Mapletree Commercial Trust

[daddy2007]

starlight1968sg:

Extreme high and low values have been presented. What about the launched prices?
Anyway, all investments come with a varying degree of risk. It is just how much risk an investor can swallow.

:celebrate:

[daddy2007]

financial_guru:

Capita Commercial Trust.
Peak Value of $2.41 in Jun 2007. Lowest value of $0.43 in Dec 2008 during the financial crisis (loss of 83%). Right now current price of $1.40 is still 40% below peak price. :!:

Mapletree logistics Trust.
Peak Value of $1.47 in July 2007. Lowest value of $0.31 in Dec 2008 during the financial crisis (loss of 79%). Right now current price of $0.90 is still 40% below peak price. :!:

SGX listed reits as an asset class so far does not have a good track record. Current prices of most reits have not recovered to 2007 levels.

We don't just buy REIT based on price. We should be looking at their NAV, Gearing, Interest Coverage, Corporate Rating, Occupancy Rate, Spread of Occupancy Rate, Debt Maturity Profile etc. Just to name a few evaluation criteria. Study their fundamental and enter with a right price. Take care of the downside and the upside will run by itself

[starlight1968sg]

rosemummy:

If interest rate moves up, both will see a drop in price.

People have been saying the interest rate would move north since we have been in an ultra low interest environment for such long, the problem is when.

[starlight1968sg]

daddy2007:

We don't just buy REIT based on price. We should be looking at their NAV, Gearing, Interest Coverage, Corporate Rating, Occupancy Rate, Spread of Occupancy Rate, Debt Maturity Profile etc. Just to name a few evaluation criteria. Study their fundamental and enter with a right price. Take care of the downside and the upside will run by itself

Ha.. this knowledge is what I lack of.
Too complicated for me to understand.
Possibly Hyflux pref shr is not that complex ? :roll:

[daddy2007]

starlight1968sg:

daddy2007:

We don't just buy REIT based on price. We should be looking at their NAV, Gearing, Interest Coverage, Corporate Rating, Occupancy Rate, Spread of Occupancy Rate, Debt Maturity Profile etc. Just to name a few evaluation criteria. Study their fundamental and enter with a right price. Take care of the downside and the upside will run by itself

Ha.. this knowledge is what I lack of.
Too complicated for me to understand.
Possibly Hyflux pref shr is not that complex ? :roll:

All these figures are in the annual report. Just look at the trend for the past few years and one can gauge how strong is the particular REIT. Don't think is rocket science. Just need to compile these criteria and measure against the threshold. E.g Gearing should be less than 35%, Interest Coverage more than 2.5x etc

Although not 100% foolproof, at least there are some basis for evaluation for entry. If one pick those good REITs, don't think they will cook their financial statements

I got a F9 for my Accounting... but these simple figures I can still understand..... hahahahaha

[financial_guru]

There's a good article here on REITs: http://www.lioninvestor.com/are-singapore-reits-a-good-investment/


As mentioned in some of my previous posts, I have similar views to him on REITS.