Layers
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REITs investors usually look at yield/risk, debt leverage, price/NAV, growth potential, term of lease and most importantly the management team. REITs that frequently use rights issue for funding is usually a nono. REITs without good tenants or locations is also nono. REITs that's highly leveraged (like mortage REITs) is also nono.
Hmmm, normally I look at P/B and gearing, sometimes location of the REIT.
Need to look at so many things ah?

These are the so many things to look at......
- Gearing
- Weighted Average Lease Expiry (WALE)
- Debt expiry profile
- Land lease expiry profile
- Rental reversions track record
- Quality of assets (location, age and design of the properties)
- Type of assets (retail, commercial, industrial, healthcare, hospitality etc.)
- Management execution track records (lease renewal/ acquisitions/ AEIs/ rights issue/ private placements/ capital-recycling)
Plife if consolidate to 2.4 can buy?
Comparing REITs to owning a physical residential property as an investment:
REITs are more liquid.
Buying REITs regularly is akin to paying for a mortgage. While one can get leverage buying property, the interest eats into your returns.
Cost of buying property is higher.
Possibly getting better yields compared to property rental. Ability to diversify according to market conditions.
REITs returns also seem more guaranteed, in a sense that REITs pay out 90% of net income. Property rental is dependent on whether one can secure a tenant.
Would one be able to invest in REITs in replacement of physical property investment? Any inputs appreciated. Thanks
Comparing REITs to owning a physical residential property as an investment:
REITs are more liquid.
Buying REITs regularly is akin to paying for a mortgage. While one can get leverage buying property, the interest eats into your returns.
Cost of buying property is higher.
Possibly getting better yields compared to property rental. Ability to diversify according to market conditions.
REITs returns also seem more guaranteed, in a sense that REITs pay out 90% of net income. Property rental is dependent on whether one can secure a tenant.
Would one be able to invest in REITs in replacement of physical property investment? Any inputs appreciated. Thanks
Buying properties allow me to leverage... i can buy a 1mill property with 100k. And get 2-3% yield of the 1mill annual thru rental.
Correct me if I'm wrong. Your rental would not be likely to cover your installments. So your 2-3% yield will be zero?
Compared to a conservative 4-5% yield for REITs? Instead of servicing the mortgage, I buy REITs monthly instead.
Of course, I have ignored plenty of other factors such as possible better capital gains with physical properties or buying REITs at all time high prices
Yes, after mortgage, i will have 0 yield. But after 30 years, if i sell the unit, i will have 100% of 1mill.
With 200k in reits, after 30 years, you wont have 1mill.
Yes, after mortgage, i will have 0 yield. But after 30 years, if i sell the unit, i will have 100% of 1mill.
With 200k in reits, after 30 years, you wont have 1mill.
Yes, after mortgage, i will have 0 yield. But after 30 years, if i sell the unit, i will have 100% of 1mill.
With 200k in reits, after 30 years, you wont have 1mill.
Compounded dividends over 30 years is no joke... Assume the dividend yield hovers around 5%.
200000*(1.05)^30 = 864388.475
If u sell the unit, where are u gonna live?
With 200k in REITs, compound the distributions at 5% over 30 years will give u more than $1.7m![]()
Compounded dividends over 30 years is no joke... Assume the dividend yield hovers around 5%.
200000*(1.05)^30 = 864388.475
how u get 1.7 m?
If u sell the unit, where are u gonna live?
With 200k in REITs, compound the distributions at 5% over 30 years will give u more than $864k![]()
The unit is additional property.. i feel that properties is just another form of investment... i own reits and dividend shares too...
Some people just feel that property is safer as you own the property.
But i didnt realise 200k compunded can be so much. Looking at my cpf now...... $_$ if i can live until my retirement age
