Recent Posts - My Stocks Investing

How to Select Singapore REITs with High Dividend and Low Risk?

Post author:Marubozu
Post published:June 20, 2014

June 8, 2014 Update. See detail Singapore REITs Fundamental Comparison Table (June 8) here.

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Note: NOT all the REITs have the same risk although they have very attractive distribution yield. High Distribution Yield does NOT mean it is safe. Vice versa, Low Distribution Yield does NOT mean the investment is no good. Investors must KNOW the risks involved when investing in Singapore REITs.

Two visual bubble charts to pick and avoid:

Undervalue Singapore REITs with High Distribution Yield (Value Pick)
Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)

See Last Singapore REIT Bubble Charts here.

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.