facebookAscendas Reit and Maple Log Reit have gone up a lot. Is it still worth buying it? If not, which REITs are still worth looking at? - Seedly

Eugenia_123

14 Oct 2020

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REITs

Ascendas Reit and Maple Log Reit have gone up a lot. Is it still worth buying it? If not, which REITs are still worth looking at?

Discussion (1)

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Alex Chua

14 Oct 2020

Seedly student Ambassador 2020/21 at Seedly

Is A-Reit and Maple Log Reit worth buying?

In my opinion, both of these reits are strong and stable due to stable growing dividend per unit, big market size, strong sponsor, etc. I believe that is why these 2 REITs caught your attention.

However, is it worth buying now? That is based on your investment strategy but I would not recommend buying them now.

Why these 2 REITs tend to go up?

Because these REITs are so good, they tend to sell at a premium. Price to book ratio is a common metric used to evaluate REITs. Currently, both are sold about 1.5. Even during the massive selldown on March, their Price to book ratio is about 1.1; They rarely fall below 1; if so, it is either a steal or an internal management issue. Thus, one could consider buying these 2 REITs at about price to book ratio of 1.3.

The purpose of buying these 2 REITs are long term dividend play so one could consider dollar-cost-average either every month/quarter/yearly or when the market price hits your target price.

Which Reits is worth looking at?

Overseas S-REITs are worth looking at such as Capitaland China Retail Reit., Cromwell European REIT. Some of these overseas S-REITs tend to be overlooked by retail investors.

Enjoy doing your due diligence

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