Buy @ $1.29
Gave up waiting for lower prices. It’s even higher than the $1.285 I paid for the earlier ones that was cd (2.0523ct)! Never mind, treat it as a switch from my FCT which I’d entirely divested (due to my fears of their impending Private Placement capped at max 10% discount for the acquisition of Changi Point). 😀
From my “colourful” screens of NAV, Gearing Yield, the key negative is the Gearing @ 37.8% as the chances of Equity Fund Raising is high. This in turn, is usually Value Destructive to existing shareholders as it may be a Private Placement at a hefty discount of up to 10% or it may be Yield Dilutive due to lower DPU. For now, I’m willing to take the risk, in anticipation of better Rental Reversions at Alexandra TechnoPark in Aug-14 (my previous estimate is a max of ~+20% to DPU). However, I’ll be prepared to react on any adverse moves by the REIT Mgr…
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Colour Code |
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Gearing |
NAV |
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< 30% |
> 10% Discount |
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30% to 35% |
< 10% Discount |
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35% to 40% |
< 10% Premium |
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> 40% |
> 10% Premium |
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Office / Retail REITs |
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|
REIT |
Price |
Yield |
Gearing |
NAV |
|
|
K-REIT |
$ 1.230 |
6.496% |
42.4% |
$ 1.370 |
-10.2% |
|
FrasersComm |
$ 1.290 |
6.442% |
37.8% |
$ 1.550 |
-16.8% |
|
FrasersCT |
$ 1.830 |
6.126% |
27.7% |
$ 1.780 |
2.8% |
|
StarhillGbl Reit |
$ 0.830 |
6.060% |
29.6% |
$ 0.920 |
-9.8% |
|
MCT |
$ 1.315 |
5.941% |
38.7% |
$ 1.160 |
13.4% |
|
SPHREIT |
$ 1.020 |
5.451% |
26.9% |
$ 0.900 |
13.3% |
|
CapitaComm |
$ 1.610 |
5.168% |
30.0% |
$ 1.660 |
-3.0% |
|
CapitaMall |
$ 2.020 |
5.158% |
35.1% |
$ 1.710 |
18.1% |
|
SuntecReit |
$ 1.790 |
5.050% |
37.3% |
$ 2.056 |
-12.9% |