Suntec Reit

Yes, Suntec corrected sharply. I am not certain if it won't go down a bit more : Running yield is around 5.5%. Ok lah, but not particularly sexy.

I see several things which is positive for Suntec REIT.

1) Insider's wife brought shares recently 28 May 2013
2) Phase 1 AEI expected to be completed in June 2013 with ROI of 10%+
3) Phase 2 AEI commenced Mar 2013, expected completion Q4 2013.
4)$280 million convertible loan refinanced at 1.4% coupon rate.
5) Technical wise, chart showing support around $1.68 level.

Just my two cents worth of opinion.. i may be wrong.
Cheers
erelation

I used to own Suntec a few years ago, but I offload them at 1.59 quite sometime ago.

IIRC, suntec is still trading below NAV, which is a plus. Why I let it go.

1) For Reits and its accompanying risks, I expect it to reward me more than bonds and perpetual shares in terms of yield or/and capital growth.

2) When the yield get depress to below 7% and nearer to 6%, I find the 1% prenium unattractive for the risk i need to take, e.g. interest rate hike, rental rate fluctuation, debt level.

3) distribution growth would have offset the depression in yield, but the AEI would not improve the distribution significantly and there is no significant aquisition in the pipeline from its sponsor, after sutec stop at 1/3 stake in MFC and One raffles quay, and CK no longer have any other property in SIngapore.

Suntec defintely is a good reit to have as long as the price is right, it has quality assets and managment, but at current price, (after taking into consideration yield and growth prosepcts)does not seem to offer good margin of safety.

Just my 2 cents worth

Did you hear that sucking sound? It's me -- when I saw that 1,893,000 units of Suntec REIT were short sold today. It's a downtrend?

www.sgx.com/wps/wcm/connect/sgx_en/home/...hortSell20130603.txt

Further weakness today ,, so down to $1.715, which is getting my attention. Will it slip below $1.70?

From what I read, Suntec is now about 6% yield for FY14. and it is at 18% dividend growth over FY13.

A third of the mall is gradually reopening this month June,
maybe investor sentiment will also gradually recover.

$1.64 currently. Are you buying? anyone buying?