REIT Annual Report – How to Invest in 10 minutes

by ChingFoo Lieu on 04/04/2012

There are a few critical criterion to check on before investing your money in REIT.  They are listed below. However, how do you actually know if a REIT fulfils these criterion? No easy way to know except by looking at its annual or quarterly report. Now, don’t cringe yet, because you can actually do this in 10 minutes – I’ll show you how by using Capital Malls Malaysia Trust, a pure-play retail REIT, as example in the video below.

You asked, “Why REIT and not real property?”. Firstly, REITs are just like stocks – they are liquid yet track real properties trend in its portfolio, with minimal work required for the dividends. Secondly, there’s large capital upfront and definitely a lot more work in managing tenants in real property investment . It’s unwise to lock your capital if you need to use it for the next 3 to 5 years.

Personally, I am enhancing my knowledge in real properties investment before jumping into this.  Having said that, I highly recommend KC Lau’s online Property Method course, (I don’t get paid for saying this) which I am currently enrolled in and InvestKK blog for really excellent resources on this topic.

Anyway, the criterion are:

  1. Dividend growth Y.O.Y (year over year)
  2. Growing its net asset value and enhancing existing asset
  3. Assets at strategic location
  4. Debt profile to gauge resiliency to downturn in business cycle
  5. Consist of reputable anchor tenants or tenants with long term tenancy (> 3 years)
  6. Defensiveness nature by having diversified assets or tenants
  7. Competent management team and trustee who knows the industry inside out

Reference: How to Invest in REIT in Malaysia

If you are squinting your eyes now, head over to my new LCF on Personal Finance Youtube channel to view this video.

Found this video useful? Subscribe below and I will notify you when I posted similar videos on other REITs to invest in.


Disclosure: Long in Capital Malls Malaysia Trust and Pavilion REIT.

Disclaimer: This is not an invitation to buy or sell. I do not guarantee the accuracy or validity of the information above. Do your own due diligence before investing and invest at your own risk.

{ 2 comments… read them below or add one }

LCF April 8, 2012 at 10:02 pm

Thanks Kris!
It’s Camtasia Studio

Reply

Knowthymoney April 8, 2012 at 5:35 pm

Hey LCF,

Good video :P

What software you use to capture the video why you annotate your voice?

Reply

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