Making Your Millions in REITs , livre ebook

Marshall Cavendish International - Gabriel Yap

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114 pages

English

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This book provides a detailed and updated analysis of S-REITs with latest developments in other REIT jurisdictions and looks into protecting and growing one's investments in REITs after the COVID-19 pandemic. It focuses on how a REIT investor can make millions in REITs in a systematic way. The key lies in not only having Good Performing REITs in your investment portfolio and letting them run, but also in avoiding the Bad Performing REITs or Value Traps that will drain investors' wealth, time and emotions. Gabriel Yap does a deep dive into how certain valuation benchmarks used by the market have proven to be faulty and gives clear guidance on how investors can grow with REITs. As inorganic growth has been an important factor in driving up REIT prices, this book also delves into REITs acquisitions with detailed case studies.

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Economics

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Publié par	Marshall Cavendish International
Date de parution	30 novembre 2020
Nombre de lectures	0
EAN13	9789814974066
Langue	English

Informations légales : prix de location à la page 0,0600€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

2021 Marshall Cavendish International (Asia) Private Limited
Text Gabriel Yap Chong Hin
Published by Marshall Cavendish Business
An imprint of Marshall Cavendish International

All rights reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. Requests for permission should be addressed to the Publisher, Marshall Cavendish International (Asia) Private Limited, 1 New Industrial Road, Singapore 536196.
Tel: (65) 6213 9300. E-mail: genref@sg.marshallcavendish.com
Website: www.marshallcavendish.com
The publisher makes no representation or warranties with respect to the contents of this book, and specifically disclaims any implied warranties or merchantability or fitness for any particular purpose, and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.
Other Marshall Cavendish Offices:
Marshall Cavendish Corporation, 800 Westchester Ave, Suite N-641, Rye Brook, NY 10573, USA
Marshall Cavendish International (Thailand) Co Ltd, 253 Asoke, 16th Floor, Sukhumvit 21 Road,
Klongtoey Nua, Wattana, Bangkok 10110, Thailand Marshall Cavendish (Malaysia) Sdn Bhd,
Times Subang, Lot 46, Subang Hi-Tech Industrial Park, Batu Tiga, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia
Marshall Cavendish is a registered trademark of Times Publishing Limited
National Library Board Singapore Cataloguing-in-Publication Data
Name(s): Yap, Gabriel.
Title: Making your millions in REITs : the savvy investor s guide for crazy times / Gabriel Yap.
Description: Singapore : Marshall Cavendish Business, 2021
Identifier(s): OCN 1200833415 | e-ISBN 978-981-49-7406-6
Subject(s): LCSH: Real estate investment trusts.
Classification: DDC 332.63247--dc23
Printed in Singapore
Teach like there is no better LEAP
Learn like there is no better REAP
Invest like there is no better REIT
Strive like there is no better HIGH
Love like there is no better TOMORROW
DISCLAIMER
The author is not an attorney, accountant or financial advisor. All the information presented in this book is done so for educational purposes only. The information provided in this book is not legal or financial advice and it is not intended to be a substitute for legal or financial advice that should be provided by your own attorney, accountant and/or financial advisor. Although care has been taken in preparing the information provided in this book, GCP Global (wholly-owned subsidiary of GCP Management Holdings Pte Ltd), GCP Management Holdings Pte Ltd and the author cannot be held responsible for any errors or omissions, and GCP Global, GCP Management Holdings Pte Ltd and the author accept no responsibility and liability whatsoever for any loss or damage that a reader may incur. Always seek financial and/or legal counsel relating to your specific circumstances as needed for any and all questions and concerns you may have.
Past performance is no guarantee of future results. All REITs investments involve a risk of loss. There is no assurance that a REITs investment will be profitable. Not all REITs investments are suitable for all investors as each investor is different. If there are any doubts, advice should be sought from an independent financial advisor.
While the publisher and the author have used their best efforts and due diligence in preparing this book, including taking all necessary steps to ascertain that all relevant information is correct and accurate to the best of their knowledge, no warranties are made about the completeness, reliability and accuracy of the information presented in this book. Any implied warranties of merchantability or fitness for a particular purpose are specifically disclaimed. No warranty may be created or extended by sales representatives or written sales materials. The thoughts and strategies contained in this book may not be suitable for any individual reader s situation. A professional should always be consulted as appropriate. Neither the publisher nor the author or any related companies shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential or other damages.
CONTENTS
Foreword
Preface
Chapter 1 WHAT THE PERSPICACIOUS REIT INVESTOR SHOULD LEARN FROM THE COVID-19 CRISIS
How Safe are REIT Dividends?
The Right Sector Picks REITs Selection is Key to Wealth Generation
Mastering the Psychology of Fear
REITs are Not a Good Diversifier in Times of Crisis
Night is Darkest Before Dawn
Conclusion
Chapter 2 HOW YOU CAN MAKE MILLIONS IN REITS
What is a REIT?
Origin of REITs
REITs Take Off in Asia
REITs Take Off in Singapore
REITs vs Property Investment
REITs Total Returns Since the Inception of the REIT Sector
S-REITs Returns in the Previous Decade
S-REITs 10-Year Annualized Total Returns
S-REITs Returns in the Past Decade
Chapter 3 WHY YOU SHOULD HAVE REITS IN YOUR INVESTMENT PORTFOLIO
Dividends
Total Returns
Liquidity
Portfolio Diversification
Inflation Hedge
A Good Diversifier of Wealth
Transparent Corporate Structure
Chapter 4 ANALYSING REITS FOR OUTPERFORMANCE
Operating Profit Loss Metrics
Operating Balance Sheet Metrics
Chapter 5 HOW MUCH TO PAY FOR A REIT?
Yield-based Approach
Price/Book Value (P/BV) or Price/Net Asset Value (P/NAV)
Dividend Discount Model (DDM)
Capitalization Ratio (Cap Rate)
Discounted Cash Flow Analysis (DCF)
Replacement Cost Method
Comparable Sales Method
Chapter 6 THE RISKS OF INVESTING IN REITS
Refinancing Risk
Interest Rate Risk
Excessive Reliance on Capital Markets
Income Risk
Concentration Risk
Liquidity Risk
Chapter 7 HOW REITS GROW AND HOW INVESTORS GROW WITH REITS
Organic Growth
Inorganic Growth
Chapter 8 HOW TO ANALYSE REIT ACQUISITIONS
REIT Acquisitions in 2019
Case Study of Good REIT Acquisitions - Keppel DC REIT
Looking Forward - REIT Acquisitions
Chapter 9 HOW I MADE MY MILLIONS IN REITS
The Market Offers Value, but You Need to Know when to Seize it
A REIT is as Good as the Kind of Property it Owns
Value of a REIT = Value of its Underlying Assets +/- Value of Sponsor
Valuing Management Competence - Qualitative Exercise and Art to be Done Consistently
Good Acquisitions by REITs - Lynchpin in Price Outperformance
When to Sell Your REIT
Chapter 10 POTENTIAL OF REITS AFTER COVID-19
India
The Philippines
Hong Kong
China
Singapore
REITs in the Coming Decade
Summary
Acknowledgements
About the Author
FOREWORD
REIT Guru would be an apt middle name for Gabriel. My first encounter with Gabriel occurred after I became the Chief Executive at ESR-REIT. That conversation left an indelible impression on my team and I, as he was one of the few people who asked critical, thought-provoking and pointed questions few people would dare to ask. My conversations with Gabriel since then have been illuminating - I always take away an important insight from his perspective which has been useful in my investor interactions and how my team and I develop our strategic directions for ESR-REIT.
I am always amazed at how he is able to make investing fun and simple for people to learn from him. Breaking down seemingly complex transactions into simple, easy to understand, layman scenarios and, importantly, how to execute and leverage on the opportunities presented. Even though he keeps up a hectic schedule, Gabriel always finds time to connect with people, regularly sending articles he s read that he thinks my team and I will find insightful. He is a dedicated educator at heart.
Over the years, numerous analysts and pundits and other experts have produced a myriad of articles, blog posts, books and podcasts on investing in REITs. But only a select few promise to truly move the needle in practice, and even fewer still advocate the importance of sensible long-term investing.
So here are three things you will learn from Gabriel:
THE INVESTING JOURNEY IS FULL OF TWISTS AND TURNS
The first thing people learn from Gabriel, of course, is why choose REITs. Given many investors are generally eager to generate both value and growth in their portfolios, they direct capital to less-volatile investments such as REITs, which are expected to yield stable income and long-term capital appreciation. But now there s a roadblock in the investing journey: as COVID-19 continues to ravage global markets, how does one evaluate REITs in the middle of a worldwide disruption the likes of which we have never seen? How do you determine a good REIT to invest in?
COVID-19 has rewritten the rules of real estate. Investors have reluctantly accepted the fact that businesses are unlikely to return to normal anytime soon. Concerns, whether shopping, work or leisure will still be the same and the ability of tenants to sustain their operations once the pandemic subsides has weighed heavily on everyone s mind. These questions are likely to prompt investors to be more astute in their investments. Some may direct their capital away from riskier assets, while others are likely to morph into bargain hunters.
That s where Gabriel s REITs investing framework comes in handy. It is nimble enough that people can use it anytime, even in shifting market dynamics and changing risk appetites. The framework emphasises being prepared, and that means being diverse when it comes to investing in REITs.
FUNDAMENTALS ARE IMPORTANT
The pandemic spotlights issues such as business continuity by exposing and accentuating structural weaknesses in fundamentals that companies have long overlooked or neglected. Similarly, companies with healthy indicators such as strong operating balance sheet metrics, diversified portfolio, robust capital structure and a good management team