OUE (formerly: Overseas Union Enterprise)

[safetyfirst]

looks not bad selling close to nav and has 7% yield
is this more attractive than the sph reit?

price $0.88-0.90
99 yrs lease from 1957=> 43 years remaining.
NAV ard 90c so depreciation p.a. is ard 2.1c p.a.

@ a fwd yield of 7%, this implies DPU of ard 6.3c
taking away the depreciation, the actual returns is only 4.2c per unit so 4.7% p.a.

so out of this 7% yield, 33% of it is actually just capital redemption.

I like it when someone talks about depreciation, it is very important and relevant when referring to many of these leasehold properties.

Another reason why i avoid reits these days is because many of them are quite leveraged, i dont want to imagine what will happen when interest rates go up, i dont want to be sucked into a cash call, that's pretty dumb when you are certain that interest rates will 100% go up in the next 5 years

Haha that aside, i made $224 for selling my SPHreits this morning

Not vested in any reits anymore