Yield Defense: Identifying Resilient REITs in a Shifting Rate Environment

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Yield is what you want. Pricing Power is what you NEED. đź“Š

As an SGX Academy SREITS Trainer, the most common question I’m getting this month is: “Kenny, the S-REIT index is down nearly 7% YTD—is the dividend dream over?”

My answer: The dream isn’t over, but the strategy must change.

We are currently navigating a shifting rate environment caused by heightened tensions in the Middle East. In this “new normal,” the Interest Coverage Ratio (ICR) is more important than the Dividend Yield. If a REIT can’t pass on costs or manage its debt, that 8% yield is a ticking time bomb.

In my upcoming webinar with Tiger Brokers, I’ll be conducting a “Stress Test” on 5 major REITs to show you:

🟢Which sectors possess the strongest pricing power right now.
🟢How to identify the “Yield Shield” in your own portfolio.
🟢Why industrial and prime commercial assets are reacting differently to the oil shock.

Kenny Loh is a distinguished Wealth Advisory Director (RNF# LKK300389588 Representing Financial Alliance) with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.

Arrange for a non-obligatory one-to-one free consultation here!

You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

If you need any financial advice, please contact kennyloh@fapl.sg

Continue ReadingYield Defense: Identifying Resilient REITs in a Shifting Rate Environment

(Podcast) How can you deal with Inflation personally?

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The reality is inflation may be here longer than we’d like. So instead of just grumbling about it, let’s talk about how we can actually navigate inflation in our daily lives. Today’s episode features two guests: Chris from HoneyMoneySG (https://www.youtube.com/@HoneyMoneySG) and Kenny Loh, a well-known REIT investor. 

Timestamps

  • Intro (0:25)
  • What are your thoughts on inflation? (2:42)
  • How Mortgage and Rental works (3:46)
  • How inflation affects us as individuals (5:48)
    • Ya Kun Kaya Toast (Set A) was $4.80 last year. Now it’s over $5.60/$5.80
  • What have you consciously adjusted in your spending? (8:20)
    • Food prices have increased by 10-20% across the board
    • So are transportation costs (e.g. Grab)
    • How I am less affected from inflation: (11:50)
      • 1. Live a simple lifestyle: make your spending low
      • 2. Multiple sources of income (especially outside of your full-time job)
      • E.g. hedging of inflation (dividends also increase)
  • Does being frugal affect your quality of life? (16:01)
  • How do you manage spending during inflation? (24:33)
    • What other sources of income that you think people can use? (25:33)
  • Any thoughts on investing fixes? (35:24)
    • Remember your financial objectives! (40:19)
  • Closing: One simple thing we can do to manage inflation (47:10)

Disclaimer: The content in The Financial Coconut is solely for education and entertainment purposes. It does not serve as any form of advice or recommendations. For all other links mentioned, or to discover more from the team at The Financial Coconut (including all our other shows), go to https://linktr.ee/thefinancialcoconut

Continue Reading(Podcast) How can you deal with Inflation personally?

OTCS Special Market Outlook 2023 – Inflation, US Markets and REITs

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Do you know where are the risk and opportunities in 2023?

2022 saw rising inflation & S&P500 in down trend

Fed is planning to whatever it takes to tame inflation. Is it good for your portfolio?

Will the markets crash in 2023, or climb higher?

Shortly into 2023, we saw S&P500 recovering. Will it continue?

 

Timestamps

1:44:30 Intro

1:48:37 Market Recap: Singapore REIT Index performance; comparison with STI and Financial Index

  • 1:58:02 US Fed Hike Rate

2:00:42 Things to look out for in 2023

  • Keeping an eye on Net Asset Value/Unit and DPU growth trends

 

2:04:15 Why you need to look at financial ratios of a REIT and not just yields:

  • EC World REIT Case Study: Debt Management
  • Unsecured Borrowings

2:08:35 Capitaland Ascott Trust Case Study

2:10:23 Manulife US REIT Case Study: Risk of breaching 50% gearing ratio limit

  • How MUST could try to reduce its gearing ratio
  • Portfolio valuation dror

2:15:03 My radio interview on the S-REIT Market Outlook for 2023 (or view here)

2:17:32 REIT Investing Strategy for 2023

  • REITs are cyclical, despite poor performance during 2022

2:19:39 Summary

2:22:12 How your Investment Portfolio should look like

 

 

 

 

OTCS invited 3 expert practitioners to share with us their market outlook for 2023; where are the risks and the opportunities in the Singapore and US markets.

  1. James Yeo
    – US Markets
    .
  2. Ian Low
    – Bonds, REITs, STI
    .
  3. Kenny Loh
    – REITs

Bring your most pressing questions about Stocks, REITs, Bonds, SG and US Markets as we will have a Q&A segment for you to get your answers. 

 

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingOTCS Special Market Outlook 2023 – Inflation, US Markets and REITs