Thursday, December 15, 2011

Are Singapore REITs a Good Investment​?

REITs has always been a popular topic of discussion among Singapore investors who want to invest into an instrument that can give them good dividend yields.

Teh Hooi Ling, Senior Correspondent at SPH, had recently done some analysis on the same topic:

The REIT Myth Busted

In the article, she wrote about how most of the REITs had taken back all the dividends they had paid out by doing rights issues.

The actual article that was published in last Saturday’s Business Times comes with a table that gave the breakdown of all the dividends that were paid out by Singapore REITs, as well as the capital that they “clawed” back from unit-holders by doing rights issue.

However, it is not an doom and gloom story for Singapore REITs investors.

While the dividend income had indeed failed for most of them, investors who had invested into more than half of the Singapore REITs from IPO and dutifully deployed capital into them to take up their rights entitlement would still have made money.

And for those who are clueless about rights issue, they would have lost a lot of money.

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