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Singapore REITs - The Complete Guide

Singapore REITs are listed companies that you can invest in, similar to how you would buy shares in other companies. But unlike other listed companies, REITs use investors’ money to buy, operate and manage properties rather than run businesses.<br><br>There are currently 35 REITs in Singapore. They can be subdivided into these property sectors: office, retail, industrial, hospitality and healthcare.

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Singapore REITs - The Complete Guide

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  1. SINGAPORE REITs TheCompleteGuide 2018 MMFSolutions www.mmfsolutions.sg

  2. WHAT ARE REITS? www.mmfsolutions.sg

  3. REITs SINGAPORE REITs SingaporeREITsarelistedcompaniesthatyoucaninvestin, similartohowyouwouldbuysharesinothercompanies. But unlikeotherlistedcompanies, REITsuseinvestors’ moneyto buy, operateandmanagepropertiesratherthanrun businesses. Therearecurrently35REITsinSingapore. Theycanbe subdividedintothesepropertysectors: office, retail, industrial, hospitalityandhealthcare. www.mmfsolutions.sg

  4. SINGAPORE REITs What kind of returns can you get from REITs? IfyouinvestinaREIT, youcanexpectittoyieldbetween5% and7% ayearindividends (paidoutquarterlyorevery6 months). Howisitpossibleforyieldstoconsistentlybesohighthough? It’sbecauseREITsarerequiredbylawtoredistributeatleast 90% oftheirtaxableincomeeachyeari.e. payitoutin dividends. www.mmfsolutions.sg

  5. HOW DO YOU CHOOSE A REIT? www.mmfsolutions.sg

  6. HOW DO YOU CHOOSE A REIT? SINGAPORE REITs Thekeyistodiscoveronethatisverymuchoverseenandcan guaranteeasteadystreamofpayments. Don’tsimplyrunforthose withhigherrevealedyields, yetsetasidetheopportunitytoperuse theREIT’splanandcheckwhetheritfitswithyourhazardhunger andtowhatextentyoumeantoremaincontributed. AdecentplacetobegindoingappropriateresearchintoREITsis throughSGXStockFacts. Channel “Industry” to “LandInvestment Trusts (REITs)” andyoucanseesomekeydetailsfromeachrecorded organization. www.mmfsolutions.sg

  7. HOW DO YOU CHOOSE A REIT? SINGAPORE REITs Onesuchpointeristheobligationto-valueproportion (D/E). Inthe eventthattheorganizationhasaconsiderablemeasureof obligationstoreimburse, itwouldbestuckinanunfortunate situationifthere’sadownturn – itmayneedtoexchangeitsbenefits orevenbecomepenniless. Todecreaseyourhazard, selectaREITwithasolidD/Eproportion underneath60%. www.mmfsolutions.sg

  8. HOW DO YOU CHOOSE A REIT? SINGAPORE REITs Likewise, withanykindofcontributing, youremaintoacquireonthe offchancethatyouputresourcesintotheorganizationbeforeeach Tom, Dick, andHarrygoesga-gaoverit. SearchforunderestimatedREITsbycheckingthecostto-book- esteemproportion (P/BV), whichdemonstratestheendcostofa stockisolatedbyitsquarterlybookesteem. AP/BVproportionof under1couldshowthepotentialfordevelopment, inspiteofthe factthatyou’dhavetodotheexplorationtoaffirmthisiswithouta doubtthecase. www.mmfsolutions.sg

  9. WHAT TYPES OF REITS TO AVOID? www.mmfsolutions.sg

  10. WHAT TYPES OF REITS TO AVOID? SINGAPORE REITs Highly-leveragedREITs Excessiveprivateplacements Decliningdistributionperunit Highvaluation www.mmfsolutions.sg

  11. HIGHLY-LEVERAGED REITS SINGAPORE REITs REITsinSingaporehaveagearingratiolimitof45%, as mandatedbytheMonetaryAuthorityofSingapore. The gearingratioiscalculatedbytakingaREIT’stotalborrowings anddividingitbyitstotalassets. www.mmfsolutions.sg

  12. EXCESSIVE PRIVATE PLACEMENTS SINGAPORE REITs PrivateplacementshappenwhenaREITsellsitsunitstoa specificgroupofinvestors. Unlikearightsissuewhereretail investorssuchasyouandmecanparticipate, private placementsarereservedforaselectgroupofinvestorssuchas institutionalinvestorsorwealthyindividuals. www.mmfsolutions.sg

  13. DECLINING DISTRIBUTION PER UNIT SINGAPORE REITs InvestorsinREITsshouldlookoutforconsistentgrowthinthe distributionperunit (DPU). AnincreasingDPUineveryyear signalstothemarketthattheREIT’sassetsarestableandcan attractqualitytenants. Ontheotherhand, afallingDPUshows thataREITisstrugglingtoincreaserentsanditsprospectsare likelynotthatgreat. www.mmfsolutions.sg

  14. HIGH VALUATION SINGAPORE REITs ThePBratioiscalculatedbytakingthemarketpriceofaREIT anddividingitbytheREIT’slatestnetassetvalue (alsoknownas bookvalue) perunit. Anyratioabove1showsthattheREITis tradingatapremiumtoitsnetassetvalue, whichisassetsminus liabilities. www.mmfsolutions.sg

  15. SINGAPORE REITs THANKS FOR YOUR TIME! MMFSolutions www.mmfsolutions.sg

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