Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Wednesday, November 30, 2011

The Reit myth busted

The Reit myth busted:

'via Blog this'

This is one interesting article which is worth reading again. However, I don't really agree with its report. He uses an example of CMT to illustrate how rights have resulted in negative cash flow for us, retail investors. But he failed to consider the increase in number of units that the retail investor holds, which results in an overall increase in value of her investments.

In fact, according to Lim and Tan (http://sreit.reitdata.com/2011/11/28/reits-%E2%80%93-lim-and-tan/), total shareholder return is 127% which is much more than the dividends that she has received. Lim and Tan is also right to say that we can sell our nil-paid rights instead of subscribing, thus generating more returns.

So is the REIT myth busted by the author of the article? I don't think so. I think Lim and Tan hit a home-run in their report about tweaking of rules on how managers should be compensated (and not by acquisition)

No comments:

Post a Comment