Wolf Money(Book recommendation)

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I remember Gabriel Yap as a broker from DMG Partner securities. I used to watch quite a lot of business news on tele when I was just starting out as a broker decade ago. He is also a regular stock market pundit on Channel News Asia. He always made a flamboyant appearance on tv with a different pair of fashionable specs. He will end it with his signature goodbye after every show “This is your angel Gabriel Yap signing off”. I find him quite an interesting pundit to watch on tv. 


 “Making your millions in reits” by Gabriel Yap is a book on reit investment. It is a comprehensive guide on what to look out for when one is considering investing in reits. There are also the questions of why, how and when to invest in reits. There are certain pitfalls to look out for when one is investing in the space of reits. 


(Contents)

Drawing from my experience. A CEO of a company which happens to be a sponsor of a reit once mention the way to maximise value of a property is to sign a sale and lease back agreement which has a rental that is way above market rate. Given the high rental income from a property, it will ensure the property will be valued at a higher price by the property valuer when injected into the reits. Eventually when the lease expired, the reit is stuck with empty properties which are valued at high price eventually when reality set in to get new tenants, the properties can’t lease out at the high rental charged previously. It is a spiral down to bottom with valuation and dpu taking a hit which affect the price of the reit. Always be careful of financial engineering deployed.

The book mention the mission critical things that make the reit successful, the type of property acquired, was the property a dpu(dividend per unit)accretive acquisition? Is the debt level of reit sustainable? Gabriel also share his success story on his investment in Fraser Centrepoint Trust. He had since retired from stock brokering, focusing solely on teaching people how to invest in reit. I find the book informative. It is a practical guide on reits investment. The book goes onto the Lone Wolf Investor recommendation list for its comprehensive and updated views on the reit market post covid 19.


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for information only. Buyer beware,do you own due diligence.

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