There are plentiful of trade calls daily on the internet and every trader/investor , media, hedge funds, bankers, etc are trying to convince you with their story why you should buy or sell a particular stock.
This is one of them; Simon Property and a follower asked me my views on it.
First thing first, I have not dabbled in any REITS thus far, being too late into the game and inadequate capital base. I could be wrong but the objective of investing in REITS is really after the dividends that it is paying out each year.
Say you invest in 100,000 in ABC REITS that pays you 6% dividend a year, that would gives you 6000 in dividends or 500 per month. Many investors like the idea of passive investing where they do their work once and expect to sit back, relax and take passive income.
Say , you need a monthly expenses of 3000 to pay your mortgage, insurance, transport, food, entertainment, etc. Working it backwards, to get 3000 dividends per month, you would require
600,000 (capital) multiply 6% dividend = 360,000 dividend annually or 3000 per month.
Of course, you can accumulate the capital base over time and also gain on the capital appreciation on the REIT share price. You can also compare this with , the largest retail reits in Asia. I am still awaitng........
Nevertheless, from the chart, it looks like there are more downside to go before we see any rebound. So, really, no hurry.