'A DUMPING ground for underperforming real estate (assets)'. That was what a lawyer friend uttered when our lunch conversation topic turned to Reits, a relatively new investment vehicle that was introduced to the Singapore capital market at the turn of the century. He chuckled, "the big boys unload these properties onto unsuspecting retail investors". He is right if corporate governance is weak.
Beyond looking at dividend yields propelled by distribution per unit, investors should take a closer look at corporate governance practices. Corporate governance is deemed relatively weak in Asia by many. A private equity analyst once remarked that he prefers looking at European targets as the financial...
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