Which Reit to pick 2

 There are so many reits to choose, I group them in different groups.

1. 1st tier - strong and stable reits
2. 2nd tier - middle range price and growing reits
3. 3rd tier - low range price 

I have cover 1st tier in my first blog, let check out 2nd tier.

          2nd tier reits after gather all the information. Price and data base on 25th Sept 2020.

There are quite a few reits in this category, I shortlist those that are more popular and growing reits. 

From the list

The best reits from the 2nd tier are;

1. AIMS APAC Reit - I didn't expect this reit to be so good. High ROE and growing revenue.
2. Frasers Log & Comm Trust - high ROE, growing revenue and low gearing ratio but      lower DPU, unless I can buy it's at a lower price.
3. CapitaR China Trust - mid ROE, growing revenue and most important under value. As I  typing this, the price has went up to $1.29. 

Take note of Keppel Reit, revenue is decreasing and ROE is only 3.03%.

I like 2nd tier because price is still low as compare to 1st tier and the DPU is also higher. The potential is also greater. I prefer to have 6-7% DPU and if the price go up, that's will be the best.

Let check out 3 tier

         3rd tier reits after gather all the information. Price and data base on 25th Sept 2020

The best reits in 3rd tier are;!!!!!!

OMG how to choose, so many red colour, all these reits price are cheap and most giving out very high DPU. Is this what people said don't buy penny stock?

1. Lendlease Reit - still very new reit with IPO price $0.88 and ROE no update yet. DPU    is low, revenue stable, still undervalue.
2. SPH Reit - ROE good, revenue stable but sponsor SPH doesn't look too good.
3. OUE Com Reit - The only growing revenue but DPU is decreasing and high gearing        ratio.  

To better understand the reit before you invest, read financial report and portfolio will give you a inside of how well is the reit. Also take note of dividend payout ratio, if more than 100%, mean something is not right. 

Someone may ask why I didn't add First Reit into my 3rd tier. Just look at the sponsor Lippo Karawaci and Lippo family. If a reit do not have a good sponsor, any bad news from the sponsor will incur heavy selling of that reit. A good sponsor may even help the reit to expand further.  

Edit: AIMS APAC Reit DPU trend should be stable instead of growing. My mistake pointed out by one of the comment here and someone from FB. 

Btw AIMS APAC Reit ROE 8.53% and dividend 7.98% still one of the best in 2 tier.