Wolf Money(In conversation with Kenny Loh, Founder of REITsavvy)
Last Friday, I have the pleasure of having a conversation with Kenny Loh, the founder of REITsavvy. The setting was at ToastBox, Bugis. Many people will be familiar with Kenny. He is a regular guest on Money Fm and his views are well sought after by many media outlets, especially in the area of REITs. Since my guest is a REITs expert, our conversations and my questions would evolve around REITs and their outlook.
Wolf: How do you see the current REITs market?
Kenny: The REITs market has gone through a period of uncertainty. He believes the REITs are in the process of bottoming out, given some REITs reported positive dpu growth in their latest financial quarter.
Wolf: Which are the REITs that have strong fundamentals?
Kenny: Fraser Centrepoint Trust and Mapletree Industrial Trust.
Wolf: Why these two particular REITs?
Kenny: I like the well-run malls under Fraser Centrepoint Trust management. Although there are concerns about some Singapore malls located near RTS losing business to the malls in JB. Most of the malls under FCT cater to daily essentials like f&b and supermarkets, which are unlikely to be affected by the opening of RTS. As for Mapletree Industrial Trust, he likes the data centre assets in US as those high specifications data centres are unlikely to be obsolete or replaced by cheaper locations.
Wolf: What is your view on local REITs with only overseas assets?
Kenny: Those REITs with overseas assets had a very bad few years due to the high borrowing cost, but not all are badly run. He gave Elite REIT as a well-run example with stable income coming from long leases to the UK government running job and pension centres. The pure overseas-focused REITs are trading at ridiculously low valuations with some as low as 0.3x to the price of book. For those investors with a stomach for risks, a small allocation into those beaten-down REITs might represent a good risk reward if those REITs stay solvent and recover a couple of years down the road. However, he emphasised the strategy is not for everyone.
Wolf: How do we improve REITs allocation among local investors, especially among younger investors?
Kenny: REITs are well invested by more senior investors wanting a stable recurring income. Young investors see REITs as slow-moving and less attractive for those seeking growth companies. The stock exchange could allocate more resources to educate the public on REITs as the sector remains a core product of the exchange. With the closing of CPF SA, there are a lot yield-seeking investors looking for places to park their cash. He also felt strongly, the 5b MAS fund should have included the REITs too.
Wolf: How can our exchange increases the vibrancy of the market?
Kenny: He feels financial institutions should allow their staff to invest in our market without the cumbersome requirements of having their directors or head of department approve their share purchase. At the minimum, staff should be allowed to buy or sell any index ETF or sector ETF without the need to sought approval.
Special thank you to Kenny for taking his time to share his insights. I hope to return with more interesting conversations with my invited guest in the future.
*Views expressed by the guest are his alone, kindly do your own due diligence.
About Kenny Loh
I am Kenny Loh, a Wealth Advisory Director specializing in holistic investment planning and estate management. My mission is to assist clients in growing their investment capital while creating a passive income portfolio for retirement. Additionally, I facilitate the seamless transfer of investment portfolios to beneficiaries through tax-efficient strategies. As part of my role, I ensure that capital appreciation remains tax-free, and wealth transfer is optimized through strategic asset structuring.
Furthermore, I serve as an SGX Academy trainer, specializing in S-REIT investing. You can find my regular monthly updates on MoneyFM89.3 and participate in SGX webinars and seminars.
From its humble beginnings in 2009, mystocksinvesting.com was founded. Kenny Loh started this website as a financial blog and an avenue to share his knowledge about stocks and trading. As years went by, this website has grown and currently reaches 19 thousand monthly visitors from 110 countries worldwide.
Over the past 11 years, Kenny Loh has evolved from a personal financial blogger, to a property agent, before attaining certification as a Certified Financial Planner (CFP). Beside this, Kenny has also taken on the side job of teaching REITs to other like-minded investors, speaking at many events such as InvestFair and REITs Symposium. In 2018, Kenny joined Adam Khoo Learning Technologies Group (AKLTG) as an Investment Coach.
https://mystocksinvesting.com/about/
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