atans1

Where Reits can go wrong

In Property, Reits on 14/11/2013 at 5:20 am

Reits are back in fashion after the Fed delayed tapering. QE is still coming.

So bear in mind the following comments by Fitching Ratings (ST 10 October 2013):

Yet key risks remain, including high-leveraged Reits that borrowed more to take advantage of low interest rates.

Reits could also face refinancing issues if loans are not renewed or when asset values fall below what had been anticipated.

Rising supply could also hit industrial Reits, with more multi-user factory space coming onstream over the next two years.

This could depress rents and lower asset valuations, which would worsen the sector’s financial metrics, warned Fitch Ratings.

“This is particularly salient for the hospitality industry which is the most cyclical and leveraged of the Reits under Fitch’s coverage,” the agency stated.

http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=412728214-19457-4491932987

I’m still long Reits, have no intention of selling yet, but am not a buyer. https://atans1.wordpress.com/2013/07/08/why-im-not-selling-my-reits-yet/. Look at dividend stocks. KS people shld look at Temasek Fab 5  and compare their dividends with waz available from CPF or govt bonds or S$ fixed deposits.

Advertisements
  1. Long time no hear. How are things? Seen a number of yr articles on TRE.
    Good piece on Reits. Luckily I shun them.
    BTW my old yahoo was hacked. Locked and couldn’t recover it. Lost yr email address.See my new email below.
    Best regards

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: