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James Yeo

Editor at SmallCapAsia.com

10 Jun 2019

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REITs

What is the best REIT out there and why?

I want to see what parameters people use to evaluate reits

Discussion (7)

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Tan Wei Ming

10 Jun 2019

Founder and Writer at Frugal Youth Invests

The REIT that I always want to buy will be Mapletree Commercial Trust. MCT owns Vivocity which is the largest shopping mall in Singapore.

For parameters, I usually look at P/B ratio, dividend yield, quality of the assets such as occupancy rate, WALE etc.

For P/B ratio, I am comfortable in buying any quality REIT that is 1.10 and below. Dividend yield for me must be mlre than 5%. Occupancy rate must be high and stable over the years and WALE must be long too. However, not all REITS have long WALE as it depends on the industry the REIT is in.

Other than that, I will also look at the historical distribution, I prefer REITS to give higher or stable distribution every year.

View 1 replies

Kenneth Lou

10 Jun 2019

Co-founder at Seedly

CMT! CapitaMall Trust!

  • Oldest REIT
  • Strong and sustainable DPU
  • Strong management with proven track record in acquiring malls and doing AEI
  • Growing spending power of Singaporeans in malls in SG
View 2 replies
  1. P/B ratio is a good parameter but it isn't the most imporant, it is more of a guideline as to whe...

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