How many Singapore REITs are having Perpetual Securities?
By REIT-TIREMENT  •  October 17, 2021
Previously I've blog about Which Singapore REIT had the Most Frequent Equity Fundraising? Besides EFR, there is another way to raise funds without increasing gearing, which is through perpetual securities. Perpetual securities are also known as perps, perpetual bonds or perpetual notes and the interest rate is higher. In fact, with perps, the existing gearing could even be reduced. Image by Tumisu from Pixabay For perps, there is no maturity date, therefore perps are treated as equity instead of debt. The coupon payment (interest or dividend in other terms) could be stopped/deferred at any time without the holders' consent. Though there might be a call schedule, it is up to the issuer's decision whether to redeem it or not. If you would like to read for more detail about perpetual securities, check out the following: 1) Understanding perpetual securities by Money Sense 2) Perpetual Bonds and REITs by Investment Moat 3) This is What You Should Know About Perpetual Bonds by Zuu Online 4) Perpetual Bond by Investopedia...
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I am Vince and welcome to my blog. I started this blog on 1st January 2019. Since the start of my investment journey, I have been fond of REITs because of its dividends. REITs allowed you to become a property landlord and get rental income without having to fork out large sum of initial capital, look out for tenant as well as manage the properties ...

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