Shares & Derivatives
A 24% Dividend SGX-listed REIT? What’s Wrong with PRIME US REIT
By Investmoolah  •  May 8, 2023
Its absolutely surprising to see a SGX listed REIT valued at almost a 24% dividend yield. It will take only about 4-5 years to recuperate your capital and to add to that, the REIT's properties are freehold in nature! That means a perpetual 20+% dividend yielder. Let's see a screenshot of the current financial situation of PRIME US REIT: It seems the market feels the REIT manager of PRIME is not seemingly doing a good job and the US commercial market it is in terrible shape. Let's look at a few factors which could explain the current pricing. Poor US Commercial Real Estate Market and Overleveraged A simple google search will show that the US office space is hit with double digits vacancy and falling valuations. PRIME and Manulife REIT are reporting downward valuation of their properties; the chief reason is due to the higher risk free rates that their valuers used. Keppel Pac Oak on the other hand...
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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...
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