Homepage
PR Newswire
20-11-2023, 10:06 AM
Hi Shrivathsa,
In general. industrial REITs with assets in Singapore tends to trade at a higher yield mainly because of their shorter land lease. Which means, part of the yield can be considered as "compensation" for decaying land leases as they approach expiry.
Therefore, to do a fair comparison, you must look at other industrial REITs with mostly assets in Singapore and consider whether 9%pa yield is enough to compensate you for the risk taken. Also, do remember that ESR Logos REIT is not really a blue chip REIT but rather a mid size one. So, your data points must also be those that are of a similar size, while giving it a risk premium if you want to compare with a blue chip industrial REIT.
Hope that the above helps a bit in your REIT hunting.
In general. industrial REITs with assets in Singapore tends to trade at a higher yield mainly because of their shorter land lease. Which means, part of the yield can be considered as "compensation" for decaying land leases as they approach expiry.
Therefore, to do a fair comparison, you must look at other industrial REITs with mostly assets in Singapore and consider whether 9%pa yield is enough to compensate you for the risk taken. Also, do remember that ESR Logos REIT is not really a blue chip REIT but rather a mid size one. So, your data points must also be those that are of a similar size, while giving it a risk premium if you want to compare with a blue chip industrial REIT.
Hope that the above helps a bit in your REIT hunting.