AS SURE AS DAYLIGHT, SREITS SHINE

04/2017-

SREITs were hammered severely following the victory of Donald Trump in the US Presidential elections on 9 Nov 2016. Compared to recent highs reach in Aug/Sep 2016, SREITs were down an average of 4.1%, the 3rd sharpest correction in the last 4 years since the 23rd May 2013 Tapering Fears, triggered by then Federal Reserve Chairman, Ben Bernanke.

As in our last article, https://einvesthub/btonline/com.sg/sreits-get-pounded-by-trump for Dec 2016 issue and in our last REIT Investment class entitled “Tactical Profitable Positioning in REITS”, we have suggested that for the opportunity-seeking value investors, black swan events like this are probably the best time to top up on REITs when they are selling at maximum fear. This could turn out to be the classic “Buy when there is blood on the Streets”.

Henceforth, 4 months have passed and SREITS have started to shine again. Despite initial jitters, SREITS have gotten past the fears from the recent Mar 15 rate hike by the Federal Reserve.

Investors who have heeded our observations and learn in our REIT investment class the skills to pick the best performing REITS would have enjoyed returns of 9 - 14% from their recent lows, not including the dividends paid for 1Q2017. Mapletree Industrial Trust posted the sharpest recovery at 14% return while Ascendas Reit ascended 12.3% as the 2nd Best.

It was pointed out that the retail sector suffered the most serious bout of sell-off in November 2016 - Major retail REITS like Mapletree Commercial Trust, Fortune Reit and Capital Mall Trust suffered losses of 9.43%, 9.04% and 6.68% respectively, one of the sharpest falls in their share prices in the past 4 years over a 2-week period.

Again, participants in our investment class were shown that e-commerce fears and online shopping still pose minimal damages to retail REITS bottom-line when REITS reported that latest quarterly results. We show clearly that certain myths still continue to underpin the REIT market, but the smart investor can always capitalize on that.

Thus, if they had piled in, they would have pick some of the best performing REITS in the current rebound from the November –Trump effect lows.

SREITs continued to face an uncomfortable mix of low growth, heightened currency volatility, coupled with rising risk to distributions from an anticipated rise in interest rates in the next coming quarterly results from mid-April till end-May.

How does one navigate and gain first-hand analysis resulting in good gains in your REIT portfolio? Do sign up for our next REIT class, timely arranged for Saturday 6th May 10 am to 1 pm - https://www.eventbrite.com/e/which-are-the-good-valued-reits-to-have-in-your-portfolio-updateprospects-tickets-32678233476

Participants who attended our last REIT class had been invited to a personal Meet the CEO session of 1 of the best REITS on Fri 7th April. They will get to ask all their questions and uncertainties first-hand.

Participants who attend our 6th May class will be invited for an overseas trip to see a REIT assets first-hand during the June holidays and also get to ask all their questions and have all their uncertainties addressed.

So do sign-up quick as places are limited at the Event Hall of Maybank Kim Eng Securities, the venue.