Homepage
PR Newswire
29-07-2011, 09:04 PM
(29-07-2011, 12:48 PM)Nick Wrote:(29-07-2011, 07:03 AM)Temperament Wrote: A-REIT starting or started to invest oversea especially in China. MIT properties are now all in Singapore. When come to REITS , so far local properties are safer and may gives better return in the long run. i prefer local property REITS. Yesterday, closing price shot up to $1.20 after confirmation of rights issue. Time to take small profit or to hold & subscribe for rights issue
Vested in BOTH.
China investment represents a very small 3-4% of the total assets. Ultimately, no REIT listed ever faced an operating crisis - poor occupancy, acts of terrorism/war, lack of utilities etc. The closest would be Saizen REIT during the nuclear crisis. But we had a number of REITs who faced existential risk during the credit crunch when bankers were unwilling to roll over the loans of highly geared reits. The industrial reit sector was especially hard hit...Just take a look at the number of S-REITs compelled to turn to rights issue in late 2008/early 2009. In short, gearing is perhaps the most risky aspect of a REIT.
Agree gearing is the most risky aspect of REIT.
(So it is for most companies).
I think that's why we have different "gearing's limits set automatically by the market" , depending who are the sponsors of the REITS.
It's true in late 2008/2009, a number of S-REITS compelled to turn to rights issue but those who dared to subscribe to some of the more bluish ones are making money now.
Or some not so bluish ones, at least you may be still be ahead, if you add up all the DPU for the passed years.
I always feel suspicious right or not, why some REITS's gearings are so low.
It remind me of not all low P/E companies are a buy.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
