Refer to my previous post on REITs Investment Performance as at 31-May-2010, my REITs portfolio has grown another 0.8% in annualized return, from 21.1% to 21.9%, within 2 months. This impressive return are main contributed by outstanding yield from HEKTAR and AXREIT which are generating 32.7% and 44.1% annual compounding rate.
Accept the fact that other good counters in Bursa were actually performing much better than REITs. For example, my MAYBANK's holding was giving me a annual return of 67.3% as of 31-July-2010 for a holding period of a year and four months.
No matter you are buying REITs or other counters, there is, of course, another important factor that contributes terrific gain. That is buy them when they are really cheap. Majority of my current holdings were bought in early 2009 when market was so pessimistic.
As of my opinion, REITs is a good vehicle to generate stable and impressive income with relatively stable pricing. I might treat it as one of my income source during retirement. If you have extra fund (after consideration of emergency buffer requirement) and have no idea where to invest, instead of putting it in low risk low return FD, do consider REITs. Of course, some homework before any investment need to be done beforehand.
Good luck.
Hi SC,
ReplyDeleteThis is indeed a handsome return. Would you beable to advice us what is the best REIT to enter now ? I m thinking whether should i park my money in the new launch REIT (SUNREIT and CMMT)
Well, you may refer to my previous post on critical success factors on selecting REITs.
ReplyDeletePersonally, I do not recommend any counter as investment is absolutely on personal preference. What good for me might not right for you. Think carefully what you need and search for the right counter before any investment.
Good luck.
Hi Mr. Lai, I am holding quite a number of REITs since years ago and the unrealized gain is quite impressive I would say (apart from yearly dividend received), but as current mkt is flying sky high, would you consider to realize them out as some say mkt could collapse at anytime, thanks for your advice.
ReplyDeleteI am not considering to realize my profit now until stronger selling signal arise.
ReplyDelete