The Iran War Verdict: Most SGX REITs Now Fail the "4% CPF Floor Test" | 🦖EP1460 #investingiguana
The Iran War Verdict: Most SGX REITs Now Fail the "4% CPF Floor Test" | 🦖EP1460 #investingiguana
I spent most of yesterday morning watching the Brent Crude ticker hit $80 and thinking about how quickly a headline in the Middle East travels to a shopping mall in Jurong.
Most investors see a spike in oil prices and think about their petrol bill or the cost of a Grab ride. But if you hold Singapore REITs, the real drain is happening silently through the gross lease structures of the buildings you technically own. When utility costs jump, it isn't the tenants who pay the price—it is your distribution per unit. The dividend you were counting on is effectively being burned to keep the lights on and the air-con running.
If you are holding retail or industrial REITs in your CPF-OA or SRS account and assuming they are "safe" income, this breakdown is specifically for you. We need to look at whether your yield actually clears the 4% CPF Special Account floor once you account for these rising energy costs and current gearing levels. For our community, the math has to be undeniable before we move, and right now, many of the big names simply don't pass the forensic test.
The full forensic analysis is waiting for you below.
📺 YouTube: https://youtu.be/J6bY5jy-yKM
📩 Substack: https://open.substack.com/pub/investingiguana/p/the-iran-war-is-paying-for-the-malls?r=5enmf1&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
