Sep 12, 2022

Cory Diary : Exploration of US Property REITs listed in SGX

The 1st US Reit stock tried recently is Prime Reit which has been trending down for some period. Is mainly Office Reit. Decided to plunge 1% amount of Equity Portfolio into it to kickstart my curiosity. The price dropped quit an amount after to my surprise. The learning is .... 1% allocation is still too much. Current yield more than 11%. 

2nd US Reit stock is United Hampshire Reit and likewise did the same with 1%. After a period of study, comfortable with the investment and increased it further. The stock price holds up quite well which I believe is due to mainly their Supermarket property portfolio which likely will do ok in high inflation environment that we are facing today. One thing I like is the selling off of their storage facilities. Current yield more than 9%.

There are a few other more of such US Property Reits that I have yet explore them. Reason why I do this US Property Reit  is that their yield has been driven quite high despite no visible serious flaw in the companies that I can decipher of other than their properties being in US, with my limited knowledge.

There is some kind of work around that allows the companies to pay dividends to investor without withholding tax. That's one of my concern actually which is why I did not explore them till recently when the their stock prices were driven down.

Finally, another issue to watch is USD quite strong. So new purchase we are buying the dollar at a premium despite all their printing. This reduced the sizing further that one willing to put in. Both companies have been listed for more than 2 years so they have paid out dividends many times. So this aren't a bird if you know whom I am referring to. Regardless the risk is something we need to explore. Many people still has bad experience from the flight.

Now, why I want this Reits. First, is some form of foreign diversification. No withholding Tax. USD denominated. Attractive tenants. Few years of dividends payments. This aren't hospitality or tourism related. The only reason I feel the stock price is trending down probably due to the yield compression from higher interest rate and current strong USD. Can they raise their rental price ? Will need to further deep dive into them.

Feeling Lazy ....


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  1. I agree with you. The market is very overly pessimistic on these reits. There are headwinds for sure but for close to 10% yield, I think it’s worth a small allocation. Once US fed pivot in 2023, these reits will gain tailwind

    1. Ya. Kind of an opportunity to give my portfolio a little boost.

  2. Welcome to the team~ Remember to fill up the w8-ben from to avoid the WHT.

    1. I did but not sure there is unexpected issue. We will know when the div amount comes in !