To diversify or not to diversify....
作者:老查理 時間:2019-05-28 22:52:35
As most of the S-REITs are relatively expensive, should I focus on the sponsor as the potential target investment?- The sponsor is a well-known established property developer, with the asset management business (REITs) as one of the signifcant businesses.- The sponsor is trading at a reasonable price with approximately 4.8% yield (similar to commercial REITs but lower than industrial REITs)- The sponsor has managed different REITs in logistics, hospitality and industrials, with recurring revenue.- The sponsor is able to monetize its development projects by injecting them into REITs. Unfortunately, I do not see any Taiwan-based property developers with the similar business model. Investing in the sponsor will enhance diversification and maintains dividend play.