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Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,300/month.

Monday, March 18, 2013

Analysis of Mapletree Greater China Commercial Trust


Current Price on 15th Mar 2013 = $1.06
  • Current Yield = 4.94%  
  • Price-to-book Ratio = 1.161
  • Assets per unit = $1.661
  • Debt per unit = $0.755 (including current liabilities)
  • Gearing = 45.3%

Mapletree Greater China Commercial Trust has debuted recently and has performed well aka they opened above their IPO price. This is expected because they have priced it at the top of their indicative price, reflecting the demand for their shares.


Looking at the statistics however, it has failed all my criteria. 4.94% is weaker than some of the preferential shares that we have. It is a premium REIT which means that it is trading at above NAV level. Its gearing is also quite high. Therefore, I believe that there is something which other investors has seen and I have not. Probably the expectation for it to grow at a certain pace pushes the price up. This is something which I do not rely on.

I did apply for its IPO and got 6 lots based on the fact that it is priced at the top of their indicative price. However, I am also looking for opportunity to sell this quickly, realizing some capital gains, and look for something else.

2 comments:

  1. Hi,

    Thanks for the good post! It is very informative. I would like to link my blog (http://www.valuestocksinvesting.blogspot.sg) to your blog. Please let me know if this is ok

    ReplyDelete
    Replies
    1. Hi Junming,

      Definitely. I will park it as one of my Blog list. Will it be ok if you do the same? :-)

      Delete