Based on paper, Yes
Other factors include interest rate, type of asset, asset quality, growth prospect, etc

Hi REIT Guru
IF EPF risk free yields is 6.4%
How much REIT min yeilds must be before can consider REIT as investment grade

Pls help me do calculate

Cannot use EPF as 'risk' free yield cause can go up and down.... and no guarantee hence not risk free.

Usually people use 10Y government bond as risk free yield... because the yield is guaranteed if held to maturity.

This post has been edited by gark: Feb 12 2014, 01:56 PM

I intend to invest in reits due to less monitoring??? and rentals are really really good at prime malls.

If i were to start off as investment is reits the way to go? also any recommendation??

starhill - yield highest

igb - quality tenants

pavilion - quality tenants

axis - acq growth

Contrary.. all stock investments require monitoring.. REIT are NOT safer than other equities as those who suffered 20-30% capital loss recently due to REITs can attest to that.

Stock investment needs time to monitor the price changes, reading the Q results, understand interest rates, yields & macro economy changes and basically requires a lot of work.

There is no free lunch.

This post has been edited by gark: Feb 12 2014, 02:31 PM

Recently during CNY I heard one relative was saying and proclaiming that IGB REIT is a massive scam, sold off all the REITs, have 5 figure losses and will never buy any REIT again. The relative is not an old auntie but a college educated in his 30's...

I asked why and the answer is because the price went down, even below IPO price.

I ask what is wrong with that?

The answer I get is that REIT are supposed to be 'safe' investment with 'guaranteed' income for long term and therefore cannot sell below IPO price

Even after I offered explanation, the relative choose to go about her trashing of the REIt.

So I kept quiet and eat my peanuts.


Many people have wrong expectation for the supposed safety of REITs... if you want to invest, make sure you do your homework.

This post has been edited by gark: Feb 12 2014, 02:48 PM

Auntie mar...typical auntie where got logic and reason wan? When they wanna rage...u talk what also no use

This post has been edited by Pink Spider: Feb 12 2014, 02:45 PM

which is why i intend since REITs are all time low. Pavilion, IGB, Starhill, they are all here to stay with quality tenants and quality crowds. So i guess it's still ok, also I have came across rentals in Pavilion, rent payable is quite ridiculous! Perhaps I am still relatively experience and have not consider other factors.

I am only hesitating since gov bonds yields has increased which I believe has somewhat affected prices of REITS recently. For that marginal amount of % yield as compared with risk free gov bond may not worth it after all.

Above is only my views.

If everyone thinks REITs is free autopilot lunch (and get mad about it when reality bites), we will be eating alot of peanuts too

This post has been edited by jaychow: Feb 12 2014, 02:46 PM

If u are an ikan bilis investor, don't bother with what happens with gomen bonds...reason being, WILL YOU go out there and invest in gomen bonds? No, right?

Just ask yourself, are u happy with the dividend yield of the REITs u are interested in. If yes, just buy. REITs are a source of long-term passive income.

Reits is not at all time low.. the all time low is during 2008/2009 where REITs are selling for 60 cents for the dollar...

High rentals does not mean the reit is good, it is all about dividend yield you get and the growth/stability of the yields.

Hence due to govt yields increase, we have a drop in REIT prices. Price and yield is inverted.

This one surprising... not auntie wor... overseas uni grad and still relatively young wor...

To me, ANY women above the age of consent is an auntie

5 figures losses? Her net worth must be...intro to me?

This post has been edited by Pink Spider: Feb 12 2014, 02:52 PM

Alomak....


This post has been edited by gark: Feb 12 2014, 03:02 PM

US Treasurys back to 2.7%...but MREITs solid (Axis and IGB)? Maby due to closing to ex-divvy date?

Thank you so much for your valuable inputs.

REITs may not be attractive at all given low growth (low cap appreciation) however they are relatively stable (sort of passive dividends) so it is solely based on how i intend to invest...

For starters, which would you recommend?

medium returns, acceptable risk..

is starhill reit ok? they are less then Rm1 and currently the highest yield.

Price not matter, yield matters.

Starhill is hotel based reit, while they Malaysian hotels are on long term contract which is good, but the Aussie is based on occupancy, which is a risk to earnings.

MGS10Y yield is currently 4.15%..come down slightly from 4.3% peak FV yields 5.65%-6.15%

Eco City also got their own mall to compete with Midvalley.