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The Weekly Nibble: Choosing the Best REITs

Here are some of the more interesting articles on real estate investment trusts (REITs) that have appeared on the Motley Fool Singapore’s website this week.

Are REITs Worth Considering When Rates Rise?

In a rising interest rates environment, are REITs still worth investing in? To answer that, David Kuo tells us to look at the “prevailing credit conditions and the state of the economy”. If either one of the factors is favourable, then REITs should do well.

However, once you have determined that one or both of the factors above could be in your favour, which REIT would you choose out of the many REITs listed in Singapore? Certainly, not all REITs offer the same value and the REIT with the highest yield does not necessarily mean it’s the best. Check out David Kuo’s article to learn about three metrics to use to choose the best REITs for your portfolio.

First REIT Versus Parkway Life REIT

In this two-part series, Jeremy Chia pits First REIT (SGX:AW9U) and Parkway Life REIT (SGX:C2PU) against each other to see which healthcare REIT is a better buy. Through the articles, you can also learn more about analysing REITs in general and the metrics to look out for.

a) For Part 1 (on the financials) – go here

b) For Part 2 (on the valuation) – go here

4 Metrics to Look for in a Hospitality REIT

Hospitality REITs have their own set of metrics that you can use to analyse them. In his article, Jeremy Chia explores four such metrics –  revenue per available room, gross operating revenue and profit, average daily rate, and occupancy rate – that are specifically used in the hospitality sector. Can you use the metrics to analyse the performance of hospitality REITs such as Frasers Hospitality Trust (SGX: ACV) and Ascendas Hospitality Trust (SGX: Q1P)?

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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 Sudhan P doesn’t own shares in any companies mentioned.