Hi, Does it make sense to buy CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) now? before the merger? Looking to invest in REITS. Thanks.?

Hi anon,

I'd say you can buy CMT instead of CCT if you are looking at holding long term. CCT unit holders will be given CMT shares plus cash, which may be an issue as you'll end up with odd lots. So it's a lot easier to just buy CMT in my view.

While I won't write an essay on my analysis, personally I feel that the merger is good for the REIT. With bigger headroom to take on more debt, the new REIT will be able to look for more growth opportunities beyond Singapore. We're quite saturated (there's still room, but not much left) for retail malls and having more room for expansion outside of Singapore is quite welcome, as well as a mandate that is not limited to retail, but commercial as well.

You can use dividend valuation method to find out the fair value of any REIT!

Its quite a cumberosme process but trust me, it will give you an idea at how much is the rough fair value you should pay for a REIT.

Made an in depth video on dividend valuation method.