Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

FE REITs can be perceived as 'riskier' because part of the distributable income arises&nbsp;from&nbsp;third party agreements which have&nbsp;nothing to do with rental income.These agreements are not&nbsp;indefinite. They will eventually expire and when they do, Distributions Per Unit ("DPU") will fall if rental rates have not risen to the 'supported' levels.In this insight, we take a look at 34 REITs (including Real Estate Business Trusts) listed on the SGX and study the performances of Financially Engineered (FE) REITs vs Non-FE REITs.&nbsp;Are Shareholders of FE REITs adequately compensated for the additional risks they are taking on? Let's find out...

FE REITs can be perceived as 'riskier' because part of the distributable income arises&nbsp;from&nbsp;third party agreements which have&nbsp;nothing to do with rental income.These agreements are not&nbsp;indefinite. They will eventually expire and when they do, Distributions Per Unit ("DPU") will fall if rental rates have not risen to the 'supported' levels.In this insight, we take a look at 34 REITs (including Real Estate Business Trusts) listed on the SGX and study the performances of Financially Engineered (FE) REITs vs Non-FE REITs.&nbsp;Are Shareholders of FE REITs adequately compensated for the additional risks they are taking on? Let's find out...

Financially Engineered REITs - Should you avoid them?

Suntec REIT

Financially Engineered REITs - Should you avoid them?