I was recently contacted by Kevin Shee, an entrepreneur and investor from Hong Kong via Facebook. Apparently, he found me through my Prime US REIT article on DrWealth. We chatted a few times about S-REITs and he thought it would be great if I were to share my views on his podcast, the Kevin Shee Show. The Kevin Shee Show is a relatively new podcast about entrepreneurship, investing, technology and other topics.
I sat down with him on National Day over Skype to talk about a variety of REIT related topics on his podcast. Here it is for your listening pleasure:
We discussed a wide variety of topics that I may or may not have written about in the past. If you want a crash course on certain REIT topics or just want to hear my drawling voice for the first time, have a go.
Some time stamps indicated by his website if you are interested to know what we talked about:
- 02:53 – KK’s introduction and background
- 04:43 – Specific REITS you should invest in
- 09:24 – Investing in Singapore REITS through USA listings
- 11:47 – The pros and cons of physical property vs. REIT
- 12:09 – “The main thing that I like about REITS over physical property is that it is easy to manage.” – KK
- 15:31 – How to know which REIT to invest in
- 19:49 – Big REIT and small REIT comparison
- 20:11 – “All REITs are good at the right price.” – KK
- 23:05 – Diversifying your REIT investment portfolio
- 26:14 – When should you sell the REIT
On hindsight, I don’t think I did a good job at explaining when a rights issue / equity fund raising is accretive to the REIT. It is a complicated topic that involves a lot of math to determine if a rights issue is accretive or not. As such, I slipped up when I tried to explain it in layman’s terms.
For a clearer explanation, I will reproduce what I’ve written in my Why Size Matters for REITs article about cost of equity:
If a REIT issues units at a price where new units are priced at a premium to book, which implies a lower yield cost, the deal is likely to be accretive. This is because you are issuing equity at a low cost to buy a property that is likely to yield more.
I thank Kevin for having me on his podcast.
Do let me know your thoughts if you agree or disagree with my views on the podcast.
PS – I’m not pictured in the thumbnail for the podcast to maintain some privacy 😛