But they are also more uncertainty with them. You cannot separate attractiveness and uncertainty, but you have to build up the competency to pick out the good ones.
(click here to view a larger table)
Rickmers look very attractive at 13% yield, but that is based on historical cash flow. What you need to know is that much of its cash flow from the ship charters was secured in 2007 at the height of the shipping cycle. In the future, they would have a problem covering that dividend yield. Still I was surprised by the fall.
The office REITs have fallen a fair bit due to the oversupply situation while the hospitality REITs are affected by the downturn in the tourism sector.
The industrial REITs look very attractive, but you have better buffer for their rental to be cut due to the cost competitive issues in Singapore and poorer manufacturing outlook.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- My Dividend Experience Investing in UCITS iShares iBond Maturing in 2028. - April 23, 2024
- We Invest into Popular Funds When They Are Popular, Exactly When They Started Turning to Shxt. - April 22, 2024
- Meal Prep 2.0 – Cooking Your “Go-to” Meal that You Look Forward to Eating Everyday. - April 21, 2024
BlueKelah Chan
Thursday 20th of August 2015
with the looming danger from interest rate rise, REITs are stuffed. Just wait till those with quality assets become dirt cheap then buy, Easy as.
Kyith
Thursday 20th of August 2015
Hi bluekelah,
By quality assets u meant reits with quality assets or do not consider them at all?