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Some valuation for you to measure the price of REITs are as follows:
1) Price to Book Ratio
P/B < 1 is consider undervalued
2) Gearing Ratio
Low gearing ratio is good (Pay banks and bondholders a lower amount of interest expenses, which mean there is a higher distribution of earnings back to you as investors)
3) Distribution Per Unit (DPU)
Let's say dividend payouts occured semi-annually (twice a year) and your DPU is 0.1, so your annual DPU is ($0.1 * 2) = $0.2.
Let's assume the share price of ABC REITs is $3.74.
So your dividend yield will be (Annual DPU / Share Price)
(0.2 / 3.74) * 100 = 5.34%
REITs typically have yield around 5 - 9% but is NOT GUARANTEE!
Combined all these and some other valuation with your future outlook of the company, you can make your decision to purchase.
FifthPerson does compile LIVE Daily Updates of Singapore REITs, you can check it out at
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James Yeo
19 Jul 2018
Editor at SmallCapAsia.com
Reits valuation benchmark is always Price to Book ratio. Check out reitdata.com for more info....
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I use historical dividend yield as a benchmark for price of REITs