31 July 2018

How to Decide on which REITS to invest in?


1.Highest yield - 5- 6% - to beat inflation rate

2. DPU consistency

3. NAVPS < Bid Price - to see if undervalued

4. AFFO - the 'real' Cash Flow

5. Leverage < 30%

6. D/E < 60%

7. Interest Coverage Ratio > 5%

8. Rental Occupancy


9. Rental Reversion - Positive is better

10. Undervalued P/B < 1

11. Diversification - property categories


12. Weighted Average Lease Expiry - improving market, choose shorter lease. Deteriorating market, choose longer period.



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