REITs meltdown & what it means

Ever since the recent REITs meltdown/sell-off, prices of some REITs have fallen below their NAVs & are now more attractive than ever. When REITs share prices fall, their yield on cost increases in favor of income investors. Bank analysts feel that the market is over-reacting & I think so likewise. As I adhere to the saying of "Happiness is best experienced when shared", I have decided to share my personal watchlist in this current bearish market which I think wont last for long. Please bear in mind that I consider myself as a long-term investor & I'm investing mostly for stable income from dividends with capital gains being my 2nd priority. I prefer to invest early in life, letting time do the magic of compounding effect & I will accumulate when I feel that yield is attractive. 

"The rich invest in time, the poor invest in money" - Warren Buffet.

Saizen REIT (Japan Residential)
current price 0.176 (down 25% of 52wk high value)
current yield at 7.5%

Lippo REIT (Indonesia Retail)
current price 0.480 (down 17% of 52wk high value)
current yield at 7.4%

Religare Health Trust (India Healthcare)
current price 0.845 (down 15% of 52wk high value)
current yield at 9.35%

OCBC bank analyst even highly recommend Starhill Global REIT (0.870, yield 5.5%) for its growth potential, strong fundamentals and compelling valuations. Futhermore, Starhill very recently renewed rent with Toshin Developement. Suntec REIT seemed to have lost its charm & fallen out of investors favor plunging to 1.640 with higher yield now at 5.5%. I certainly dont think it's rational for Suntec's plunge at all but Mr Market is far from rational. DBS bank analyst are still recommending Perennial China Retail Trust (0.570, yield 6.7%). To be honest, the current meltdown has made me a little gloomy but when I look futher into the future, I feel comforted as I know my investments are not darts thrown in the dark but rather are sound investments that have the potential to grow long term. With that, I hope most of you arent panicking in this recent meltdown but instead are on the look out for the best bargains.

Opportunities in a "mini-crash"

China & US markets were the main culprits behind the dip in the Singapore stock market recently (&currently still on-going) China's economic outlook was dull & US has decided to stop printing money. It's a great time now to buy in some  stocks especially if prices have plunged more than 10%. Many of the REITs have fallen & it's a good time to buy in some now for mid to long term investment considering that for the past few months, REITs prices have been climbing upwards steadily.

Of course one may never know when a stock hits it's lowest therefore it's crucial to set your own target price. If you managed to lock in some shares at your desired target price, be satisfied & not grumble. Something which I haven't quite master yet. Find the courage within yourself (or from other sources) to buy when shares are falling. Buy on weakness & wait for the share prices to bounce back.