As we all know by now, REITs have outperformed the general index. High yielding REITs were plenty back in 2010, slowly they are becoming overpriced. If you have positions in it, you are probably holding onto them till the last minute to see how much further they can go. I know i am. I decided to highlight some winning REITs who are still offering above average dividend returns.
Of course, this is not an invitation to buy into these selected REITs because most of them are already quite expensive. Did you pick these REITs back in 2010?
I held 4 out of 5 of these top yielding REITs in the past. Recently sold Suntec REIT and First REIT at a very good profit making me happy. While i still hold onto Ascott REIT and Sabanna REIT, i do ask myself how much longer do i have to hold them? The average current yield in each sub-group is already close to 5. Will we see a drop in popularity when this average drops below 4? That is definitely a yes.
For the time being though, let me be greedy and hope for bigger returns. We should be worried when average yield goes below 4%. But i suppose Ascott REIT is something i will have a hard time deciding to sell.
I held 4 out of 5 of these top yielding REITs in the past. Recently sold Suntec REIT and First REIT at a very good profit making me happy. While i still hold onto Ascott REIT and Sabanna REIT, i do ask myself how much longer do i have to hold them? The average current yield in each sub-group is already close to 5. Will we see a drop in popularity when this average drops below 4? That is definitely a yes.
For the time being though, let me be greedy and hope for bigger returns. We should be worried when average yield goes below 4%. But i suppose Ascott REIT is something i will have a hard time deciding to sell.
Hi
ReplyDeleteAny reason why you are still keen on keeping Ascott? Because of its yield still above 6%?
Hi B,
DeleteActually 3 reasons why i want to keep Ascott:
1. Yield still above 6%
2. Steady income stream from service apartment regardless of market/economic cycle
3. They have global presence, yes but recently acquired dozens of properties in China (for growth) and Japan (steady income through master-leases)
Not to sound naive by saying "steady income".
DeleteDuring bad economy, usually Hotel business, industrial and office sectors do worse than Hospitality and Healthcare.