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.