REITs is a slightly different class compared to common companies as majority of the profits come from rental revenue and fair value adjustment to their properties.
As a result, we can use a slightly different method to assess REITS, and this is my simple checklist for a REIT. Note that the information is not mine solely, and some are taken and adapted from other blogs too (can't list them out as there are too many).
Attribute
|
Checklist
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Gearing
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30% to 35%
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Yield
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At least 5% to 8%
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DPU over the years
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Consistent and Increasing
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Stock price
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Below or near NAV
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Type
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Retail, office/ commercial, industrial/
logistic, healthcare
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Geographic exposure
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China, Singapore, Indonesia, Malaysia, Australia, etc
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Most primarily invest in REITs for the dividends, so it is important to look into the checklist above to ensure that the dividends paid will be substantial and consistent.
1 comments:
Write commentsExcellent work!
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