Saturday, 27 July 2013

Investing in REITS

Investing in REITS

Value investors strive to identify investments trading at valuations below intrinsic value. 

The objective is to identify REITS with potential for significant appreciation relative to risk. 

Because REITS are generally regarded as hedges or defensive investments, they may be overlooked during bull markets.

Most recently, REITS in healthcare and industrial sectors have done well because they have both a real estate and a business component.
  • Prologis, a REIT with worldwide logistics facility interests and a logistics business to go with it, is a good example.

And during weak economic times
, REITS are fairly defensive and often hold up well because of the underlying stability of real estate prices and rent returns.
  • That isn't to say they're immune, as has certainly been seen with mortgage REITS and some leveraged residential REITS recently.

1 comment:

Kong Hui CHONG said...

SUNREIT drops from RM1.6x to RM1.34 in 2 weeks....

Well, REIT is not that defensive.