Author: PropInvestSG

6 types of REITs in Singapore and how to invest

The Singapore REIT market has grown from just 1 in 2004 to 37 in 2017. For someone new to investing, how can one decide on what REIT to invest when there are so many? In this post, I introduce the 6 types of REITs in Singapore and a few tips on how get started with investing. The 30,000 feet view First, the 30,000 feet view on the Singapore REIT market. There are 6 classes of REITs in Singapore and pictures speak a thousand words so here they are –...

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5 things you should know about Keppel DC REIT

Keppel DC REIT released their second quarter 2017 financial results in July. This post is a review of their results and the top 5 things you should know from their announcement. Key highlights Distribution or dividend per unit in the first half of 2017 has improved compared to the first half of 2016, rising from 3.34 SG cents to 3.63 SG cents. There’s been an improvement between second quarter 2017 and second quarter 2016 too. Gearing ratio of 27.7% remains one of the lowest among Singapore REITs. The average leverage for Singapore REITs is approximately 35%. Distribution or dividend...

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5 REITs with low gearing ratios

Why is A REIT’s gearing ratio important? The gearing ratio for a REIT is an important indicator as to how healthy it is. Higher gearing ratios mean that the REIT is paying banks and bondholders a higher amount of interest expense, and that would mean a lesser amount of money available for distribution to you as investors. If there’s one thing to take away from this post, a lower percentage of gearing is always better than a higher one. Two reasons for this Interest expense is likely lower, resulting in a higher net property income margin These REITs have...

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How to read a Singapore REIT’s acquisition document – Tsing Yi Case study

On the back of MLT’s acquisition of Tsing Yi warehouse in Hong Kong, I thought I’d do a comprehensive “How to” on understanding the announcement they put out and what it means for investors. I will point out the implications of certain portions for investors and briefly explain how the Tsing Yi acquisition affects them. The document will be screen-shot to make it easy for us to get through it. MLT’s acquisition announcement consisted of 23 pages. Let’s start with page 1. In this acquisition, MLT the manager is making the announcement. HDBS Institution Trust Services (Singapore), the “Trustee”...

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6 types of REITs in Singapore and how to invest

The Singapore REIT market has grown from just 1 in 2004 to 37 in 2017. For someone new to investing, how can one decide on what REIT to invest when there are so many? In this post, I introduce the 6 types of REITs in Singapore and a few tips on how get started with investing. The 30,000 feet view First, the 30,000 feet view on the Singapore REIT market. There are 6 classes of REITs in Singapore and pictures speak a thousand words so here they are...

Read More

How much should you allocate to REITs in your portfolio?

For those who have been working for some time, one question that comes up to me often when I speak with these people is the question of asset allocation. How much of my portfolio should I put in REITs? To tackle the question, let’s first start with how much you should put in stocks, which is an umbrella term that covers REITs. One school of though advocates putting a percent into bonds based on your age. If you’re 30 and have S$10,000 to invest, put S$3,000 into bonds. If you’re 40, put 40% so on and so forth. The...

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5 things you should know about Keppel DC REIT

Keppel DC REIT released their second quarter 2017 financial results in July. This post is a review of their results and the top 5 things you should know from their announcement. Key highlights Distribution or dividend per unit in the first half of 2017 has improved compared to the first half of 2016, rising from 3.34 SG cents to 3.63 SG cents. There’s been an improvement between second quarter 2017 and second quarter 2016 too. Gearing ratio of 27.7% remains one of the lowest among Singapore REITs. The average leverage for Singapore REITs is approximately 35%. Distribution or dividend...

Read More

5 REITs with low gearing ratios

Why is A REIT’s gearing ratio important? The gearing ratio for a REIT is an important indicator as to how healthy it is. Higher gearing ratios mean that the REIT is paying banks and bondholders a higher amount of interest expense, and that would mean a lesser amount of money available for distribution to you as investors. If there’s one thing to take away from this post, a lower percentage of gearing is always better than a higher one. Two reasons for this Interest expense is likely lower, resulting in a higher net property income margin These REITs have...

Read More

How to read a Singapore REIT’s acquisition document – Tsing Yi Case study

On the back of MLT’s acquisition of Tsing Yi warehouse in Hong Kong, I thought I’d do a comprehensive “How to” on understanding the announcement they put out and what it means for investors. I will point out the implications of certain portions for investors and briefly explain how the Tsing Yi acquisition affects them. The document will be screen-shot to make it easy for us to get through it. MLT’s acquisition announcement consisted of 23 pages. Let’s start with page 1. In this acquisition, MLT the manager is making the announcement. HDBS Institution Trust Services (Singapore), the “Trustee”...

Read More

8 things to know about MLT’s Tsing Yi acquisition

MLT announced the acquisition of the Tsing Yi warehouse in Hong Kong yesterday. Here are a few things that investors should take note of MLT’s Tsing Yi acquisition. Accretive Tsing Yi acquisition The acquisition is expected to be accretive, with DPU rising from 1.887 SG cents to 1.919 SG cents. MLT Tsing Yi acquisition DPU accretion The acquisition will be funded with a mix of debt and equity. MLT is combining the purchase with redemption of perpetual existing securities so the total amount of funds raised will be slightly higher. Sources and uses of funds for Tsing Yi acquisition  Uses...

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3 slides you should know from CRCT’s second quarter results

Capitaland retail china trust released their quarterly results on 27 July 2017, and reception by analysts have been good. On most fronts, there has been an improvement in performance, on a portfolio aggregate basis and at the individual property. Here are three main takeaways that investors should know from the result briefing. Gross revenue, net property income and distributable income are all up both on a quarterly and half yearly basis. Implies: Growth is on an uptrend since both quarterly and half yearly results have turned in well. All properties in the portfolio except for Qibao and Wuhu registered...

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REITs that pay out dividends frequently

As REIT investors, we want to continually see income and dividends being credited into our accounts. Don’t wait 6 months when these REITS provide you with a quarterly pay check. One advantage of getting a quarterly pay check (versus semi-annual), is the impetus to be invested in the market, regardless of capital gains or losses. Analysts have done many studies on whether market timing works, and the conclusive evidence by Schwab, NYU, and Time Magazine, to name a few, is that it doesn’t. What actually provides investors with a net positive gain in the stock market is time in...

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