How to Decide on which REITS to invest in?


1.Highest yield – 5- 6% – to beat inflation rate

2. DPU consistency

3. NAVPS < Bid Price – to see if undervalued

4. AFFO – the ‘real’ Cash Flow

5. Leverage < 30%

6. D/E < 60%

7. Interest Coverage Ratio > 5%

8. Rental Occupancy

9. Rental Reversion – Positive is better

10. Undervalued P/B < 1

11. Diversification – property categories

12. Weighted Average Lease Expiry – improving market, choose shorter lease. Deteriorating market, choose longer period.