General S-REITs Discussion Thread

[thretiredDad]

When the dividends you get annually is twice your expenditure (for a big safety margin), then you can retire loh. Since you got kids, after you uplorry, you can pass them your reits as an inheritance. A good reit is like a goose that lays golden eggs which get bigger and bigger over the years.

If you want to retire via drawing down of capital, then just have a classic mix of reits / equities and bonds.

That’s one way to look at it, but I see it differently.

If you treat REITs as “golden geese,” you also have to accept that the goose itself may shrink in size over time. Dividends can be cut, property values can drop, and your capital isn’t guaranteed. Passing down REITs as inheritance sounds nice, but it depends on whether the REIT is still performing well years later.

With bonds, you get your coupons and eventually your principal back at par (unless the issuer defaults). There’s a built-in certainty at maturity or when the bond is called.

But with REITs, while the dividends may look attractive, the capital value can fluctuate — and there’s no guarantee it will recover to your original investment amount + dilution or rights issue

Many people make the mistake of buying REITs as a substitute, just because they can’t afford the minimum $250,000 ticket size for bonds. But fundamentally, they are not the same product

That’s why I always say: don’t confuse REITs with bonds.

 

[philips107]

That’s one way to look at it, but I see it differently.

If you treat REITs as “golden geese,” you also have to accept that the goose itself may shrink in size over time. Dividends can be cut, property values can drop, and your capital isn’t guaranteed. Passing down REITs as inheritance sounds nice, but it depends on whether the REIT is still performing well years later.

With bonds, you get your coupons and eventually your principal back at par (unless the issuer defaults). There’s a built-in certainty at maturity or when the bond is called.

But with REITs, while the dividends may look attractive, the capital value can fluctuate — and there’s no guarantee it will recover to your original investment amount + dilution or rights issue

Many people make the mistake of buying REITs as a substitute, just because they can’t afford the minimum $250,000 ticket size for bonds. But fundamentally, they are not the same product

That’s why I always say: don’t confuse REITs with bonds.

I think the disadvt of REITs is also the advt.

While the price can drop, and dividend can get cut, the opposite (advt) can also happen (price and dividend up).

e.g.
Based on historical data, ParkwayLife Reit DPU has been increasing every yr (not a prediction for the future).

 

[apriliasiao]

That’s one way to look at it, but I see it differently.

If you treat REITs as “golden geese,” you also have to accept that the goose itself may shrink in size over time. Dividends can be cut, property values can drop, and your capital isn’t guaranteed. Passing down REITs as inheritance sounds nice, but it depends on whether the REIT is still performing well years later.

With bonds, you get your coupons and eventually your principal back at par (unless the issuer defaults). There’s a built-in certainty at maturity or when the bond is called.

But with REITs, while the dividends may look attractive, the capital value can fluctuate — and there’s no guarantee it will recover to your original investment amount + dilution or rights issue

Many people make the mistake of buying REITs as a substitute, just because they can’t afford the minimum $250,000 ticket size for bonds. But fundamentally, they are not the same product

That’s why I always say: don’t confuse REITs with bonds.

Normal ppl don't play proper bond ladder as it is simply out of reach. that's y either REITS or ETF bonds.

 

[thretiredDad]

Normal ppl don't play proper bond ladder as it is simply out of reach. that's y either REITS or ETF bonds.

That’s why REITs should be seen as part of an income portfolio, not a replacement for bonds. Even the legendary Dividend Warrior — who first inspired so many investors with his 100% REIT portfolio — has since moved on to add banks and even US stocks. That itself shows you can’t just rely on REITs forever.

 

[DevilPlate]

That’s why REITs should be seen as part of an income portfolio, not a replacement for bonds. Even the legendary Dividend Warrior — who first inspired so many investors with his 100% REIT portfolio — has since moved on to add banks and even US stocks. That itself shows you can’t just rely on REITs forever.

Nobody advocates 100% Sreits right
But u advocates zero Sreits and all in Bonds during retirement?

 

[thretiredDad]

Nobody advocates 100% Sreits right
But u advocates zero Sreits and all in Bonds during retirement?

Nobody? Many people are treating REITs dividends as the holy grail of passive income. I’ve even seen some advocate converting all their savings into REITs and quit their job to relying on it entirely for passive income and retire for good at 30+

And yes, that’s me. Once I fully retire with no salary, I wouldn’t risk my capital just for recurring “dividend” income — I’d sell all my S-REITs and go fully into bonds instead. But since I still have a passive job with a salary and CPF contributions, I’m currently 93/7 in REITs and bonds, with some hope for that ‘lottery’ upside.

 

[DevilPlate]

Nobody? Many people are treating REITs dividends as the holy grail of passive income. I’ve even seen some advocate converting all their savings into REITs and quit their job to relying on it entirely for passive income and retire for good at 30+

And yes, that’s me. Once I fully retire with no salary, I wouldn’t risk my capital just for recurring “dividend” income — I’d sell all my S-REITs and go fully into bonds instead. But since I still have a passive job with a salary and CPF contributions, I’m currently 93/7 in REITs and bonds, with some hope for that ‘lottery’ upside.

who are yr many people here?

 

[thretiredDad]

who are yr many people here?

Many people
on TikTok, YouTube, Edmw, Facebook etc

try searching “reits for retirement”

 

[DevilPlate]

Many people
on TikTok, YouTube, Edmw, Facebook etc

try searching “reits for retirement”

MM here higher quality

 

[apriliasiao]

Many people
on TikTok, YouTube, Edmw, Facebook etc

try searching “reits for retirement”

Ya. there are alot of those idiots anyhow spread lousy investment advise. Agree that all in REITS is a receipt for disasters in long term.

 

[elvintay07]

Nobody? Many people are treating REITs dividends as the holy grail of passive income. I’ve even seen some advocate converting all their savings into REITs and quit their job to relying on it entirely for passive income and retire for good at 30+

And yes, that’s me. Once I fully retire with no salary, I wouldn’t risk my capital just for recurring “dividend” income — I’d sell all my S-REITs and go fully into bonds instead. But since I still have a passive job with a salary and CPF contributions, I’m currently 93/7 in REITs and bonds, with some hope for that ‘lottery’ upside.

no right or wrong la. If happy with 2-3% can go bonds. If want 5-6% can go reits. Want power and got balls can go crypto. Personally I don’t believe in “safe” assets. I follow the amdk and Chinese entrepreneurs. 破釜成舟。

 

[Euqorab]

Many people
on TikTok, YouTube, Edmw, Facebook etc

try searching “reits for retirement”

Ya. there are alot of those idiots anyhow spread lousy investment advise. Agree that all in REITS is a receipt for disasters in long term.

Many people are lurking around in this forum leeching knowledge from gurus here

but without understanding the basics and just gone on to their social media and spout their half baked knowledge

sometimes they just need hard lessons, such as meeting sampan reits like soilbuild, lippo and what have you…

the former? dropped like grapes and I held on the belief the dividends could allow me to break even. What happened? It never happened because the sponsor lowballed and privatised it!

the latter? No expalantions needed.

 

[sky1978]

Many people are lurking around in this forum leeching knowledge from gurus here

but without understanding the basics and just gone on to their social media and spout their half baked knowledge

sometimes they just need hard lessons, such as meeting sampan reits like soilbuild, lippo and what have you…

the former? dropped like grapes and I held on the belief the dividends could allow me to break even. What happened? It never happened because the sponsor lowballed and privatised it!

the latter? No expalantions needed.

How low was the privatisation offer vs book value?

 

[Euqorab]

How low was the privatisation offer vs book value?

I must clarify before I get sued

They did not lowball as they offered the typical premium over last few months average traded prices

But it was offered during period of depressed unit prices

and hence I never had the chance to recover my paper losses

 

[philips107]

I must clarify before I get sued

They did not lowball as they offered the typical premium over last few months average traded prices

But it was offered during period of depressed unit prices

and hence I never had the chance to recover my paper losses

wow,
ipo price : 78c
privatization price : 55c

https://sg.finance.yahoo.com/news/soilbuild-reit-ipo-oversubscribed-103519443.html
https://sg.finance.yahoo.com/news/soilbuild-group-chairman-blackstone-privatise-031827940.html

 

[Euqorab]

wow,
ipo price : 78c
privatization price : 55c

https://sg.finance.yahoo.com/news/soilbuild-reit-ipo-oversubscribed-103519443.html
https://sg.finance.yahoo.com/news/soilbuild-group-chairman-blackstone-privatise-031827940.html

I still feel sore about this
But there possible no losses due to dividends
But that not the point because it as good as I giving them interest free loan

 

[Euqorab]

I still feel sore about this
But there possible no losses due to dividends
But that not the point because it as good as I giving them interest free loan

Same thing happened for M1 and SPH

pui

 

[DriftKing]

Nobody? Many people are treating REITs dividends as the holy grail of passive income. I’ve even seen some advocate converting all their savings into REITs and quit their job to relying on it entirely for passive income and retire for good at 30+

And yes, that’s me. Once I fully retire with no salary, I wouldn’t risk my capital just for recurring “dividend” income — I’d sell all my S-REITs and go fully into bonds instead. But since I still have a passive job with a salary and CPF contributions, I’m currently 93/7 in REITs and bonds, with some hope for that ‘lottery’ upside.

Actually, from how I see the past prices, REIT need to be rotated in or out at different cycle (ignoring bad sponsors). Buy when high interest, sell/keep whole low interest.

Always see people advocate CICT a definitely buy and hold when it dipped below 1.9 for e.g (I was dumb to not follow and traded along). Although not sure if reits will head back to the highs back in covid and pre covid give tariffs headwinds

 

[sky1978]

I still feel sore about this
But there possible no losses due to dividends
But that not the point because it as good as I giving them interest free loan

Book value has already dropped from the IPO price to the privatisation offer price.

Along the way, they did perhaps two preferential offers at a discount to book value, which contributed to the drop in book value. Did you accept your preferential allotment? If you have done that, you probably won't be worse off even if they delist it at the 50c++ book value. And that offer price is already the pre-COVID 2019 price; many REITs are still struggling to get back to the pre-COVID-2019 level.

 

[limster]

Nobody advocates 100% Sreits right
But u advocates zero Sreits and all in Bonds during retirement?

when you look at some local bloggers portfolio, they are heavily concentrated in REITs, its like the 'old' DW portfolio before he became "DTW".

I like dividends but I also know its common sense not to be overconcentrated in one sector like REITs. When it comes to dividend stocks, there are so many non-REIT blue chip like the banks, Comfort Delgro, Singtel, Sembcorp which give good dividends as well (vested in all 3).