Is Mapletree commercial trust overvalued at the moment?

Short-term, yes dividend yield less than 5%, below historical average. But you have to ask why people paying it at a premium, is it justified?

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1. Quality portfolio (the entire alexandra precinct)

2. Quality mgmt team

3. Interest rates looking to get cut again

4. Uncertainty in global market, flight to safety

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If your funds are short-term, maybe best not to invest. But if its long-term holding, no reason to buy smalls now and buy more when price dips in the future

In terms of valuation, MCT is quite “expensive” at current pricing.

While the portfolio is strong, with a track record of growing dividends, but the dividend yield is way below its historical average and price to book ratio is also trading at all-time high since 2011.

If you are looking for yields, MCT annualised yield is less than 4%, which is abit unattractive as compared to its peers.