Finally Singapore REIT started selling off and SREIT P/B drops from 1.22 to 1.12. Is it good time to get in now as what The Straits Times (June 1, 2013) suggested? Personally I have cleared all my REIT portfolio and wait for a good opportunity for Great Singapore Sales. However I don’t think this is the right time to get in yet base on 3 reasons:
-
Fundamentally the current REIT is NOT cheap and still over value base on NAV.
- Technically most REIT has broken the uptrend support and starting a bearish trend.
- Distribution yield will drop if there is increase in interest rate.
Added Croesus Retail Trust.
- Price/NAV decreases from 1.22 to 1.12.
- Dividend Yield increases from 4.97% to 5.6%
- Gearing Ratio increases from 32.92% to 33.27%
