Readers of this blog would know that my strategy in investing has a preference towards investing in dividend companies and because of this, REITS would be one of the assets that I look at closely as it will continue to form a big part in my portfolio. On the current equity portfolio, 41% of the assets is allocated to REITS, which shows the level of confidence I have in this asset class.
One of the main reason I like about REITS is it is a proxy to investing in real estate asset class with affordability and almost anyone can own them with just a few hundred dollars to start with. in addition, REITS also provide a consistent stream of income base through dividends they pay out to supplement the monthly income that I receive from my current job.
While there has been many REITS events over the past couple of months, REITs Symposium is by far the largest REITS event that is jointly conducted by ShareInvestor and REIT Association of Singapore (REITAS) in 2018. This year, it will be the 4th edition they have conducted where over 70% of the listed REITS will be present. Some of the key management personnel of these companies, such as the Chief Executive Officer and Chief Operating Officer will also be there.
A quick run-down of the programme shows how impressive they are in inviting their guest speakers which boasts the likes of Mr. Lee Yi Shyan (Chairman of OUE Hospitality REIT), Mr. Chan Kum Kong (Head of Research and Products of Singapore Exchange) and Dr. David Kuo (CEO of The Motley Fool Singapore).
The key theme about investing in REITS for this year will be the impact of interest rate hikes. We know that with the rise in the interest rates, the cost of debt for most companies will increase, in particular asset classes such as Reits with a gearing rate that are typically within the 30-45% range. It will be interesting to hear from the management how they will be handling the higher borrowing costs, whether in the form of higher rental escalation or lower borrowings.
I see this like an event such as the AGM where you get to meet the management first hand, hear from the man himself and ask burning questions that you have to the management at their respective booths.
Furthermore, there will be 2 panel discussions which will touch upon topics such as:
- Investment merits of REITS with overseas assets
- Unlocking opportunities in REITS ETF
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Thanks for reading.