tag:blogger.com,1999:blog-3446185363611478127.post2098871257567677258..comments2024-03-18T15:10:20.143+08:00Comments on Azrael's Financial Cents: Random thoughts about REITs outperformanceAzraelhttp://www.blogger.com/profile/00870868109481294755noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3446185363611478127.post-35340905360139462162019-05-14T18:17:36.559+08:002019-05-14T18:17:36.559+08:00Hi KK,
Thank you for dropping by.
I was also th...Hi KK, <br /><br />Thank you for dropping by.<br /><br />I was also thinking like, if you look at the other developers (CDL, HKL, etc) all have rather low gearing, Capland previously had much lower gearing as well.<br /><br />But I agree that recurring income+tax advantage does boost it a lot.Azraelhttps://www.blogger.com/profile/00870868109481294755noreply@blogger.comtag:blogger.com,1999:blog-3446185363611478127.post-78998318467786585022019-05-14T12:40:37.576+08:002019-05-14T12:40:37.576+08:00To me, Debt to Assets or Debt to Equity are just 2...To me, Debt to Assets or Debt to Equity are just 2 sides of the same coin. If you compute Debt to Assets for Capitaland using AR2018 figures for example, you get about 36%, which is similar to its REIT counterparts.<br /><br />The reason for the difference in performance I feel is 2 fold:<br /><br />1) Quality of earnings - Recurring rental income vs lumpy development income<br />2) Tax advantage of REITs<br /><br />These 2 factors lead to better yields and interest among investors, thus better performance.KKhttp://risknreturns.comnoreply@blogger.comtag:blogger.com,1999:blog-3446185363611478127.post-33163274758263028422019-05-14T10:27:31.793+08:002019-05-14T10:27:31.793+08:00Can you image what happened to society when SREITs...Can you image what happened to society when SREITs become 10 bagger? CreateWealth8888https://www.blogger.com/profile/04870750974362417154noreply@blogger.com