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In the last one month, I bought more units in industrial properties S-REITs.
1. I became an investor in Cambridge Industrial Trust again. Read blog post here.
2. I bought more units of AIMS AMP Capital Industrial REIT. See latest blog post here.
3. I became an investor in Cache Logistics Trust. Read blog post here.
4. I became an investor in Sabana REIT too. Read blog post here.
DTZ Research said that rents for industrial space in Singapore are rising. Although average rent grew 3% quarter on quarter, current average rent is still 17.1% below the peak of 2008.
"DTZ added that industrial rents are anticipated to continue to increase. That is because the annual average potential supply of 7.5 million square feet between 2011 and 2013 is significantly lower than the historical 10-year average demand of 9.3 million square feet." CNA, 07 April 2011.
If we are trying to beat inflation and protect our wealth from shrinking, industrial properties S-REITs are definitely worth considering. I have felt this way for more than a year and I continue to believe in their fundamentals.
Bloggy Award
8 comments:
dun u think gearing of over 30% is consider high?
Hi WK,
I don't think so. As long as the cost of debt is low and the credit environment is benign, 30 to 35% gearing for REITs is manageable.
If it bothers you sufficiently, then, you might want to look at Cache Logistics Trust and Sabana REIT, both of which have gearing at less than 30%.
It might interest you to know the gearing levels for Mapletree Industrial REIT and Mapletree Logistics Trust are both closer to 40% than 35%. I am not vested in these. ;)
The ability of re-financing is the key to survival during financial crisis. Ah Gong has deep pocket.
Hi CW,
Yes, REITs with blue chip sponsors have that advantage. :)
AK,
do take note that industrial reits and properties generally have higher yields because of a much shorter leasehold, as compared to commercial or residential.
The higher yield is to compensate for this shorter leasehold.
Hi JW,
Yes, I am aware of this and have made the same point in various other blog posts and in replies to readers' comments. :)
Hi,AK71,
It seems that you did not mention Ascendas India Trust which is also an industrial REIT? Can you share your view on this counter please? I am a newbie and i have learned alot from your blog. Thank you very much for your kindness and generosity!
Hi sanmuzi,
I did not mention Ascendas India Trust because I don't know anything about it. ;)
Also, this blog post is more on industrial properties in Singapore.
I am glad you have found my blog helpful and I look forward to hearing from you again. :)
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