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

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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?

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Soh Sing Heng
Soh Sing Heng, Financial Blogger at SG Young Investment
Level 4. Prodigy
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

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