I always compare my leveraged returns against the best practices in the market, such as professional REIT managers borrow banks to make money for their Real Estate Investment Trusts (REIT). This allows me to evaluate the risks that I am taking vs the potential returns.
OUE Com Reit (TS0U.SI) has fallen 12.5% the past month, is it time to buy?
Mapletree Ind Tr (ME8U.SI) is a potential entry using one of my favorite setups.
Frasers L&I Tr (BUOU.SI) is a potential entry using one of my favorite setups.
CapitaCom Trust (C61U.SI) is a potential entry using one of my favorite setups.
First Reit (AW9U.SI) is a potential entry using one of my favorite setups.
Everyone wants to buy low, but how low is low enough?
One of my favorite buy setups is the use the weekly chart together with slow Stochastics. When it makes a “hook” in the oversold zone, its time to consider entering, as it may be low enough. For higher probability, combine it with candlesticks reversal pattern.
The following are Reits with increasing DPU. Some of them have pretty low dividend yield, which I have to wait for a major correction before collecting.
- Parkway Life (wait for major correction)
- First Reit
- Mapletree Ind
- Keppel DC (wait for major correction )
- Capita Com
- Mapletree Com
- Mapletree GCC
- Fortune (wait for major correction)
- Ascendas HTrust
Last week, my REITs shifu invested in Ascendas HTrust, which I also followed yesterday, because I concurred with his assessment.
- Yield : 6.9%
- Gearing : 33%
- P/NAV : 0.93
- Run 11 hotels
- By NPI, Australia (50%) + Japan (26%) + Singapore (15%) + China (9%)
I like the fact that the DPU trend has been very stable through the years. I am also speculating that Australia will growing in next couple of years. For me, this is a long term investment and not a short term trade. My yield on cost is 6.87%.
My shifu, Kenny Loh (http://mystocksinvesting.com/), will be conducting his signature REITs course on 30 Sep. If you’ll like to learn how a REITs expert evaluates and selects strong REITs, I strongly encourage you to attend his course. Contact me for a discount code.