In 2Q 2018, there was a bit of action in the S-REITs space for me and one of the things I did was to add to my investment in Starhill Global REIT at 64c a piece.
In 3Q 2018, I was ready to add to my investment in Starhill Global REIT if Mr. Market’s pessimism should worsen.
However, Mr. Market felt better about the REIT’s prospects and the unit price rebounded.
To understand why I bought more of Starhill Global REIT when I did and how it became one of my larger smaller investments, go to the related post at the end of this blog.
The top 3 income contributors from my investments in S-REITs in 3Q 2018 were:
1. AIMS AMP Capital Industrial REIT 2. First REIT 3. IREIT Global
I often get asked whether we should continue investing in S-REITs since interest rates are on the rise.
I am aware that this is really another way of asking what is going to happen to the unit prices of S-REITs in future.
I don’t know how the prices will move in future.
I only know that investing in bona fide income producing assets has been rewarding and it should continue to be rewarding.
If we believe that real estate has intrinsic value, then, buying at a discount to valuation, we should have some margin of safety.
Also, we have to ask whether the management is honest and capable enough to unlock value for shareholders too.
Of course, S-REITs are not perfect nor are they the only tool available to investors for income.
We also want to be careful not to be overly reliant on S-REITs as the higher yield comes at a price.
Remember,
