I gave a one chilli rating for Netlink NBN Trust IPO this week. The write up is here.
Business Trusts haven’t done as well as REITs in general in Singapore🤔 – probably because Business Trust started on a wrong foot and left a bad taste on investors. The first business trust to be listed was First Ship Least Trust and that left a very sour taste on investors as evidenced by the -19% since listing (ouch! see table compiled by Edge below).
The Edge compiled a list of Business Trusts performance and those that performed well are “real-estate” linked like Croesus and Viva Industrial Trust as well as perhaps, Hospitality and Healthcare Assets. One of the worst performing was Hutchison Port (you just can’t bet against LKS!).
What can you actually glean from the above table?
Assets that perform well have earnings that are more predictable …