Which industrial reit would you choose? MapleTree Industrial Trust or Ascendas REIT? - Seedly
 

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Asked by Anonymous

Asked on 12 Jun 2019

Which industrial reit would you choose? MapleTree Industrial Trust or Ascendas REIT?

Why?

Which do you think will fare better in the long run?

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Gavin Tan
Gavin Tan
Level 4. Prodigy
Updated on 12 Jun 2019

Mapletree Industrial Trust (MIT) @ 2.14 Price

  • P/B ratio = 1.42

  • Distribution Yield = 5.68%

  • Gearing = 33.8%

Ascendas REIT @ 2.97 Price

  • P/B Ratio = 1.39

  • Distribution Yield = 5.40%

  • Gearing = 36.3%

Overall MIT is a better pick, due to a slightly higher distribution yield and lower gearing, but right now it is pretty expensive @ 1.42 PB ratio, so maybe wait for it to drop in price before picking it up?

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Question Poster

12 Jun 2019

I'm quite new to reits, and I would like to find out If I were to purchase MIT using a RSP, do I have to be concern about the current price?
Gavin Tan
Gavin Tan

12 Jun 2019

Hey Question Poster, personally, I feel that it would not matter because if you invest regularly, the price will be averaged down. A common phrase you'll hear is always "Having time in the market, is better than timing the market itself"
Tan Wei Ming
Tan Wei Ming
Level 5. Genius
Answered on 12 Jun 2019

Hi, I actually analysed Mapletree Industrial Trust and Ascendas Reit in January 2019.

Before analysing both REITS, I always felt that both are equally good. However, I feel that AREIT is far more superior that MIT in almost all the categories that I compared. I would still choose AREIT over MIT but there is no harm in buying MIT. If I have spare cash, I would buy MIT too if I want to own as many industrial buildings in Singapore.

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