There are total of 40 Singapore REITs, a popular investment option for retirement through passive income. However, not all the Singapore REITs are profitable, an investor could lose money if choosing the wrong one, eg. pursuing the highest yield REIT. REIT is an integrated investment between stock market and property market, knowledge of both markets are required to be successful. Let’s learn the key points from FREE Singapore REIT Investing Course by Dr Tee:
1) REITs are collective investment schemes that invest in a portfolio of income generating real estate assets such as shopping malls, offices, hotels or serviced apartments and hospitals. It is also a type of security that can trades on major exchanges like other listed securities.
1.1) Assets of REITs are professionally managed ie REITs Manager.
1.2) Revenues are derived mostly from rental payments, >90%.
1.3) Net income generated from assets must distributed at least 90%, quarterly or half yearly to unit holder.
2) 7 Risk factors for REITs analysis are :-
2.1) Market Risk and Income Risk which are intervene each other
2.2) Foreign Country risk especial currency exchange rate change
2.3) Concentration risk – depend on single property or few tenants
2.4) Leverage risk – revalue down of asset resulting hit gearing limit
2.5) Refinancing risk – unable to secure new loan or new loan at higher cost
2.6) Liquidity risk – difficult to buy/sell portfolio asset
3) 4 common growth strategies adopting by REIT manager are :
3.1) Acquisition – from sponsor or 3rd party
3.2) Asset Enhancement Initiative (AEI) – shopping mall to increase NLA
3.3) Organic growth – positive rental revision and increase occupancy
3.4) Development & re-development – cap limit increase to 25% from Jan 2017
4) 3 Key Criteria in Valuation of REITs:
4.1) DPU – look for stable or growing adjusted DPU
4.2) NAV – look for growing NAV & lower PB
4.3) Debt – look for lower interest cost & lower gearing
FREE Singapore REIT Investing Course by Dr Tee:
Master 5 REIT Investing Strategies
1) Identify Giant REIT stocks for safe investment in long term.
2) Time for golden opportunity to buy REIT and Properties during Global Financial Crisis.
3) Optimism Strategies as investment clock for REIT – When to buy, When to sell.
4) Know the interactions of macroeconomic indicators and REIT stocks in bullish and bearish markets.
5) Market Outlook for global stock markets and REIT sector.
View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:
Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com
