There have been a handful of bad news about REITs recently. Let's run through some of them to rationalize which REITs are in trouble and which are not.
Thanks Alvin, your video helped. I decided to sell all my troubled USD REITS at 80-80% loss and move on. I think REITS is not for everyone, especially not for people who just want to have a piece of mind and collect distributions. REITS, being a commercial entities, are subjected to market conditions that oftentimes beyond us. Good REITS can also become bad REITS in the future. At the beginning, KeppelOak, Prime and Manulife are all good REITS and look what happened.
Interest costs are going up so DPU might fall further. But as long as occupancy is high and income hasn't dropped substantially, the REIT will survive. Interest rates are peaking now so REIT prices are close to the bottom now. Good time to buy into the good quality local mega REITs.
REITs raise money during bearish period not because of share prices, but it's because during these bearish periods with big sentiments when they need money.
Want to invest in reits for passive income? Capitaland and Mapletree families of reits are the sure bet especially now some of their share price are at near historical or 52 weeks low. At least you can sleep well at night and collect dividends to weather this period.
I think you did not include the 2 perpetual securities by lendlease to raise funds. If you include them, lendlease gearing is close to 50% and adjusted interest coverage ratio is at 2x which is dangerous value. That is the reason why analysts are sounding the alarm
@@DrWealthVideos Some more the 2nd prepetual sec is at 5.25%, so that brings the qns why is it so? And yes with lendlease facing the pressure to perpetual payout and rising interest rates cost, and yet they are still actively purchasing more asset in the depressed environment, it is going to add a lot of stresses on this lendlease portfoilo.
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Thanks Alvin, your video helped. I decided to sell all my troubled USD REITS at 80-80% loss and move on. I think REITS is not for everyone, especially not for people who just want to have a piece of mind and collect distributions. REITS, being a commercial entities, are subjected to market conditions that oftentimes beyond us. Good REITS can also become bad REITS in the future. At the beginning, KeppelOak, Prime and Manulife are all good REITS and look what happened.
Interest costs are going up so DPU might fall further. But as long as occupancy is high and income hasn't dropped substantially, the REIT will survive. Interest rates are peaking now so REIT prices are close to the bottom now. Good time to buy into the good quality local mega REITs.
great sharing!😊
Which one will you hold if you happened to have one?
REITs raise money during bearish period not because of share prices, but it's because during these bearish periods with big sentiments when they need money.
will impact more for properties because rental yld too high
Want to invest in reits for passive income? Capitaland and Mapletree families of reits are the sure bet especially now some of their share price are at near historical or 52 weeks low. At least you can sleep well at night and collect dividends to weather this period.
Thanks for sharing. Will lendlease become penny stock? Exit with 25% loss🤔😥
I think you did not include the 2 perpetual securities by lendlease to raise funds. If you include them, lendlease gearing is close to 50% and adjusted interest coverage ratio is at 2x which is dangerous value. That is the reason why analysts are sounding the alarm
Thanks! Didn’t know about the perps. Yes the interest payments will be substantial in this case.
@@DrWealthVideos Some more the 2nd prepetual sec is at 5.25%, so that brings the qns why is it so? And yes with lendlease facing the pressure to perpetual payout and rising interest rates cost, and yet they are still actively purchasing more asset in the depressed environment, it is going to add a lot of stresses on this lendlease portfoilo.
Edited version.. actually nvm .. Is much natural the previous upload
Since High interest rate environment will impact all REITs, even stronger SG REITs may not hold up if this persists for another 1-2 years. 😢
Agree.
Fed will kill all carry trades including reits.
i hope reits and dividends will crash all the way and make everyone who invest in these dangerous assets learn a painful lesson