S-Reits have been moving up lately in probably catching up or valuation adjustment. S-Reits have been in limelight for past months due to the amount of debts maturing this year. Since then cash call in the form of Rights issue, Share Placement and loan refinanicing have eased some of the concerns of S-Reits high gearing ratio. From the first half of the year earnings, S-Reits also recorded mixed performance. Some still have the ability to distribute out better than last year dividend, some maintain the payout ratio whereas some have to reduce in order to shore up their cash flow position. The average yield of S-Reits as of today stands at 9.886% ( http://reitdata.blogspot.com/ ) which is almost double that as compared to 2 years ago. The main reason was due to the depressed of price level for the S-Reits as global financial meltdown has caused concern on debts worrying and depreciation of assets value. If the worst of the economy is over then at current average yield of 9.886%, S-Reits as a long term constant income investment instrument is at a very attractive price level presently.
Technically, both the short and long term indicators of some of the S-Reits are on an uptrend and if the momentum is able to sustain, they could move to the following target price.
1. A-iReit :- tp $1.10
2. A-Reit :- tp $2.00
3. AscottReit :- tp $1.08
4. Cambridge :- tp $0.62
5. CapitaComm :- tp $1.16
6. CapitaMall :- tp $1.84
7. CapitaRChina :- tp $2.12
8. CDL HTrust :- tp $1.85
9. FrasersCT :- tp $1.16
10. K-Reit :- tp $1.25
11. Mapletreelog :- tp $0.73
12. Starhill Global :- tp $0.705
13. Suntec :- tp $1.40
Strategically, for a long term investor on S-Reits, at present price level could slowly accumulate given the attractiveness of the dividend yield. If the coming earnings season ( staring from mid October 09 ), these S-Reits are able to produce another set of improving result, the present price level might be the cheapest one could ever get.
