- Yield = 5.83%
- Price-to-book Ratio = 0.815
- Assets per unit = $3.412
- Debt per unit = $1.307 (including current liabilities)
- Gearing = 38.3%
- Credit Rating = Baa2
Suntec REIT is one of the largest REITs in Singapore with only Singapore assets. They have just reported their results which are quite good as there is an improvement from the previous quarter. Let's look at the results.
Yield is at a decent 5.83%. I used the word decent because that is the average of office REITs in Singapore. And the price-to-book ratio is quite strong at 0.815 which means we are buying top grade office assets at 18% discount. This is one of the lowest among the office REITs. Gearing is at 38.3% which is quite normal.
Suntec REIT is one of the largest companies in Singapore. Thus, if I use OCBC Securities Margin Loan guidelines as my guide, OCBC Securities is willing to lower their loan interest rates on Suntec REIT to 3.5% from 6.5%. I see that as an affirmation of their company strength and credit rating even though it does not fulfil my investment criteria.
This REIT is for those who are only keen to invest in blue chips or only major companies. 5.83% yield is quite decent. For me, I see this as a office REIT benchmark to compare with other office REITs but I am not investing in this. Maybe I belong to those who are keen to take more risk to achieve higher yield.
Yield is at a decent 5.83%. I used the word decent because that is the average of office REITs in Singapore. And the price-to-book ratio is quite strong at 0.815 which means we are buying top grade office assets at 18% discount. This is one of the lowest among the office REITs. Gearing is at 38.3% which is quite normal.
Suntec REIT is one of the largest companies in Singapore. Thus, if I use OCBC Securities Margin Loan guidelines as my guide, OCBC Securities is willing to lower their loan interest rates on Suntec REIT to 3.5% from 6.5%. I see that as an affirmation of their company strength and credit rating even though it does not fulfil my investment criteria.
This REIT is for those who are only keen to invest in blue chips or only major companies. 5.83% yield is quite decent. For me, I see this as a office REIT benchmark to compare with other office REITs but I am not investing in this. Maybe I belong to those who are keen to take more risk to achieve higher yield.
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