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Sheng Jye Chiam

29 Oct 2023

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REITs

Criterias to select REITS

Hi everyone, as someone who is keen on investing in REITs, may i know what are some criterias when it comes to selecting REITs? Also would investing in REITs beat returns from that of REITs ETFs like Syfe REIT+?

Discussion (12)

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Look at the interest coverage ratio. MAS has criteria that it has to be above 2.5 times. REITs that are at 2.7 times ICR and below are in danger of breaching it as interest rate rises. Leverage ratio, my view is a lot will breach the 45% soon, with exception of capitaland and mapletree

cctzjd

05 Nov 2023

Own time own target at Self Employed

Buy the ETFs for REITS

I would look at the debt load, dividend yield and ability to raise rent mainly. I am not too sure of the return but I would think it is safer since you are investing in more reits with the the etfs.

Hey there! When it comes to selecting REITs, some key criteria to consider include the quality of the underlying assets, the location of the properties, the financial health of the REIT, the track record of the management team, and the potential for rental income and capital appreciation. It's also important to analyze the industry in which the REIT operates and to understand the economic factors that might impact it.

As for whether investing in individual REITs would beat returns from REITs ETFs like Syfe REIT+, it can depend on various factors such as your risk tolerance, investment goals, and the specific performance of the REITs in your portfolio. REITs ETFs provide diversification, which can help spread risk, but they might not offer the same potential returns as investing in carefully selected individual REITs. It's essential to weigh the pros and cons based on your personal financial situation and investment strategy.

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