Cutting losses in REITs.

Reader says...
You have been very successful in investing in Reit.

May i ask if you have any cut loss plan for taking up reit position?






I know investing in reit is a long term investment, looking for distribution return.

As investing are about probability and there is no certainty, if the price of reit falling below the entry price, do you get out or continue holding your position?

Really hope to hear from you soon. Thank u Ak.

Your willingness to share help gain alot of knowledge for me.

AK says...
I have in the past sold down some of my investments in REITs.

Examples of such REITs were Lippo Malls and Sabana REIT.

In both instances, I sold because I thought they were no longer as good an investment for income and that the management was mediocre.






If I believe that a REIT is still a relatively good investment for income and that any price weakness is due to (seasonal or cyclical) externalities, unless structural, I won't sell.

You might be interested in the blog on Sabana REIT: HERE.

And the blog on Lippo Malls: HERE.

(I was lucky not to lose any money in both instances and made some money instead.)