Oct 6, 2019

Cory Diary : Reits Comparison

Often we have a list of Reits in our radar. The more savvy one may probably just choose one. To mitigate risk, I tend to have them with different proportions. The question will be how do we apportion them. 

Here today I have 4 of them to think about. Namely, Ascendas Reit,  Mapletree Ind Trust, Frasers Com Trust & iReit Global.  As usual my investment decision is agar-agar. They are all quality reits in my opinion.

There are few key notes in my head. Singapore is near recession whereas US market are still relatively strong.  AR has weakening AUD earning - Australia exposure. MINT recently has rather good bargain on US Data Centers in-addition to what they have. Stronger USD helps too. Ascendas has future earning from Grab building and recent Australia acquisition. AR is largest locally. MINT may have impact from HP Inc downsizing concern as this maybe a risk depending on their BTS lease term with the company.

Overall, I would think MINT yield should be lower (correction) due to better quality earning. And I will be ok to pay more than A Reit. This thinking could change with time though.

How about Frasers Com Trust ? There is some concern in the market whether they can maintain their DPU. However their major was resolved with space able to be rented out to google. There is still risks from Microsoft. Overall the risk is reflected in their higher 6% yield compared to AR and MINT.

With recent blogged iReit in the limelight by famous blogger, the market was moved by it due to low trading volume. There are also other bloggers who are not so positive about it. Nevertheless at 7.6% yield there is some market concern. Is pure Germany play and rather concentrated in a tenant. I have 2.5% allocation currently.

Maybe ratio of AR 12%  :  MINT 9% :  FCOT 6% : iReit Global 3%. This will stagger my yields and risks in REITs.

Make sense ? Now wait for some correction to drive towards the percentage. Those that exceed probably I will put a hold instead.


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