atans1

Why I’m not selling my Reits yet

In Financial competency, Property, Reits on 08/07/2013 at 5:14 am

I’ve been long Reits since 2008.

Despite the recent turbulence, I’m still not a seller because the global economy (and S’pore’s) faces four potential outcomes: a return to healthy growth (in which case Reit incomes should rise); a low-growth, low-inflation period in the doldrums (in which case the income appeal of Reits should help); a return of rapid inflation (as a real asset, property should offer some protection and Reits offer property and leverage); or a deflationary slump. Only in the last case would property suffer. Three-out-of-four sounds good odd for any racing man. And the last in S’pore is impossible to imagine. Easier to imagine a S’pore where the PAP doesn’t form the govt.

As to whether I’m a buyer https://atans1.wordpress.com/2013/05/21/s-reits-why-stay-away/. Look at dividend yielding stocks.

BTW, since https://atans1.wordpress.com/2013/05/28/bad-timing-st-article-on-reits/, I’ve been told the Reits index is down about 14%.

BTW2: Still looking at Comfort Delgro. https://atans1.wordpress.com/2013/06/17/when-raising-fares-sbs-smrt-govt-dont-have-this-problem/ explains why it looks interesting.

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