Tuesday, June 16, 2009

S Reit - Worth a look

Below base on closing price on Jun 12, 2009:

Starhill Gbl (P4OU)
DY:10.1%,Closing price:S$0.71,NTA: S$1.43。

CapitaComm 嘉康信托(C61U)
DY:11.1%,PE:3.8,Closing price:S$0.91,NTA: S$2.94。

CapitaMall 嘉茂商产信托(C38U)
DY:10.0%,PE:4.3,Closing price:S$1.43,NTA: S$2.44。

SuntecReit 新达信托(T82U)
DY:12.9%,PE:--,Closing price:S$0.975,NTA: S$2.001。

SaizenREIT 最善房产信托(DZ8U)
DY:40.5%,PE:--,Closeing price:S$0.135,NTA: S$0.85。

Cambridge 剑桥工业信托(J91U)
DY:16.7%,PE:8.6,Closing price:S$0.36,NTA: S$0.73。

CDL HTrust 城市酒店信托(J85)
DY:13.9%,PE:--,Closing price:S$0.765,NTA: S$1.39。

MapletreeLog 丰树物流信托(M44U)
DY:12.3%,PE:7.1,Closing price:S$0.59,NTA: S$0.90。

LippoMapleT 力宝-丰树印尼零售信托(D5IU)
DY:15.8%,PE:--,Closing price:S$0.355,NTA : S$0.727。

MacCooklReit 麦卡特库克工业房地产(BU5U)
DY:25.9%,PE:--,Closing price:S$0.345,NTA : S$1.09。

AscottREIT 雅诗阁公寓信托(A68U)
DY:12.8%,PE:--,Closing price:S$0.69,NTA: S$1.51。

K-REIT K信托亚洲(K71U)
DY:13%,PE:23.8,Closing price:S$1.00,NTA: S$2.22。

First REIT 先锋医疗产业信托(AW9U)
DY:12.2%,PE:7.4,Closing price:S$0.625,NTA: S$0.93。

Currently, most of the Singapore REIT are trading around DY of 11% or more. Some of the counters are traded below 50% of the NTA. This is a good investment opportunity, just consider one can receive 11% dividend with potential capital return in next 5 years.

The reason why REITs trade at the discount of NTA was due to glommy economy especially those properties located in US and Europe. Due to the aggressive buying of new asset in past two years, some company actually borrow too much. Some of companies actually not able to pay the dividend as they need to generate or retain more cash. Couples of companies are considering right issue to pay for the debt or raise the capital to meet the comfortable level.

When more shares issues and circulate in the market, it will further damper the market price. Hence, one need to consider carefully before invest in REITs, not only the return on dividend rate and NTA alone. REITs is different from typical stock, it's depend on the rental to generate the cash flow and income, hence as long as they have the well diversified portfolio, be it in industrial or office building, we should have a very good return of more than 10%. The current under appreciated price provide an opportunities for one to enter this field with low cost.

Related link: Housing Investment

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