Nobody likes to read a list of things to do “Top 5 Singapore REITs to Buy” where the top 5 REITs are:
The huge, blue chip REITs have been extensively covered, and everyone is aware of them.
In fact, the last time I posted an article about the finest REITs to invest in, I received a recommendation to invest in this one “Shift your focus away from ah gong reits all of the time?”
So, if you’re looking for a safe, 4%-yielding blue chip REIT backed by a Temasek company, see our prior post.
Are Singapore REITs a good buy?
If you’re a retiree looking for income or building wealth for retirement, you should think like a Blackstone.
A REIT is, at its core, a valuable asset type. It’s also a fantastic opportunity for average investors to safely develop their money through real estate.
Which Singapore REIT is undervalued?
According to DBS Group Research analysts Rachel Tan and Derek Tan, Suntec REIT is the most undervalued commercial Singapore REIT (S-REIT), with the highest two-year DPU CAGR among its peers.
Is 2021 a good time to buy REITs?
So far in 2021, real estate investment trusts (REITs) have performed admirably. The real estate sector’s almost 30% total return (price plus dividends) until the end of August handily outperformed the S&P 500 Index’s 21%+ return.
Even better, several variables indicate that REITs will continue to outperform other assets in the remaining months of 2021.
The first is a lack of high-yielding crops. Both the 10-year Treasury note and the S&P 500 are currently yielding a pitiful 1.3 percent. REITs, on the other hand, pay out more than double that, with an average yield of 2.7 percent, making real estate equities one of the best-paying sectors in the market.
Is REIT a good investment in 2021?
Three primary causes, in my opinion, are driving investor cash toward REITs.
The S&P 500 yields a pitiful 1.37 percent, which is near to its all-time low. Even corporate bonds have been bid up to the point that they now yield a poor return compared to the risk they pose.
REITs are the last resort for investors looking for a decent yield, and demographics support greater yield-seeking behavior. As people near retirement, they typically begin to desire dividend income, and the same silver tsunami that is expected to raise healthcare demand is also expected to increase dividend demand.
The REIT index’s 2.72 percent yield isn’t as high as it once was, but it’s still far better than the alternatives. A considerably greater dividend yield can be obtained by being choosy about the REITs one purchases, and higher yielding REITs have outperformed in 2021.
Will REITs Recover in 2021?
In 2021, commercial real estate and REITs are expected to begin to recover, with the speed of recovery being determined by the availability and efficacy of a vaccine.
Is Keppel DC REIT overvalued?
Simply put, “book value” refers to the overall worth of a REIT’s tangible assets.
When we split the REIT’s market price by its value, we get a value that we may use to determine if the REIT is overpriced. A REIT that is expensive will have a P/B Ratio of more than 1.5x, but anything less than 1.2x seems appropriate in today’s market.
Keppel DC REIT trades at a price-to-book ratio of 2.22x (P/B ratio) at its current price of $2.53 a unit, which is clearly expensive.
Is Suntec REIT undervalued?
The increase in shareholder value has yet to be factored in. Suntec’s management has pursued an asset recycling strategy to increase shareholder value, which we believe has yet to be priced in. Recent acquisitions in the United Kingdom broaden and stabilize the company’s earnings base, while the sale of certain assets in the 9 Penang Road and Suntec City office stratum crystallizes the NAV.
While excellent earnings recovery leads its rivals, the most discounted commercial SREIT is selling at -0.5 SD. Suntec is currently selling at 0.7x P/NAV, compared to peers’ average of 1x P/NAV, and it is the most undervalued commercial SREIT, with a two-year DPU CAGR of 12 percent.
A desirable target for acquisition or privatization. Suntec could be an appealing purchase / privatisation target at the current undervalued valuation as a result of the probable acquisition of ARA Group, with the new firm focusing on new economy assets.
Risks
Economic recovery that is taking longer than expected and the possibility of a new COVID-19 wave. A longer-than-expected economic recovery and additional waves of COVID-19 could increase the risk of early lease terminations and vacancies in Suntec’s portfolio, which has a higher proportion of SME tenants.
How many REITs are there in Singapore?
The city-state had 44 REITs and property trusts with a combined market capitalization of approximately US$73 billion (S$100 billion) as of May 31, 2019, yielding an average dividend yield of 6.5 percent, which is among the highest in the area.
What is a good yield for REIT?
REITs (real estate investment trusts) are known for paying out high-yield dividends. Currently, the average REIT dividend yield is around 3%, which is significantly higher than the S&P 500’s 1.2 percent yield.
How often do REITs pay dividends?
is a firm that maintains and operates a diverse portfolio of properties. Apartment buildings, office complexes, commercial properties, hospitals, shopping malls, and hotels are examples of these properties, while particular REITs prefer to specialize in one type of property. REITs are popular because they are required to pay out at least 90% of their earnings in dividends to their shareholders, resulting in yields of 10% or more in some cases.
