Shares & Derivatives
The dangers of investing in reits (With pictures and stock recommendations!)
By Don't anyhow  •  April 6, 2016
Too long didn't read (TLDR) version: I'd advocate buying AAreit, Starhill Global, Frasers commercial trust on their - Attractive valuation - Cash flows being able to meet dividend payments - Lower risk of private placements that dilute your shareholdings - 6-7% yield There are plenty of blogs/newspaper articles going about how reits are the best source of stable passive income for shareholders, will settle your retirement plans, a godsend, the 2nd coming and will take care of our nation’s problems. (Obviously these people have not heard of DBS 4.7% preference shares, or a stock called VICOM) This then leads to a horde of people dumping cash in reits and uttering the oft-quoted line ‘it generates a steady stream of passive income’ and act all investment-savvyish. Don’t get me wrong, these people have done extremely well in the initial rush of reits listings (think 2011) If you ......
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By Don't anyhow
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