Right now, Starhill Global REIT (SGX: P40U) has a unit price of S$0.71.
At that price, the REIT has a distribution yield of 6.3%. That looks attractive amid the low interest rate environment we are currently in.
Would the high distribution yield make Starhill Global REIT a buy? It’s not that straightforward though since distribution yield is not the only thing REIT investors should look at.
Here, let’s explore using my 10-step guide to pick the best Singapore REITs to determine holistically whether Starhill Global REIT makes a great investment.
As a summary, here are the 10 steps I use to pick the best Singapore REITs:
Growth in Gross Revenue and Net Property Income Growth in Distribution Per Unit Property Yield of Between 5% and 9% Gearing Ratio of Below 40% Interest Coverage Ratio of Above 5x Healthy Portfolio Occupancy Rate Positive Rental Reversions Presence of Growth Prospects Acceptable Price-to-Book Ratio