CapitaMall Trust: When is AK nibbling?

By A Singaporean Stockmarket Investor (ASSI) • October 8, 2014

Following a recent blog post in which my admiration for CapitaMall Trust's (CMT) management was once again mentioned, with the REIT's unit price having retreated from a recent high of $2.09 a unit, I decided to examine whether it makes sense for me to have some exposure to the REIT soon.

One thing that has held me back for some time is the matter of distribution yield. With an annual DPU of about 10c, give or take a small fraction, at $2.00 a unit, we have a yield of 5% and at $1.80, we have a yield of 5.55%. This is also yield made possible only with financial leverage. Related to this concern, some might remember the blog post in which I explained why I would rather invest in SPH than SPH REIT.