August 2024 P/L Calendar

With the impending rate cut, I am of the view that REIT will benefit from it due to lower financing cost and higher valuation resulted from the lower capitalisation rate. Lower interest rate is also more palatable for REIT companies to tap on acquisition opportunities. It is also just in time that Moo Moo started to launch the new features for us to trade Singapore Stock Exchange, what a good timing!

Hence, for the month of August, I shifted my focus to build my dividend portfolio focusing on REITS and Banks listed on SGX. SGX has some good quality REITS with impressive track record but the stock price of these REITS stock have been battered down due to high interest rate environment. Jerome Powell's speech at Jackson Hole Symposium provides more certainty on the rate cut and this provides good opportunity for yield seeking investors to invest in some of these REIT stocks.

To add on, here are some of the benefits of investing in REITs:

1) Exposure to different classes of opportunities- imagine by investing in REIT, one will have exposure to data centre, hospital, hotel, shopping mall, office tower etc

2) Regular income - REIT is mandated by law to pay out 90% of its income as dividend to shareholders. It is definitely a reliable income source for those investors seeking for passive income.

3) Convenience - as compared to buying physical property which one will need to deal with the paper works, purchasing REIT is convenient and very liquid as compared to owning a physical property. Not to mention one also doesn't need to manage the property and deal with the tenants!

4) Affordable - Investing in REIT can start from as low as 1 lot size consist of 100 units as compared to purchase of physical property which require relatively large capital outlay.