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2 REITS That Are Trading At Their Twelve-Month Lows

A favourite sector for Singapore investors is real estate investment trusts (REIT).

Why?

This is probably due to the defensive nature and their, generally, higher dividends.

Thus, for investors or potential investors of REITs, it could be useful to follow certain strategies.

Personally, I like to use a simple screen to begin my search. Here, I would start by looking at REITs that are trading at close to their 12-month lows and high dividend yield. Then, I would examine each REIT to understand their property profile, management calibre, and also the REIT future prospects.

With that in mind, let’s look at 2 REITs that are trading close to their 12-month lows and their respective dividend yield.

1

Source: Author’s Calculation

Fraser Hospitality Trust (SGX:ACV) is the first global hotel and serviced residence trust to be listed in Singapore.

It has one of the largest international hospitality portfolios with the most number of rooms – 3,534 in total, comprising hotels and serviced residences. Geographically, FHT is diversified across Asia, Australia and the United Kingdom.

The trust has 14 main properties that include Intercontinental Singapore, Fraser Suites Singapore, The Westin Kuala Lumpur and others.

Sabana Shari’ah Compliant Industrial REIT (SSCIR) (SGX: M1GU), is the world’s first REIT that has adopted the standard of Shari’ah compliance. That means that it derives more than 95% of its gross revenue from tenants engaging in permissible activities under Shari’ah investment principles.

Presently, SSCIR has a portfolio of 21 industrial buildings that are located entirely in Singapore. Most of the properties are located in close proximity to the principal industrial zones such as Loyang (close to Changi Airport), Penjuru (situated near to Singapore’s shipping ports) and Tai Seng (a high-tech space hub situated close to two expressways and a Mass Rapid Transit station).

Conclusion:

A 52-week low, is just a number. There is no guarantee that the shares won’t fall further. So, it is important for investors to do their own research, understand how the REITs operate and where their revenues are generated.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.