Dr Tee, Ein55 Mentor & Graduates have together organised 4 charity investment courses (REITs/Business Trusts in Nov 2015 and May 2017, High Dividend stocks in Mar 2016, and Discounted NAV stocks in Sep 2016) over the past 2 years, and donated a net income of around $70,000 to Tzu Chi 慈济 (Singapore). We hope to inspire more Ein55 Graduates to reach out to society and help others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they can also contribute back to society to help more people in future.
Here are the key learning points from the recent Charity Course on REITs and Business Trusts:
1) Investing for dividend income is one of the important criteria that investors must not ignore because historical data have shown so
– S&P 500 (1932 to 2014) – dividend contributes to 45% of portfolio return
– STI 30 (2003 to 2013) – dividend contributes to 49% of portfolio return
2) What are REITs (Real Estate Investment Trusts)?
REITs are collective investment schemes that invest in a portfolio of income-generating real estate assets such as shopping malls, offices, hotels or serviced apartments and hospitals. It is also a type of security that can trade on major exchanges like other listed securities.
– Assets of REITs are professionally managed
– Revenues are derived mostly from rental payments, >90%.
– Net income generated from assets must be distributed at least 90%, quarterly to unit holder.
3) What is Business Trust?
Business Trust (BT) is an investment vehicle structured so that a single company, known as the “trustee-manager”, holds and operates business enterprises for the benefit of its investors, but the unitholders do not have any operational control or shareholders’ rights. Business trusts allow retail investors to have a direct exposure to cash flow-generating assets, such as utilities, shipping, seaport, and it is suited to any businesses involving high initial capital expenditures with stable operating cash flows.
4) 7 Risk factors for REITs & BTs Analysis
– Market Risk and Income Risk which intervenes with each other
– Foreign Country risk especially currency exchange rate change
– Concentration risk – depending on single property or few tenants
– Leverage risk – downward revaluation of asset resulting in hit gearing limit
– Refinancing risk – unable to secure new loan or securing new loan at higher cost
– Liquidity risk – difficult to buy/sell portfolio asset
5) 4 Common Growth Strategies Adopted by REIT Managers:
– Acquisition – from sponsor or third party
– Asset Enhancement Initiative (AEI) – shopping mall to increase net liquid assets (NLA)
– Organic growth – positive rental revision and increased occupancy
– Development & re-development – cap limit increased to 25% from Jan 2017
6) Best Timing to Invest in REITs and Business Trusts
– Long-term Optimism and Mid-term Optimism < 25%
– Average dividend yield over 8%
We should drive the money (helping others when you are successful), not be driven by the money (making money for one’s own gain). Investors should learn the unique Optimism Strategies with FA (Fundamental Analysis) + TA (Technical Analysis) + PA (Personal Analysis) developed by Dr Tee to choose strong global stocks, buy them at a low price, then hold for consistent dividend payout or sell for capital gains. Free high-quality investment courses are provided by Dr Tee to the public.
The safest time to buy a stock is when everyone is afraid the sky will fall while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis; we should learn how to take this advantage to truly buy low sell high.
When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful as one can take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with his own personality.
The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc.) to buy safely, when to buy, when to sell, including the option of long term holding. So far over 20,000 attendees have benefited from Dr Tee high-quality free courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.
Learn 10 Strategies of Stock Trading & Value Investing (股市投资策略)
1) Master Buy Low Sell High for all investment markets (stock, property, commodity, forex, bond) (买低卖高：股票、房地产、商品、外汇、债券)
2) Profit in bearish and bullish markets, understanding the true impact of US Interest Rate Hike, Bullish Global Economy, Oil & Gas Crisis (环球经济)
3) Long-term investing strategies to outperform portfolio return of Temasek, Li Ka-Shing, Warren Buffett, major stock indices/ETF and other funds (长期投资策略)
4) High-probability Shorting techniques for short term traders to profit from falling stock market while others are losing money or doing nothing (短期卖空技巧)
5) Generate consistent Passive Income with REITS and real property with knowhow of high dividend stock and property market cycles (房地产信托股的被动收入)
6) Methods of Spring Cleaning for own stock portfolio to eliminate junk stocks without any hope (股票大扫除)
7) Time for Global Financial Crisis to buy blue chip stocks on sale (危机也是良机)
8) What to buy (stock screening), When to buy/sell (buy low sell how), How much to buy/sell (risk management): (股票三部曲：买何股？何时买卖？买卖多少？)
9) Fundamental Analysis (FA) + Technical Analysis (TA) + Personal Analysis (PA), integrated with unique Optimism Strategy by Dr Tee (乐观指数：三法一体)
10) Global Stock Market Outlook: emerging opportunities with high potential in Singapore, US, China & Hong Kong stock markets (环球股票市场展望： 新美中港，股票良机)
3 BONUSES for Dr Tee Workshop Attendees:
(Please click “JOIN” with link above and wait for Admin approval of membership)
- Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
- Optimism/ Fundamental / Technical / Personal Analyses
（乐观指数 / 基本分析 / 技术分析 / 个人分析）
- Investment risks & opportunities （投资风险及机遇）
- Dr Tee graduates events and activities updates （Dr Tee学员活动最新消息）
Bonus #2 for Readers: Dr Tee Investment eBooks x 2
Fresh from Oven: Download the latest 2 eBooks by Dr Tee on “Global Stock Market Outlook“, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & “Dream Team Portfolio” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited, learning Simple and Powerful strategies which deliver incredible results in stocks. Learn to position for each market crisis and opportunity with Optimism Strategies.
Click here to join future Dr Tee (Ein55) investment courses: www.ein55.com