My Two REITs Pick for 2015 , if drop till horlan don't come gostan and scold me hor!
Ok B4 i start i need to put a large disclaimer .
DISCLAIMER : I don't have any vested interest in REIT s . My rudimentary understanding of REITs consists of 5hrs and above of "research" .
So here it goes , small kid's picks for REITs 2015. (To be awfully honest , small kid isn't really keen on the thought of me owning half of a basin somewhere in bukit batok or something like that la -.- it's just me , i know ) so with my ranting done , let's go .
PROs of REITs : Liquidity , leverage on the law of large numbers to purchase space :) , better yields from the dividends as compared to a typical share counter with similar price point ,
** You get to own property!**
1) Mapletree Commercial Trust
Key Figures:
Current Price : SGD 1.43 / Share
My Expected Share price by 3Q 2015 :
SGD 1.65 / Share
Div Yield : 5.44% (Don't worry , not 444 la)
**LOOK OUT for Third Party Acquisitions lo**
Look at the key tenants in its properties , look closely :p
This REIT why i picked leh? Very simple , you see ah , how many people go vivocity at least once in a year? Confirm got once one right? Then ask you again , every year you go walk walk , the shops got change? No right? very rarely has the tenants been chao-ing , you see the most easy to spot and profit margin not a lot one la , cause of the rent ma , the pet store still around means steady la !
So Ai Zai , steady a bit , don't worry , worst come to worst , the counter price never go up dividend yield steady steady win the big 3 liao , (Your Red junk ship , your Red rose with a white x one , then the red fence ) wah , all red hor... confirm won't harm people :p
Price/Book Value is a bit higher than SoilBuild at 1.23 , still ok la.
Growth potential is there ,still got more properties for it to acquire la on the market , skarli you see tomorrow some building on orchard got acquired hahahahah!
Period to watch : First two weeks of Jan 2015 , see if they got choot pattern or not !
2) SOILBUILD Business Space REIT
I really have no idea what to write for Soilbuild Biz Space REIT , except it is a slow and steady horse , looks a-ok on paper as it key tenants looks to be in business for the next 3 years at least , **LOOK OUT for Third Party Acquisitions lo**
Look at the key tenants in its properties , look closely :p
Key Figures:
Current Price : SGD 0.790 / share
My expected price by 3Q 2015 :
SGD 1.05 / Share
(Absurd target , i know -.-)
Div Yield : 7.8% Swee ah!
I mean i like diversified counters la , so this Soilbuild fulfill that , commercial use but got different different pattern of tenants hehe :) 好吃啊！
The reason why i like this REIT is because it is YOUNG , YOUNG REIT wanna expand one , so the management's eyes and ears open big big one , next year can see if any land parcel kenna ambeh by them , then huat lo !
Plus you see the anchor tenants la , don't need to say too much , you look at fusionopolis one can liao, steady rite?
Price/Book Value i also quite like , 0.9848 , not 1 yet , so got hope !
Period to watch : First Week of FEB 2015 !
So this post wasn't that boring after all right? There are 1001 blogs out there and tons of information out there for you to look at but ultimately , go with your GUT feel , because as an investor , you really need to know what you are paying for la , for traders , DYODD lor , my posts tend not to chunk data and figures and charts one , if you're interested in that , you can refer to google finance .
Till next time , cheers.
Ken
Pics from google , Info from Bloomberg , SGX and Google Finance , analysis/nonsense commentary from me la
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