Sunday, May 18, 2014

Final REITs

After some consideration, I think I've narrowed down my future pick of REITs to just 4 picks.

1. OUE Comm @ $0.785

2. Fraser Comm @ $1.24

3. Lippo Malls @ $0.395

4. Starhill Global @ $0.775

I must say, other than Saizen REIT which I already own (and have been doing particularly well I must add), attractive looking REITs are Fortune and MapleTree GCC. I have decided against both these investments because I feel that both their property assets are in locations that have had massive property asset bubbles and a massive price correction will be due in place. Rather than try to guess the discount, I think for these 2 REITs, I will wait for the dust to settle before I enter the foray.

The only other REIT which I also think is favourable at current valuations is Ascott REIT. However, investing alongside my thesis, I think that we are due to see an economic downturn in the near future and their assets have a very lux aspect to it. Perhaps we will even see a much more attractive price in the future if my thesis does pan out.

Considering that though, I think that the current REITs that I own and this 4 that I am currently stalking are priced attractively enough for me. They are all about 10% or more below their NAV, which gives a nice margin of safety. Sure, they could go down, but probably not as much as the other ones around!

If I manage to pick these up, I doubt I will be making any more stock picks until the next correction comes around and breeds new opportunities.

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