(1) The money continues to move into mid cap and large cap REIT. We can see from the bubbles shifted to right and downward for big and mid cap REIT. Parkway Life REIT hit historical high in terms of price, Price/NAV and has the lowest yield.
(2) Small cap REIT are getting more attractive with relatively cheaper valuation and give 7-9% yield. The value pick should be in small cap at the moment. However, beware of the value trap for small cap REIT because not all of them are fundamental sound. The high yield is caused by the drop in current share price instead of the increase of DPU. Check out how to avoid value trap and invest in fundamental strong high yield REIT here.
Disclaimer: The analysis is for Author own use and NOT to be used as Buy / Sell recommendation. Get a proper training on “How to use this Singapore REIT Bubble Charts?” here.
Original Post from http://mystocksinvesting.com
These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.
Two visual bubble charts to pick and avoid:
- Undervalue Singapore REITs with High Distribution Yield** (Value Pick)
- Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)
** Distribution Yield are lagging.
Compared to previous Singapore REIT Bubble Charts here.
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- Singapore REITs is considered a Listed Alternative Investment. Read here why you should include a Non Market Correlated Alternative Investment in your investment portfolio to reduce volatility.
Also see other courses and seminars below.