When is a good time to invest in REITs?

I have been monitoring Reits for quite some times (9 mths plus) . For eg, Mapletree related, Ascendas, Parkway life and etc.

But their prices keep going up and I do not know when to go in. I know that the time in the market is more important than timing the market. But it seems that they are all in all-time high😅

Discussion (11)

What are your thoughts?

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Frankie Rappaport

05 Mar 2020

I feel that instead of investing into single REITs it is less risky to

invest into S-REIT ETFs, less hassle, steady performance.

The correct time to enter is: "always".

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Bibiana

07 Dec 2019

Ascendas looks ok. Another one is Capitaland greater china retail.

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Shirly

07 Dec 2019

Manager at Icon Group

Hi,

Currently i invested in a few reits. What i usually do is DCA. So i will not miss out any upside.

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Bjorn Ng

07 Dec 2019

Business Analyst at 10x Capital

Yes, you are right that REITs are at all time high. The main reason is because of the interest rate cuts. With lower interest rates, REITs have lower borrowing cost.

And yes, there is always this question that you pointed out. But the idea is not to focus on the share price. For REITs, may I suggest you to check the historial Price/Book ratio and the dividend yield? The idea is to purchase it when it's close to historial low P/B, and that might not be now but as the business continue to grow and rise, there will come a time where the valuation will make more sense.

Alternatively, you can always go in with a small nibble first - and if/when the price corrects itself to a more suitable valuation, you can average down :)

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