Higher dividend yield = better REITs?? 

It is important to increase the awareness of new investors that investing in S-REIT with higher dividend yield may come with higher risk!! For this post, I'll use 2 examples of S-REITs with high dividend yield. 

$EC WORLD REIT(BWCU.SI)$ share price dropped by 32% within a year. As of 30 Jun 2022, the Group have borrowings of S$689.348 million due for repayment within next 12 months!!! For reference, the net property income is only S$28.2 mil.

In Q3 22 alone, EC World REIT entered into expropriation (action of dispossessing someone of property) and compensation agreement with PRC authorities in relation to the compulsory expropriation of Fu Zhuo Industrial. Furthermore, it also entered into pre-termination compensation agreement with 3rd party tenants due to its compulsory expropriation.

$DASIN RETAIL TRUST(CEDU.SI)$ share price dropped by 45% within a year. As of 30 June 2022, the Group have borrowings of S$751.02 million due for repayment within next 12 months!!! For reference, the recent 1H22 net property income is only S$38mil.

On 12 Oct 21, it has entered into Sale and Purchase (S&P) Agreement with affiliate of Sino-Ocean Capital, which acquired 70% of total issued and paid up share capital in the Trustee-Manager. Although it was granted a 6-month extension for its onshore and offshore loan up of S$644.2 mil.

If the companies are unable to refinance their debt, it will be suspended from trading on SGX. **Hence, it is important to check the financial statements of the companies that you are planning to invest in!!! As both of these companies are facing huge debt problems now, it's no surprise that their share prices are near 52-weeks low. But if they successfully clear their upcoming debts, we should see a rebound soon! 

For me, I'll prefer to buy S-Reit with strong sponsor and proven track record such as $MAPLETREE INDUSTRIAL TRUST(ME8U.SI)$$ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$$MAPLETREE LOGISTICS TRUST(M44U.SI)$

Although their annual dividend yield is around 5+%, their share prices have been increasing over the years!! We should look at both capital appreciation and dividend yield to determine total returns per year!! Furthermore, these companies are backed by Temasek Holdings aka Singapore Government and I'm willing to invest and hold long-term!

Do you prefer higher dividend S-Reits or stable S-Reits with moderate dividend and higher capital appreciation? Do let me know your thoughts! 

@Daily_Discussion@CaptainTiger@TigerStars@MillionaireTiger  

# SGX Stocks Opportunities

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • eldert
    ·2022-08-17
    stable reit produce stable income, lastly sleep better
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    • Omega88
      agree with u [Like]
      2022-08-17
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  • Jadenkho
    ·2022-08-17
    Thanks for sharing🥂
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    • Omega88
      [Like]
      2022-08-17
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  • Oldhead
    ·2022-08-20
    There's no free lunch but sometimes maybe cheap lunch.
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  • MC8989
    ·2022-08-17
    Great article for dividend earning.
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  • gsazer
    ·2022-08-20
    [Grin] [Grin] [Sly] [Sly]
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  • CcyInvestor
    ·2022-08-22
    👍🏻
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  • Ranchy
    ·2022-08-21
    hmm okay...
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  • WL_Infinity
    ·2022-08-21
    [Like]
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  • Desmond669
    ·2022-08-20
    Good
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  • KenMKH
    ·2022-08-20
    [Strong]
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  • Csboi
    ·2022-08-20
    Good
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  • ac1887
    ·2022-08-19
    Good
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  • schatzy
    ·2022-08-19
    [Thinking]
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  • MMZX
    ·2022-08-18
    👍🏻
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  • misscherry
    ·2022-08-18
    ok
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  • olilim
    ·2022-08-18
    ok
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  • Ni76
    ·2022-08-17
    👍
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  • JoelSeah
    ·2022-08-17
    Noted
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    • Omega88
      [Like]
      2022-08-17
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  • TonyYew
    ·2022-08-17
    [Like]
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    • Omega88
      [Like]
      2022-08-17
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  • 企鹅大人
    ·2022-08-17
    good read
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    • Omega88
      thanks!
      2022-08-17
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