Price on 26th Jan 2012 = $1.705
- Current Yield = 5.35%
- Price-to-book Ratio = 1.082
- Assets per unit = $2.756
- Debt per unit = $1.18
- Gearing = 42.8%
- Interest Cover Ratio = 5.5 times
- Secured NAV = $0.894 (52.43%)
CapitaMall has delivered their results of 5.35% yield and they are trading at a premium of 1.082. They are the market leader with $9.1 billion dollars worth of assets and cash. To me, they have become the benchmark of retail REITs in Singapore which others will need to compare themselves to.
As they are the "benchmark", it is deemed to be relatively safer than other smaller REITs (with a corporate rating of A2, better than some countries). Thus, if your risk appetite is not high, this would be a stable REIT to start with. However, for the same reasons their statistics have become not attractive at all. All indicators are way off my criterias. Mapletree Commercial Trust are trading at a higher yield. Moreover, it is also quite safe. Starhill Global and FCT has moved on to overseas properties which has a higher risk.
It would be good to use it as a benchmark and compare other REITs against it rather than using other indicators like government bonds as always shown in the REIT slides. But I won't be investing in this.
As they are the "benchmark", it is deemed to be relatively safer than other smaller REITs (with a corporate rating of A2, better than some countries). Thus, if your risk appetite is not high, this would be a stable REIT to start with. However, for the same reasons their statistics have become not attractive at all. All indicators are way off my criterias. Mapletree Commercial Trust are trading at a higher yield. Moreover, it is also quite safe. Starhill Global and FCT has moved on to overseas properties which has a higher risk.
It would be good to use it as a benchmark and compare other REITs against it rather than using other indicators like government bonds as always shown in the REIT slides. But I won't be investing in this.
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