How do you decide when is a good time to sell your REITs or continue holding them for dividends? - Seedly
 

Savings

Investments

AMA SG Young Investment

Asked by Charmaine Lim Xiaomei

Asked on 11 Sep 2018

How do you decide when is a good time to sell your REITs or continue holding them for dividends?

1

Answers (2)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Soh Sing Heng
Soh Sing Heng, Financial Blogger at SG Young Investment
Level 5. Genius
Answered on 11 Sep 2018

I look at the REITs fundamentals such as:

  1. Percentage of debt on fixed and variable rate

  2. Gearing ratio

  3. Weighted average debt maturity

  4. Average cost of borrowings

  5. Interest coverage ratio

I will also look at things such as rental reversion to make sure the REIT can still get higher rent when tenants renew their leases. I wrote a post here on REITS Are Falling - Will This Continue? : http://sgyounginvestment.blogspot.com/2018/06/reits-are-falling-will-this-continue.html

0 comments

1
Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered on 09 Dec 2019

The good time to sell is when cash flow from operations is no longer able to cover the most recent dividend payout

0 comments

0