Many think that just because of a good year run, REITs are the go to investment. I don’t believe this is the case.
Sectors take turns to outperform. Think about whether REITs can keep going up at this pace.
I fear many are switching to this sector due to low interest rate and that they are the most easily understood instruments.
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 Fee-only Wealth Advisory firm 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.
Sunday 21st of April 2013
Hi Drizzt, So have Singapore REITs mean revert?
Sunday 21st of April 2013
hi momo, i don't think so. In fact the trend is strong. They are getting to frothy prices that still offers a good yield at the expense of risk.
many have left the down rental cycles and the yield that you see now is based on renewing at high rentals.
but if you stay with a good manager i guess it is still better.
take a look at Aims Amp which is doing redevelopment and generating shareholder value.
Friday 19th of October 2012
thank you for sharing this. But I'm pretty familiar with US REITs, so what I was asking for, is sort of the same kind of information but for the Singapore REIT world. I'm not based on Singapore and all what I know about Singapore stocks is pretty much what I find on your website.
Best Regards - habsb
Monday 8th of October 2012
Hi Drizzt thank you. Do you mean that Singapore REIT are NOT mortgage REIT ? (I don't know anything about them). What's their dominant business model then ? Best Regards - habsb
Saturday 13th of October 2012
mortgage REIT invests in mortgages! so when the homeowners pay their mortgages, they pay this REIT. if you would like to know more about the US reit world, you can take a look at this shared book > http://www.scribd.com/doc/27222666/Investing-in-Reits
Tuesday 2nd of October 2012
I've discovered Singapore stocks through your blog, and I'm quite happy with my investments so far. Concerning REITs, could you please explain in a few words the main differences between US REITs (like NYSE:NLY) and Singapore REITs ?
Best Regards -- habsb
Sunday 7th of October 2012
thanks. i hope i lived up to what you require. I am not sure what is the main difference. US have more variety of REITs. i do find mortgage REITs to be the dominant theme there. There are data center REITs lie Equinix if i remember. My friend swears by Equinix. Data center is a pretty interesting domain as well.
Sunday 30th of September 2012
Actually during 2007 the dividend yield spread over the risk free rate was at lows because people were very bullish and thus demeanded less compensation (i.e spread) to take on the risk of investing in reits.
It was during the crisis in 2008 where everyone was panicking did the spreads really shoot up high.
But yes the current spread above the risk free rate is still above the mean value.
Following is a link to a chart of the SIBOR over the years.
Current 3m Sibor is about 0.38%. average reit yield is about 6%. i would agree the reit yields are slightly below their means but the SIBOR is really too low.... and especially with the kind of inflation we are getting. i cant help feel so trapped.