Skip Navigation Links
Analysis of industrial REITS
17 Mar 2021 (242 views)

I saw a news report that several analysts have recommended buying the industrial REITS (i.e. Ascendas, Fraser Logistics and MapleTree) due to the high dividend (above 3.9%) and the likely increase in dividend.

I show the financial figures below. 

I do not like these REITS as their price earning ratio is more than 19 times and their price is higher than the book value.

I prefer to buy Capitaland (a property company, not a REIT) as its price earning ratio is 12.5 times, dividend yield is 3.6% and its price is 70% of book value.

I will avoid Capitaland Integrated Commercial Trust as it is expected to report a sharp drop in profit.

I am interested in Hongkong Land as the price is 35% of the asset value. Although the stock shows losses for the previous and current year, the loss is due mainly to write-down of asset value. The ongoing operations is profitable and steady.

I am also interested in Lippo Mall IRT because the price is only 25% of the asset value and it is paying a good dividend. Although it is showing a loss for the previous and current year, I expect that it will be profitable when the Indonesian economy recovers, after the pandemic.

Note - I am giving my personal views. Please do not treat it as investment advice. I am not recommending the purchase or sale of any of the above stocks.

Tan Kin Lian

 


Analysis of industrial REITS
[Back] [Print]


I saw a news report that several analysts have recommended buying the industrial REITS (i.e. Ascendas, Fraser Logistics and MapleTree) due to the high dividend (above 3.9%) and the likely increase in dividend.

I show the financial figures below. 

I do not like these REITS as their price earning ratio is more than 19 times and their price is higher than the book value.

I prefer to buy Capitaland (a property company, not a REIT) as its price earning ratio is 12.5 times, dividend yield is 3.6% and its price is 70% of book value.

I will avoid Capitaland Integrated Commercial Trust as it is expected to report a sharp drop in profit.

I am interested in Hongkong Land as the price is 35% of the asset value. Although the stock shows losses for the previous and current year, the loss is due mainly to write-down of asset value. The ongoing operations is profitable and steady.

I am also interested in Lippo Mall IRT because the price is only 25% of the asset value and it is paying a good dividend. Although it is showing a loss for the previous and current year, I expect that it will be profitable when the Indonesian economy recovers, after the pandemic.

Note - I am giving my personal views. Please do not treat it as investment advice. I am not recommending the purchase or sale of any of the above stocks.

Tan Kin Lian