Im looking to diversify my portfolio a little. Is it a good time to invest $5000 equally into each of these S-REITS? I am a buy and hold investor for the next 24 years (retire at 55).
1) Suntec Real Estate Investment Trust
2) SPH REIT
3) Mapletree North Asia Commercial Trust
4) Mapletree Commercial Trust
5) KEPPEL REIT
6) KEPPEL DC REIT
7) FRASERS CENTREPOINT TRUST
8) CapitaLand Mall Trust
9)CapitaLand Commercial Trust
10) Ascendas Real Estate Investment Trust
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Lin Yun Heng
15 May 2020
Senior Analyst at Delphi
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Asking "now" could be an erroneous approach.
stability & regularity help You to play with and not against time.βββ
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Have you done proper research for the above mentioned 10 REITs you are looking to invest? Also judging by your age range, you probably have accumulated some capital for passive income via dividends. In this climate however many reits are cutting their dividends and as such, dividend strategy might not be feasible in the short term at least. Also by buying into 10 different reits yes you are diversified across different type of Reits but you face Real Estate CONCENTRATION RISK. If the pandemic were to cause a long term recession with low demand and low business activity, the property market will take a huge blow. Reits with particularly higher gearing ratios may not be able to survive prolonged periods of uncertainty (eg Suntec Reits.) Also with growing US-China tensions it's really not wise to buy into Reits with overweight China exposure such as MNACT and CRCT (in my opinion) If I were you, with a capital of 50k I would slowly look for undervalued stalwarts or small cap growth stocks to begin with. For stability, blue chips such as DBS/UOB may be feasible too. I feel you should not purely buy Reits just because dividend yield looks good now. FYI, I myself also currently own some Reits you have mentioned and also some in my watchlist. There are solid Reits worth looking into such as A17U, N2IU, C38U, AJBU. Good luck and I hope this helpsππ»
*Not a buy/sell advice, take this with a pinch of salt and do your own due diligence!!! Fundamental analysis is of utmost importance.