For the past 12 months, Singapore Reits have fared poorly, and according to a BTinvest article, most had corrected up to 20% from the high. In the recent weeks, some of the Reits counters, had shown sign of reversal from this down trend.
How do we then choose the leader of the pack?
There are many parameters that one can use to select Reits for investment. You may view these parameters from the table generously prepared by another blogger mystocksinvesting.com. All of us know that it is just a matter of time the interest rate will increased, by how much, no one knows. In view of this, the first parameter that I used is the debt gearing ratio, and follow by more than 10% discount(more the better) to it's NAV. From the table, these were the ones identified:
- CapitaComm (5.3% yield)
- Starhill Global (6.25% yield)
The last parameter to consider will be the yield, and the higher the better. Does that mean that Starhill Global is the chosen one?
Up to now, we have only selected the strongest ones, in terms of lower debt and good margin of safety . Next we need to review the TA of these 2 counters, can you tell which one has broken the resistance and trended upwards.
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