Singapore Stocks - My Stocks Investing

Capita Commercial Trust: Under Watchlist

Post author:Marubozu
Post published:June 20, 2014

Fundamental Analysis of Capita Commercial Trust:

Last Price = $1.665
NAV = $1.6743
Price / NAV = 0.9986
Price / NAV (52 Weeks High) = 1.0506
Price / NAV (52 Weeks Low) = 0.8210
Distribution Yield = 4.836%
Gearing Ratio = 30%
Occupancy Rate = 98.7%
WADM = 3.7 Years
WALE = 7.9 Years
Base on Capita Commercial Trust April 14 Presentation.

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Technically Capita Commercial Trust is on the up trend. However, the stock price is getting near to the 3 years high of $1.745.

Compare with other Singapore REITs, Capita Commercial Trust is trading at its fair value with gearing of 30% and Price / NAV is getting near to the high side. Furthermore, the yield of 4.836% does not appear attractive to me as there are other REITs which can offer a better DPU yield. Combining both Fundamental & Technical Analysis, the current price for Capita Commercial Trust is not attractive to me at all. Keep in View.

I will be covering the above analysis method in my Singapore REIT Investing public workshop, I strongly suggest you to sign up and understand how to do a proper analysis (Fundamental Analysis, Risk Assessment, Technical Analysis) on the REIT before throwing the money into stock market by selecting the wrong REIT and investing in the wrong time. Investors should NEVER just look at the Distribution Yield for investment decision for REIT. High Yield REIT does NOT mean that it is a good REIT. Vice versa, low DPU Yield REIT does not mean that it is a bad investment. There is another aspect of Risk Assessment in order to have a well covered analysis.

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Starhill Global REIT: Under Watchlist

Post author:Marubozu
Post published:June 14, 2014

Fundamental Analysis of Starhill Global REIT:

Last Price = $0.81
NAV = $0.92
Price / NAV = 0.8804
Price / NAV (52 Weeks High) = 1.1042
Price / NAV (52 Weeks Low) = 0.8278
Distribution Yield = 6.21%
Gearing Ratio = 29.6%
Occupancy Rate = 99.4%
WADM = 3.3 Years
WALE = 5.1 Years
Base on Starhill Global REIT April 29 Presentation.

Technically Starhill Global REIT is trading in a Rectangle and range bound between $0.755 and $0.845.

Compare with other Singapore REITs, Starhill Global is traded at a 12% discount to NAV with Distribution yield at 6.21%. Fundamentally this REIT is attractive in terms of Price/NAV, Distribution Yield and Gearing Ratio. However, technically the chart is moving sideway and looks like this REIT is going through a retracement currently. A much more attractive entry level is to wait for Starhill Global to retrace back to the Rectangle support at about $0.755. The yield at this price is about 6.5% with Price / NAV about 0.82 (18% discount to NAV). A little concern over the WADB as about 30% debt is going to mature in 2015 and Starhill Global REIT may need to refinance at a higher interest rate, thus impact the DPU.

I will be covering the above analysis method in my Singapore REIT Investing public workshop, I strongly suggest you to sign up and understand how to do a proper analysis (Fundamental Analysis, Risk Assessment, Technical Analysis) on the REIT before throwing the money into stock market by selecting the wrong REIT and investing in the wrong time.

Singapore REIT Fundamental Analysis Comparison Table – 8 June 2014

Post author:Marubozu
Post published:June 9, 2014

FTSE ST Real Estate Investment Trusts (FTSE ST REIT) Index changes from 755.37 to 768.55 compare to last post on Singapore REIT Fundamental Comparison Table on May 9, 2014. The index is trading above 20D/ 50D/ 200D SMA with 20D/50D SMA trending up. This is an official uptrend for Singapore REITs.

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Price/NAV increases from 1.0022 to 1.0229
Dividend Yield decreases from 6.61% to 6.51%.
Gearing Ratio decreases from 33.76% to 32.94%
Added: Realigare HTrust.
Added two columns (Price/NAV High & Low). To my REIT workshop participant, I have uploaded the excel spreadsheet to the Facebook closed group.

In general (base on quantitative analysis and technical analysis), Singapore REIT is at fair value now and the distribution yield is attractive (but with risks). A number of REITs have started a confirmed uptrend base on trend analysis (using Technical Analysis). Buy on Dip can be a good accumulation strategy here for fundamentally strong REIT (well managed WADM & WALE, Diversified Tenant Mix, currency risk, AEI and acquisition to increase DPU, currency hedging).
Be extremely careful with those REITs with High Yield. High Yield does NOT mean that it is a good REIT to invest. Religare HTrust offers 9.1% yield but the risk is very high with super low gearing at 7.3%. It looks very attractive just purely base on the numbers but we still have to do the risk assessment in detail. I have posted my personal view and Risk Assessment in my Facebook Closed Group for my students. Ex-students who wish to join the facebook page please drop me an email marubozu@mystocksinvesting.com. State your name and your course date so that I can add you into the page.
Find out in the next workshop on “How to pick Singapore REIT for Dividend Investing” to learn how to do Quantitative, Qualitative Analysis and Risk Assessment Plus Identify the Trend on Singapore REITs to apply this accumulation strategy for Singapore REIT.