Shares & Derivatives
Elite Commercial REIT High Dividend Yield of 7% But May Not Be As Safe As One Thought- 3 Things To Watch Out For.
By Investment Income for Life  •  June 8, 2022
Elite Commercial REIT ("EC REIT") debuted in early 2020 on SGX mainboard at GBP 0.705 per unit which is 3.7% higher than its IPO price of GBP 0.68 per unit. Ever since then (in particularly the last 52 weeks), its price has hovered mostly between GBP 0.610 per unit to GBP 0.680 per unit. Most recently, it was announced that its major tenant, the UK government, has agreed to the removal of "break clauses" for its rented properties from EC REIT during negotiation which thus translates into a long and stable WALE of around 5.5 years as of March 2022. The current 7% dividend yield is one of the highest among the Singapore REITs. The UK government also seemingly appears to be an AA-rated solid tenant and the lease is on triple net lease basis. However, I am staying away from Elite Commercial REIT due to 3 main concerns which I will further elaborate below....
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.

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