S-REIT Investment Blog: TODAYonline | Business | Mapletree Commercial Trust to launch IPO

Welcome

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 $3,800/month.

Tuesday, April 19, 2011

TODAYonline | Business | Mapletree Commercial Trust to launch IPO

Mapletree Commercial Trust has set their price at $0.88 which is just above the mid-range of $0.84 to $0.91... Although it seems to be good news, I think it is otherwise. As I have mention previously, as long as the pricing is not at the top of the range, it shows that there is low demand at price $0.91 which is not good for MCT.

Relooking at this IPO, there is a selling point which is its net asset value. It is priced below its NAV and their loans are all unsecured which means that all their properties are unencumbered. This is a selling point because investors will not be worried whether the properties will be seized should something unexpected happen.

I won't be applying for this IPO because of its low yield. I am more concerned for portfolio repositioning and avoid too much diversification. I believe that I will have a chance to buy it at the same price after IPO.