Like property but risky? REIT is your key, another one listing

If you like to read some financial tips for 2017, here’s a good compilation of many tips from different experts by, another site I frequent occasionally. One particular financial advice given within the compilation is one on Real Estate Investment Trusts (REIT). It saidthat this is a good investment potential. I think I agree too. REITs are considered stable due to the revenue which is mostly from leasing activities. Due to the current share market, REITs are also attractively priced these days and its dividends can easily be 50 percent higher than fixed deposit. Current FD rate is around 4 percent while the dividend returns for REITs can be as high as 8 percent. On average, it’s around 5.8%. Take a look at all of them here: REITs Malaysia Another one is coming up. KIP REIT. This is under Kepong Industrial Park (KIP) Group.
It will be listed in Malaysia on 6 February 2017. As per documents lodged with the Securities Commission of Malaysia on 30 December, it will be offering 234.15 million units of which 13.5 million units are open to retail investors. Its portfolio includes the KIP Mart outlets in Tampoi, Kota Tinggi, Masai, Melaka, Bangi, and Senawang. All these properties are valued at MYR580 million (USD130 million) and the aggregate occupancy rate is around 85.3 percent for the four month period ended in October 2016. At the indicative price of MYR1.00 per unit, KIP REIT seeks to raise at least MYR234 (USD52 million) million from the offering. Final listing price for units of KIP REIT has been set for 17 January. You can read the full article here: KIP REIT upcoming listing.
To those who feel the property market is too volatile but you still think property market will be healthy over a longer period of time, REIT may be something worth considering. After all, many of these REITs already have track records. As usual, do our own due diligence. Drop by the properties owned by them, see if they are doing well. As long as we could see the property, say the shopping mall is doing well, then that particular REIT would do well. REITs do not fluctuate a lot throughout the year because tenancy agreements are mostly long term and not monthly. Oh yeah, property stocks too, if you believe a certain developer is doing well. Happy investing.
written on 5 Jan 2017
Next suggested article:  property market will be worse with Trump’s win?


  1. I think at this moment most Malaysia REITs can’t distirbute 5.5% net yield base on their current prices. Correct?

    1. As per the numbers published, 5.5% still possible. Here.

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