tag:blogger.com,1999:blog-3008642600708028986.post3005364315875863884..comments2023-09-07T20:42:08.035+08:00Comments on Market Uncle's Blog: Investing in REITs - Really for the yield?market unclehttp://www.blogger.com/profile/16460144334144587714noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-3008642600708028986.post-11057316958849408992010-11-30T20:33:25.202+08:002010-11-30T20:33:25.202+08:00price is the most important factor
in investing wh...price is the most important factor<br />in investing whether it is reit,<br />bond, commodity, foreign currency.<br />just make sure all are not value<br />traps.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-41588516753262839912010-03-02T23:00:48.576+08:002010-03-02T23:00:48.576+08:00Yes, have been very busy taking care of my baby gi...Yes, have been very busy taking care of my baby girl. Hope to find time soon.Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-87715636635123849792010-03-02T22:41:46.859+08:002010-03-02T22:41:46.859+08:00Hi Why so quiet for so long? Too busy making money...Hi Why so quiet for so long? Too busy making money to blog? Looking to hear from you soon.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-81227729737604307712010-02-10T22:08:59.242+08:002010-02-10T22:08:59.242+08:00Hi market uncle
I am a vistor who happened to cha...Hi market uncle<br /><br />I am a vistor who happened to chance upon ur blog and took the liberty of pasting ur article onto an investing forum for others to share.<br /><br />Hope you dun mind.<br /><br />Many thanks<br /><br />Rgds<br />Art<br /><br />The forum thread is as such:<br />http://afralug.com/wsforum/showthread.php?tid=3521Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-86446721168251988362010-02-10T22:04:56.717+08:002010-02-10T22:04:56.717+08:00Hi market uncle
I am a vistor who happened to cha...Hi market uncle<br /><br />I am a vistor who happened to chance upon ur blog and took the liberty of pasting ur article onto an investing forum for others to share.<br /><br />Hope you dun mind.<br /><br />Many thanks<br /><br />Rgds<br />Art<br /><br />The forum thread is as such:Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-84690715134100878492010-01-11T21:53:02.368+08:002010-01-11T21:53:02.368+08:00If a business can only improve their ROE by levera...If a business can only improve their ROE by leverage, then is that a good business to be in?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-36571432565811488082010-01-10T22:39:34.754+08:002010-01-10T22:39:34.754+08:00But why would we expect REITS to be fully funded b...But why would we expect REITS to be fully funded by equity? Why not add some debt to improve the ROE?<br /><br />Of course, I know that some mgt would over do it by overgear.....dseahttps://www.blogger.com/profile/15659015361274204794noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-2289379141614613212010-01-10T17:40:43.057+08:002010-01-10T17:40:43.057+08:00Hi financialfreedom,
You are right, technically...Hi financialfreedom,<br /> You are right, technically these REITs don't just pay interest but most (if not all) have no intention to pay off their loan. They only start to reduce their loan to keep within comfortable debt-to-equity or any similar ratio in order to get a good credit rating. Hope this clears.Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-72385748408053644822010-01-05T12:23:04.718+08:002010-01-05T12:23:04.718+08:00Can clarify when you say that REITs are only repay...Can clarify when you say that REITs are only repaying the interest payments and not the loan itself?<br /><br />From what I understand, Suntec REITs issue rights to repay their debts too correct?financialfreedomhttp://sgfinancialfreedom.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-68856052269180378952009-12-28T22:43:00.716+08:002009-12-28T22:43:00.716+08:00Agreed, better to view REITS as cyclicals, rather ...Agreed, better to view REITS as cyclicals, rather than as long term investments.BlackCathttp://www.profithunting.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-31759825438063524082009-12-28T10:15:09.255+08:002009-12-28T10:15:09.255+08:00Hi all,
I'll just talk about DPU as yield ...Hi all,<br /><br /> I'll just talk about DPU as yield is determine by price paid.<br /><br /> What I'm trying to say was that the perpetual-debt-driven business model of REIT does not really allow for a growing DPU for sustained periods. It can be high for the first few years but as DPU accretive deals get scarce (from competition or ppty bubble) or refinancing draws near, DPU correction occurs. <br /><br /> Thus, if one is savvy or fortunate enough to get into a REIT at a cheap price, assuming the average forward DPU is more or less sustainable without growth, the resulting yield thus 'locked' in already proof the investment worthwhile and expected capital appreciation a good bonus.Market Unclehttps://www.blogger.com/profile/13926458268187430049noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-47123898580885705832009-12-27T19:19:45.039+08:002009-12-27T19:19:45.039+08:00I always feel you should get into something when i...I always feel you should get into something when it is still new and there is little competition. Once everyone starts entering the fray then returns get diluted and when the masses start moving in that direction, most of the potential gains are lost.<br /><br />When A-REIT, CMT, CCT and Suntec first came out, they were the first 4 REITS and had strong backing and asset portfolios. Subsequently, some of the REITS which came onto the market were sub-standard and didn't address issues of debt and growing their portfolio adequately, resulting in them becoming "bad eggs". Also, the concept of REITs had caught on like a frenzy and almost everyone started "securitizing" property assets into REITs or Trusts.<br /><br />For myself, I bought into Suntec REIT during IPO and have enjoyed nearly 5 full years of very good yield, plus capital appreciation to boot at today's market price. I agree it's the price you buy in which determines if you can have a sustainable long-term decent yield, and it also depends on the timing.<br /><br />For example, buying into cash-rich companies while their share prices are depressed will give you very good yields for many, many years to come, without undue risk.<br /><br />Regards,<br />MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-22178013067663007062009-12-27T08:28:37.092+08:002009-12-27T08:28:37.092+08:00For REIT almost all earning are paid out as divide...For REIT almost all earning are paid out as dividend.<br /><br />Effectively your earning yield will be your dividend yield.<br /><br />It will be possible to get a higher earning yield with a lower leverage.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3008642600708028986.post-57288491404074087482009-12-26T22:12:54.372+08:002009-12-26T22:12:54.372+08:00Actually i think it depends on the entry price. If...Actually i think it depends on the entry price. If entered at an attractive price, the reit presents opportunities for decent price appreciation, at the same time offering a good annual dividend yield.<br /><br />Effectively, it functions similar to a dividend stock, although the internal workings is somewhat different. <br /><br />At the end of the day, i think a reit is just another investment vehicle, like equities, bonds, unit trust, properties etc. And whether is it a good investment depends on whether you can get it at an attractive enough entry price.phantasianoreply@blogger.com