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Analysis of REITS owned by TKL
15 Jan 2021 (109 views)

I owned the REITS shown below.

All of them have a dividend yield of about 5%, which is attractive. 

However, I expect the dividend to be cut by at least 20% in 2021, due to the impact of the circuit breaker. Many tenants of the retail malls are not able to pay their rent or have closed their operations.

It is likely that the prices of the REITS will also fall in line with the cut in dividend. 

Some of the REITS have a price to book of over 1.0. This means that the price for each unit is higher than the asset value. I will be selling these REITS first. However, the price decline may affect the other REITS as well, i.e. those with price/book lower than 1.0.

Most of the REITS have a price earning ratio of more than 20 times. This implies a earnings yield lower than 5%. The current yield is not sustainable, even if the revenue is not reduced. 



 


Analysis of REITS owned by TKL
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I owned the REITS shown below.

All of them have a dividend yield of about 5%, which is attractive. 

However, I expect the dividend to be cut by at least 20% in 2021, due to the impact of the circuit breaker. Many tenants of the retail malls are not able to pay their rent or have closed their operations.

It is likely that the prices of the REITS will also fall in line with the cut in dividend. 

Some of the REITS have a price to book of over 1.0. This means that the price for each unit is higher than the asset value. I will be selling these REITS first. However, the price decline may affect the other REITS as well, i.e. those with price/book lower than 1.0.

Most of the REITS have a price earning ratio of more than 20 times. This implies a earnings yield lower than 5%. The current yield is not sustainable, even if the revenue is not reduced.