REIT notes from my reading
Regulatory
Business
Macro
REIT Advantages
Regulatory
- Tax exempt if it distributes 90% of income
- Single-tier leverage limit of 45%
Business
- Reit loans are not amortized, tenure is short.
- Yield accretive acquisition is hard to come by.
- Higher yields than privately held property
Macro
- Invest REIT during uptrend. This is best captured after a down trend to have stronger probability. Cory : What this mean is growing capital gains and dividend distribution.
REIT Advantages
- Quality REIT provides inflation escalation, stability and diversification
- Mix of Yield and Growth
- Easy to understand transparent business
- Available for Tax free and SGX trades
Hi Cory,
ReplyDeleteWhat would be your buy and sell criteria?
Yield/PTB/Debt ratio...etc
Thanks
Hey Ray, sorry. I miss out this comment. One of key importance to me is market uptrend of the stock follow by debt ratio then finally yield.
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