Earlier in Part 1, to evaluate a REIT, we need to know what the REIT owns. This Part 2 deals with WHERE are REIT’s assets being located. Generally,REITs tend to follow a strategy of either: geographical diversity or focus (a) Geographical diversity is when a REIT owning offices situated all over US, Australia, UK, New [...]

When evaluating a REIT, one critical factor to consider is to find out actually what the REIT owns and where the properties are located In this Part 1, this article looks at WHAT the REIT owns. What the REIT owns falls into two (2) categories namely: (a) the TYPE of property: office,apartment,industrial,regional mall shopping center,hotel [...]

A snapshot of the Malaysian Reits based on Hwang DBS Vicker Research:

Analysts believe that the extended pause in the Malaysian interest rate (at least for 2007) is a strong catalyst to Malaysian REITs. FY07 average gross yield for Malaysian REITs is at 6.8% against 10 years MGS yield of 3.9% providing a difference of 2.9% spread. As reflected in the below table, compared to other risk [...]

There are basically three (3) reasons for those to contemplate in investing in listed REITS stocks which are: 1. Performance REITs are total return investments that typically provide high dividends plus the potential for moderate, long-term capital appreciation. 2. Dividends The dividend payout from REITS is very high. Dividend growth rates for REIT shares have [...]

It is important that when we review a listed REIT’s annual report, we can see constant and consistent proactiveness on some of the following challenges: Ensuring total cost-to-revenue remained stable. This reflects the REIT’s manager ability to effectively manage operating costs. There is a constant need by the REIT’s manager to rationalise operating costs, e.g. [...]

First time investors (or potential investors) in listed REITS may not be familiar with the computation of the total return or yield from the investment.   Below, we illustrate a simplified (but no less accurate) version of the computation:   Let’s assume the following figures: $ per unit (a) Initial Public Offering price 1.00 (b) [...]