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Just two days ago, I suggested that at 20c/unit, this is a value proposition. Although, technically, the malaise is quite obvious, I went ahead and bought more at 20c and 19.5c as its price declined in the last two weeks. Fundamentally, as a cash flow generator for the next two years, it is almost bullet proof.
I am very much tempted to add to my position but my investment in this REIT has already surpassed Saizen REIT to become the largest investment in my portfolio by market value now. So, unless its price weakens further to a more compelling level, the prudent thing would be to refrain from adding exposure to it.
For others who are thinking of initiating a position in this REIT, well, evaluate the facts and see for yourself. See if you agree with me.
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2 comments:
Doesn't this sale mean a reduction in DPU and NAV as well?
touzi
Hi touzi,
The NAV and DPU would see a small reduction. I believe it should be in the region of 3% or so.
The divestment is something which the management has in their "to do" list for a long time and it is good to see it done. Mr. George Wang has said that he would like the REIT to concentrate on Singapore for now with an eye on the Chinese market for the future. :)
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