Towards Financial Freedom
S-REITs - The allure of S-REITs
We pointed out that S-REITs has one of the highest yield spreads globally in our previous report. We think the Asian REITs outperformed the non-Asian REITs in terms of yield spreads partly due to higher borrowing costs in the West (consequence of US/European deleveraging) and Australia. S-REITs further edged out other Asian REITs because of its relatively higher capitalization rates. This enables S-REITs to offer DPU yields of ~6% without trading at discount to book .On the other hand, in order to offer DPU yields of ~5%, HK-REITs and J-REITs have to trade at ~0.8x PBR. Our top BUYS remain with the more defensible industrial and retail REITs with total returns of 10%-19%. We think their risk-reward proposition still appear favorable to yield-driven investors. Maintain OVERWEIGHT on the overall S-REITs sector.
Source: Maybank Kim Eng
Source: Maybank Kim Eng
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
