Singapore REIT Sell Off! Should you Take Profit Now?

Singapore REIT sold off on May 23, 2013 after Ben Bernanke’s speech on QE exit plan and shock contraction of China PMI. This caused Japan Nikkei plunged 7.3% in one day. Interestingly Singapore REITs also faced a wide sell off between 3-5% and this is very unusual because REITs are defensive in nature. It is time to really take a look at chart pattern and use technical analysis to exit the current portfolio. No if, No but, No need to hope and SAFETY first. Also bear in mind that the month of May is still not finished yet…. “Sell in May and Go Away?”

Note: Singapore REIT is over value at the moment.

See Singapore REIT Comparison table here.

Singapore REIT Sell Down May23-2013

Singapore REITs Comparison Table for Dividend Investment – May 2013

Marked BUBBLE in black! Amazingly people is willing to overpay > 70% of the value to invest in First REIT and Parkway Life REIT.

Singapore S-REIT stock comparison table 2May-2013

Compare to last month SREIT comparison table:

  • Price/NAV increases from 1.20 to 1.22
  • Dividend Yield drops from 5.34% to 4.97%
  • Gearing Ratio drops from 33.15% to 32.92%

First REIT chart shows Parabolic Curve.

First REIT May2-2013

 

Parkway REIT is at almost historical high.

Parkway REIT May2-2013

 

 

Doing Fundamental Analysis of Singapore REIT is relatively easier than stock. If you are interested to learn how to do research on Singapore REIT and also time the entry / exit by learning the simple Trend Analysis, you may want to check out my 1st public tutorial “How to pick Singapore REIT for Dividend Investing” .

 

Singapore REITs Comparison Table for Dividend Investment – April 2013

Added Average Price / NAV and Distribution Yield so that I can monitor these two numbers every month. In average, Singapore REIT is 20% over value base on NAV with Dividend Yield of 5.34% base on my comparison table below. Some of the REITs are extremely overvalue with high gearing ratio. Be extremely cautious if the stock market reverse to the down trend and the banks start to raise interest rate. Those REIT will be badly hit as they have to pay more interest for their debt. Alternatively, these REITs may  issue rights to repay the debt. The share price will plunge when the REIT managers issue right at huge discount.

Singapore REIT stock comparison 7-Apr-2013

Last comparison table of Singapore REITs.

Check out here if you want to know what are the important financial ratio to analyse REIT in Singapore.