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.