Commercial Offices Trusts are REITs that I seldom covered, but they have been beaten down pretty badly in this market. Checkout K-REIT, Suntec REIT, CapitaCommercial Trust and
their prevailing yields.
Why is it the industrial REITs, retail and healthcare REITs were able to held up much better than them?
I believe the primarily reason are
- Capital Intensive Purchases that we do not know whether makes sense. Read MBFC purchase by Suntec and Asset Enhancement by CapitaCommerical Trust.
- Weakening of rent revisions for office buildings
CapitaCommercial Trust (CCT) looks a good proxy if you think the market will improve in the long term. Yesterday CCT announced their Q3 earnings. At Investment Moats we recently got vested with 2 tiny lots.
I thought it’s a good idea to do a snapshot at how CapitaCommercial Trust look.
- Quarter revenue was 8.9% lower, NPI 9.2% lower and distributable income 7.8% lower ...
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