah_leetw

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Bro, you might like to share with us which REITs you have shortlisted?

To be honest, the price for reits are very high now. Isn't attractive anymore.

If you posted this few months earlier, I will recommend you Valuetronics.
 

FreshFunds

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If I were you, I will just up the STI ETF amount and setup another RSP using the $7.5k money. Stop the RSP once $7.5k fully utilised.

You wouldn't want to buy lump sum and end up buying at a peak price.

Start slowly but surely safe.

I'm planning to hold my STI ETF for long term (>30 years) and will increase my monthly amount gradually when my savings power increase. Currently my 6 months ROI (inclusive of dividends) is about 1.85%. have been reading POSB IS thread and i think historically it's about 2-3% in the long run.

thus now I'm keen to venture into other investment instruments such as REITS and yes, understand that prices are at its peak now therefore I'm not really concern about the growth prospect as much as their dividend yields.

just hoping that I don't regret my decision in the long run since it's my first reits purchase and that I can smile when the dividends roll in and not have sleepless nights looking at the share prices go down lol

Bro, you might like to share with us which REITs you have shortlisted?

To be honest, the price for reits are very high now. Isn't attractive anymore.

If you posted this few months earlier, I will recommend you Valuetronics.

have shortlisted the below:

First Reit
EC World REIT
Cache Log Trust
BHG Retail Reit
AIMS APAC Reit
Keppel Pacific Oak US REIT
CapitaR China Tr
Sasseur REIT
ManulifeReit USD
CDL HTrust
Frasers Log Trust
Ascendas Reit

my criteria (not in order):

Dividend Yield >5.5%
P/B ratio <1.3
DPU >0.05
Gearing ratio <40%
Property yield >5%

the dividends are still pretty attractive but I think if u wanna make profits from active trading, it will be a challenge unless u spend alot of time researching aka being a semi full time trader?? thus I'm just looking to hold it and reap the dividends but of course after doing my due diligence of researching on other factors such as occupancy rates, WALE etc.

any recommendations/red flags that I should know about for my shortlisted reits?
 

lasnoblur

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Hello TS,

glad that you are starting your first reit investment.

Since you already have some experience, you should be aware that when bubble comes REITs also are not spared.

Recent REITs price drop is fast and fierce but most of them have recovered a little. Not sure whether isit a dead cat bounce. This drop caught most retail by surprise. Part of it is linked to us bond price.

It's true that REITs had a good run for the past 10 years but no one knows whether this can substain in the near future.

Some stable REITs had fell sharply in recent years and have not recovered. Examples: first reit, lippo retail. A reit is most recent victim but had recovered abit.
 

polyglob

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have shortlisted the below:

First Reit
EC World REIT
Cache Log Trust
BHG Retail Reit
AIMS APAC Reit
Keppel Pacific Oak US REIT
CapitaR China Tr
Sasseur REIT
ManulifeReit USD
CDL HTrust
Frasers Log Trust
Ascendas Reit

my criteria (not in order):

Dividend Yield >5.5%
P/B ratio <1.3
DPU >0.05
Gearing ratio <40%
Property yield >5%

Maybe group them by sector: retail, hospitality, office, industrials etc and look at the sector macro risks. Also geographic coverage of the REITs and specific geographic risks. I mean, anyone checked how HK retail REITs are doing recently?
 

wutawa

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For short term wise (the next 2 years), would it be wise to just buy 7 lots of first reits (8.43% div yield) VS 3 lots of mapletree ind trust (4.88% div yield)?
Mapletree int tr pb is more than 1.3. What is your consideration for making it an exception? :)
 

FreshFunds

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Hello TS,

glad that you are starting your first reit investment.

Since you already have some experience, you should be aware that when bubble comes REITs also are not spared.

Recent REITs price drop is fast and fierce but most of them have recovered a little. Not sure whether isit a dead cat bounce. This drop caught most retail by surprise. Part of it is linked to us bond price.

It's true that REITs had a good run for the past 10 years but no one knows whether this can substain in the near future.

Some stable REITs had fell sharply in recent years and have not recovered. Examples: first reit, lippo retail. A reit is most recent victim but had recovered abit.

thanks for the insight. yeah no one knows, the least we can do is to look at historical records (which ofcos dont necessarily reflect future performance) and abit of speculation. I guess like what some said, it all boils down to my risk appetite.

Maybe group them by sector: retail, hospitality, office, industrials etc and look at the sector macro risks. Also geographic coverage of the REITs and specific geographic risks. I mean, anyone checked how HK retail REITs are doing recently?

alright will do that and analyze further. thus diversification is what I strive for in the long run but currently i don't have much capital to play with. just have to narrow down to a few and hope for the best in the short term. most likely i will go for first reits as my first purchase, any other factors to lookout for?

Mapletree int tr pb is more than 1.3. What is your consideration for making it an exception? :)

yeah it is about 1.67 now. my point was to just make a comparison of first reit against another first tier reit. even the 4.88% div yield of mapletree is not part of my criteria haha it was just an example.

currently contemplating between first reit (div yield 8.51%), EC World (pb ratio 0.84) and AIMS APAC (sweet spot gearing ratio of 33.7%). will need to do further risk analysis on these before making my decision.
 

Angry Bird

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haiz, bro,

you could be whole mind too occupied with reits, (too occupied and focused on your main objective of investing)

example,
when you go out the big ocean fishing, better don't be just too focused on where to chase the fish, looking for specific fish species, finding the biggest fish etc.
try to be alert at all time also, about fast changes in weather, ocean current and tide condition, water temperature, algae, jelly fish etc. Make sure your boat always in good condition. Keep track on radio news of when typhoon approaching. There are also a lot of pirates, snakes, buaya and sharks in the big ocean. Ocean can supply you fish, but ocean could swallow you up also.

for experienced fishermen, they are able to catch even more fish in not so good weather. they can handle sudden storm condition if it occurs. and they could dump the whole boat of fish caught immediately to make their boats escape faster.
for people like me who cannot even swim very well, i stay onshore and fish if not good weather... and sometimes it is "no fish then shrimp also good enough", meaning cannot buy reit then get etf or other bluechips, or just simply throw inside reit-etf.

i think go imitate or follow dividends warrior cannot go wrong one,... i'm trying to do that next... Whatever DW buys then you and i go buy, not what he is already holding... have fun with your investing$$...

Hello! DW, What are you buying next? I want to follow!.. ;)
 

wutawa

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yeah it is about 1.67 now. my point was to just make a comparison of first reit against another first tier reit. even the 4.88% div yield of mapletree is not part of my criteria haha it was just an example.
If i have to choose between the 2, it will be mapletree int tr just because it is "safer". Seeing your liking on first reit, maybe u can consider putting $5k instead of all $7.5k in.

How do u know the tier of the reits?

i think go imitate or follow dividends warrior cannot go wrong one,... i'm trying to do that next... Whatever DW buys then you and i go buy, not what he is already holding... have fun with your investing$$...

Hello! DW, What are you buying next? I want to follow!.. ;)

Be careful, experienced fisherman can get out of dangerous water quickly. Make sure u r quick enough to follow his selling too. :p
 
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MikeDirnt78

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i think go imitate or follow dividends warrior cannot go wrong one,... i'm trying to do that next... Whatever DW buys then you and i go buy, not what he is already holding... have fun with your investing$$...

I tell you it is more practical to just buy the NIKKOAM-STC ASIA REIT now.

Better diversification, regional exposure and easier to manage.
 

Mochichu8285

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I'm planning to hold my STI ETF for long term (>30 years) and will increase my monthly amount gradually when my savings power increase. Currently my 6 months ROI (inclusive of dividends) is about 1.85%. have been reading POSB IS thread and i think historically it's about 2-3% in the long run.

thus now I'm keen to venture into other investment instruments such as REITS and yes, understand that prices are at its peak now therefore I'm not really concern about the growth prospect as much as their dividend yields.

just hoping that I don't regret my decision in the long run since it's my first reits purchase and that I can smile when the dividends roll in and not have sleepless nights looking at the share prices go down lol



have shortlisted the below:

First Reit
EC World REIT
Cache Log Trust
BHG Retail Reit
AIMS APAC Reit
Keppel Pacific Oak US REIT
CapitaR China Tr
Sasseur REIT
ManulifeReit USD
CDL HTrust
Frasers Log Trust
Ascendas Reit

my criteria (not in order):

Dividend Yield >5.5%
P/B ratio <1.3
DPU >0.05
Gearing ratio <40%
Property yield >5%

the dividends are still pretty attractive but I think if u wanna make profits from active trading, it will be a challenge unless u spend alot of time researching aka being a semi full time trader?? thus I'm just looking to hold it and reap the dividends but of course after doing my due diligence of researching on other factors such as occupancy rates, WALE etc.

any recommendations/red flags that I should know about for my shortlisted reits?

Can consider
Ascendas Reit
Ascott reit
Both are huge and stable
 

Angry Bird

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Be careful, experienced fisherman can get out of dangerous water quickly. Make sure u r quick enough to follow his selling too. :p

hur? did not know DW got sell shares also. i thought he always makan only, no need to go toilet and poo. sorry ah, my mistake! :s13:

the next time i see DW i'm going to ask him: "why all the price crashed shares for last few years like first reit, lippomall, sabana, eagle HTrust, cache logistic, RHT, soilbuild, Asia PayTV all never affect you one? you very smart or you pure luck nia?"

DW got mapletree NAC? he cannot be always so lucky right?

Hello! DW, What are you buying next? I want to follow!.. whatever you are holding now I'm not interested!.. ;)
 

FreshFunds

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haiz, bro,

you could be whole mind too occupied with reits, (too occupied and focused on your main objective of investing)

example,
when you go out the big ocean fishing, better don't be just too focused on where to chase the fish, looking for specific fish species, finding the biggest fish etc.
try to be alert at all time also, about fast changes in weather, ocean current and tide condition, water temperature, algae, jelly fish etc. Make sure your boat always in good condition. Keep track on radio news of when typhoon approaching. There are also a lot of pirates, snakes, buaya and sharks in the big ocean. Ocean can supply you fish, but ocean could swallow you up also.

for experienced fishermen, they are able to catch even more fish in not so good weather. they can handle sudden storm condition if it occurs. and they could dump the whole boat of fish caught immediately to make their boats escape faster.
for people like me who cannot even swim very well, i stay onshore and fish if not good weather... and sometimes it is "no fish then shrimp also good enough", meaning cannot buy reit then get etf or other bluechips, or just simply throw inside reit-etf.

i think go imitate or follow dividends warrior cannot go wrong one,... i'm trying to do that next... Whatever DW buys then you and i go buy, not what he is already holding... have fun with your investing$$...

Hello! DW, What are you buying next? I want to follow!.. ;)

interesting analogy. yes the ocean is huge with lots of uncertainties but i believe holding on to your principles is key.

i believe most reits investors look up to DW (including me), but everyone has different time horizons and investment goals, then comes along their diversification power which I currently do not posses. I may take 1 step forward and 2 steps back but I will be able to stomach it cos I fully understand the risks involved compared to others who may not even know what they are stepping on and later on dwell on their losses.

maybe u can share whatever boat-sinking experiences that u have heard of or experienced yourself?

If i have to choose between the 2, it will be mapletree int tr just because it is "safer". Seeing your liking on first reit, maybe u can consider putting $5k instead of all $7.5k in.

How do u know the tier of the reits?

yup have considered splitting the 7.5k, just a matter of how much amount to put in each type of reit. i rank the tier based on their DPU and share prices.


Can consider
Ascendas Reit
Ascott reit
Both are huge and stable

what other factors made you choose Ascott?
 
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MikeDirnt78

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hi Mike,

Why Nikko STC now ? falling interest rate ?

You can buy Nikko STC monthly from POSB Invest Saver. Don't need to time your purchase.

The ETF is more diversified with many REITs. You don't need to worry which REITs to pick.
 

kurtgoh

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I tell you it is more practical to just buy the NIKKOAM-STC ASIA REIT now.

Better diversification, regional exposure and easier to manage.

mind sharing more insights on NIKKOAM-STC ASIA REIt and not lion phillip s-reit etf?

Better diversification, regional exposure - yes but asia market.
easier to manage - true.. just buy monthly with POSB
 
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MikeDirnt78

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mind sharing more insights on NIKKOAM-STC ASIA REIt and not lion phillip s-reit etf?

Better diversification, regional exposure - yes but asia market.
easier to manage - true.. just buy monthly with POSB

This one is a good consideration if you just like local REITs only.

Why not add a little more exposure by going regionally?
 

kurtgoh

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This one is a good consideration if you just like local REITs only.

Why not add a little more exposure by going regionally?

yeah, both seems to be good REITs ETF.

personally, i also prefer regional.
Somehow, i feel local REITs are pretty saturated..
 

jacky5297

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2 years might be too short a time horizon for REITs, just my 2 cents.

First Reit is out of my portfolio few months ago due to its sponsor issue, not sure the status.

A Reit recent drop is a good buy but it’s over now, back to its recent high within weeks.

I am reducing my Reits gradually and invest the $$ into IWDA, getting busier with my active income, so switching to more passive investment.

Reits requires regular monitor (monthly at least), especially right issue, change of sponsor, etc.
 

MichealScott

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In the same situation as you now TS. Planning to start my dividend portfolio soon.

Here is my plan for my portfolio..
1. High Div. Yield ETF
2. REIT
3. High Yield stock (>6%)
4. Low Yield stock, High potential for div. growth
5. Decent Yield stock, High Growth

Haven't really shortlist any stocks yet..just a general guideline for me.

Sent from Stamford Bridge using GAGT
 
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