What is a good value to measure the price of REITs (as compared to other stocks we can’t use the same benchmark reference)?

I use historical dividend yield as a benchmark for price of REITs

Some valuation for you to measure the price of REITs are as follows:

1) Price to Book Ratio

P/B < 1 is consider undervalued

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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)

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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.

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So your dividend yield will be (Annual DPU / Share Price)

(0.2 / 3.74) * 100 = 5.34%

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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.

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FifthPerson does compile LIVE Daily Updates of Singapore REITs, you can check it out at

https://sreit.fifthperson.com/