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 ......