Case Studies for SREITs with Income Support
Income support for SREITs is well known way to boost its DPU and is getting more and more common. I have recently shared SREITs that have income supports in SREITs Basic Fundamental Review - 2020 1Q post. For this post, I would only focus on those which have more than 5% income support in their distribution. I would try to estimate the distribution downfall when income support lapse.Investors should be cautious when investing in REITs with income supporti) BHG Retail REITBHG Retail REIT income supportDespite their acquisition of Hefei Changjiangxilu Mall, distribution show no improvement, where FY2019 DPU is 3.87 cents. Let assume the following for calculation:i) Distribution amount of S$ 16.754 mils remain consistent from 2020 to 2021.ii) Outstanding increased by 0.9% per year.