How to Select Singapore REITs with High Dividend and Low Risk?

June 8, 2014 Update. See detail Singapore REITs Fundamental Comparison Table (June 8) here.

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Note: NOT all the REITs have the same risk although they have very attractive distribution yield. High Distribution Yield does NOT mean it is safe. Vice versa, Low Distribution Yield does NOT mean the investment is no good. Investors must KNOW the risks involved when investing in Singapore REITs.

Two visual bubble charts to pick and avoid:

  1. Undervalue Singapore REITs with High Distribution Yield (Value Pick)
  2. Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

Singapore REIT Bubble Chart (Value) June8-2014Singapore REIT Bubble Chart (Risk) June8-2014

See Last Singapore REIT Bubble Charts here.

 

Singapore REIT Fundamental Analysis Comparison Table – 8 June 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 755.37 to 768.55 compare to last post on Singapore REIT Fundamental Comparison Table on May 9, 2014. The index is trading above 20D/ 50D/ 200D SMA with 20D/50D SMA trending up. This is an official uptrend for Singapore REITs.

FTSE ST REIT Index June8-2014

..

  • Price/NAV increases from 1.0022 to 1.0229
  • Dividend Yield decreases from  6.61% to 6.51%.
  • Gearing Ratio decreases from 33.76% to 32.94%
  • Added: Realigare HTrust.
  • Added two columns (Price/NAV High & Low). To my REIT workshop participant, I have uploaded the excel spreadsheet to the Facebook closed group.

Singapore REIT Fundamental Analysis and Comparison Table 8-June-2014

  • In general (base on quantitative analysis and technical analysis), Singapore REIT is at fair value now and the distribution yield is attractive (but with risks). A number of REITs have started a confirmed uptrend base on trend analysis (using Technical Analysis). Buy on Dip can be a good accumulation strategy here for fundamentally strong REIT (well managed WADM & WALE, Diversified Tenant Mix, currency risk, AEI and acquisition to increase DPU, currency hedging).
  • Be extremely careful with those REITs with High Yield. High Yield does NOT mean that it is a good REIT to invest. Religare HTrust offers 9.1% yield but the risk is very high with super low gearing at 7.3%.  It looks very attractive just purely base on the numbers but we still have to do the risk assessment in detail.  I have posted my personal view and Risk Assessment in my Facebook Closed Group for my students. Ex-students who wish to join the facebook page please drop me an email marubozu@mystocksinvesting.com. State your name and your course date so that I can add you into the page.
  • Find out in  the next workshop on “How to pick Singapore REIT for Dividend Investing” to learn how to do Quantitative, Qualitative Analysis and Risk Assessment Plus Identify the Trend on Singapore REITs to apply this accumulation strategy for Singapore REIT.

Singapore REITs Value Pick & Risk Avoidance

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Note: NOT all the REITs have the same risk although they have very attractive distribution yield. High Distribution Yield does NOT mean it is safe. Vice versa, Low Distribution Yield does NOT mean the investment is no good. Investors must KNOW the risks involved when investing in Singapore REITs.

Two visual bubble charts to pick and avoid:

  1. Undervalue Singapore REITs with High Distribution Yield (Value Pick)
  2. Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

See Last Singapore REIT Bubble Charts here.

See detail Singapore REITs Fundamental Comparison Table here.

Singapore REIT Bubble Chart (Value) May9-2014Singapore REIT Bubble Chart (Risk) May9-2014

 

Disclaimer: This is NOT a recommendation to buy or sell. The author does not guarantee the accuracy of the data and NOT responsible to any wrong interpretation by the readers. .