For investors who are nearing retirement or looking to retire soon, one key characteristic they should look for in REITs is income stability. This means the REIT should have a track record of paying out a dependable and predictable distribution per unit (DPU) so as to provide investors with peace of mind and a good night’s sleep. The problem is that not every REIT makes a great investment, and investors need to be discerning when it comes to choosing a REIT they can hold on to for the long term. One factor to consider is the presence of a strong sponsor, as this can lower borrowing costs for the REIT and also provide it with a ready pipeline of properties for acquisition. You should also observe the track record of asset under management (AUM) growth and the stability of DPU over th

Since I bought Frasers Logistics and Industrial Trust (SGX: BUOU) last year at an average price of S$1.05, its units have climbed around 15%. Despite the run-up in price, I still believe it remains an attractive investment. With that in mind, here are three reasons why I intend to hold on to this industrial-focused real estate investment trust (REIT) for now. Favourable leases Frasers Logistics and Industrial Trust, which is backed by property giant Frasers Property Ltd (SGX: TQ5), boasts a solid portfolio of properties with favourable leases. As of 30 June 2019, it had 59 Australian properties and 22 European properties.  The properties in Australia have a weighted average lease expiry of six years and negotiated annual rental increment of 3.1%. 92% of its European properties a

While most investors invest in REITs to obtain a steady stream of dividend income, the fact is that REITs also grow over time, either through organic means (through asset enhancement initiatives or renovations) or through mergers and acquisitions. Acquisitions are a favoured method because it will instantly provide a boost to both asset size (and value) and usually also comes with an increase in distribution per unit (DPU). Investors need to be discerning though – not all acquisitions are beneficial for the REIT. Some assets may be sub-par, and even for quality assets, REITs may also end up over-paying for them, resulting in value destruction for existing unitholders. Investors should carefully size up the facts and figures relating to each acquisition to assess if it boosts the ove

For investors, making yield plays seem to be a highly sensible thing to do. According to DBS, here are 4 yield plays that investors should consider. Investors Takeaway: 4 Yield Plays As Trade War Uncertainties Linger By DBS Frasers Property With the rise of its REITs’ share prices, DBS sees a window of opportunity for Frasers Property (Frasers) to capitalise and grow its REITs AUM. One strategy that DBS thinks Frasers Property can adopt is to recycle its mature assets into its listed REITs. This can help the developer to grow its AUM and re-allocate funds towards higher return investments. Overall, DBS remains highly positive on Frasers Property due to its limited exposure to Singapore residential properties amidst subdued sentiments. Its strong recurring income profile as a landlord i

On 16th May 2019, Frasers Centrepoint Trust made an announcement on acquisition of a 33.33% interest in Waterway Point and equity fund rising (private placement and preferential offering) of no less than approximately S$421.7 million to be used in the acquisition.  The private placement price was S$2.382/unit and preferential offering which retail investors get to involve was S$2.35/unit.Like what was mentioned in Journey To Retirement Part 16 -- Frasers Centrepoint Trust, one of the potential upside for the stock is acquisition of Waterway Point and three years after that the objective has been met.When I first invested in 2016 at a price of $1.80 (the lowest price level since 2016, which months later strategically became $1.6314), the reason for me willing to invest rather than wait