Criteria for investing in REITS

what is the criteria for choosing the right Investing Reits?

NAV, Gearing, Asset Quality, Sponsor, Business Nature/Sector, yield.

Sponsor for example sph reit sponsor is sph .... fraser reits the sponsor is FCL ...

Ie the backer of the reits are impt to me, it much constitutes of what asset quality the reit will be getting in the long term.

Look at some of the smaller reits in sgx ... some industrial reits, the sponsor is small n unknown and the asset injection sometimes are very lousy .. Sabanas I say is one example

: Erm haha million dollar questions ... expected or supposed yield for reits - I dono.

For example, I compare the yield of Sph reit against the same peers like Fraser and capitamall to get a feel of what it's peer is having. I look at the relative yield against its peers at any point of time.

Then also need to look at their occupancy rates and if DPU has been increasing or decreasing for the past 5 years.. etc etc.

If I want to be super conservative I will just use price to book for a simple valuation of cos the Lower the better. 

I remb during GFC, all the reits are trading at deep discounts ... well no such sale anymore. 

generally buy below nav. pay a slight premium if reit are gd. I did for MCT. 

well managed reits is that dpu is growing y to y

gearing n interest cover , occupancy, debts repayment period need to be considered.

Example :

fct, mct, cct , mlt etc .

Best world, Sembcorp Ind, CAO, China Sunsine

China Aviation - From TA point of view it is rather bearish. The price has fallen off from the high of $1.80 to a low of $1.475. The is generally quite negative.

The price is hovering below the SMA lines which may likely see it trending lower towards $1.45 then $1.40 with extension to $1.35. dyodd

Best World 

Looks equally bad for the past 3 days as it has fallen from $1.51 to a low of $1.02 . More than 45 cents has been wiped-off or almost 32% value price reduction.
Looks like it may continue to trend lower.
Usually, after such a sever selling down, we may see a slight rebound.
I think it may continue to slide further after taking a short breather.
Short term TP 89 cents.dyodd

China Sunsine

Looks rather bearish from TA point of view!
I think short term it may go down to test 75 cents then 70 cents with extension to 65.
dyodd

Sembcorp Ind

Short term wise, i think it may likely continue to go down to test $2.80 then $2.70 with extension to $2.65.

( trade base on your own decision)

ComfortDelgro

ComfortDelgro - 13th Aug 2017

ComfortDelgro just released the 2nd quarter results and net profits decreased 6.8% to 78.4m.
Half year Net profit came in slightly higher at 161.9m (2.1% increased).

Company declared an interim dividend of 4.35 cents vs 4.25 same period last year.

Thee results seems mixed feeling. Nevertheless , I think the result is not too bad .

From TA point of view , it is hovering in a consolidation mode. I think with this set of result + increased in dividend paying out may temporary boosting the share price higher.

Short term likely to see if testing $2.37 then $2.40. Breaking out of $2.40 with good volume that may drive the share price higher towards $2.50.
not a call to buy or sell.
dyodd
( trade base on your own decision)

SPH

SPH - 10 Aug 2017

OPPORTUNITY is Surfacing..

The price seem overly beaten down for counter such as
SPH that may present some bargain hunting
opportunities.

SPH – has been on a downtrend mode from $3.78 on 25th
Oct 2016 to a low of $2.85 on 28th July. MACD is showing
sign of turning upwards. Yield of 4.8% to 5.9% looks
attractive. Reversal play opportunity.

$2.85 has been tested 2 times already over the past few trading days. Looks like it may breakdown eventually if another attempt to break through this support level.

Alternative scenario, if $2.85 is able to hold up well then we may have a good chance of see a rebound to move up to retest 2.90 then 3.00.

QAF

QAF - 6th Aug 2017

QAF(Q01) 
I have roughly work out the discounted Eps for past four years . Using current eps of 9.05 cents ( diluted eps - excluding divestment gain). 
CAGR 19.8%
Discount Factor - 8% ( more than double the 4% special account)
The Intrinsic value is $1.76 x 0.85 = $1.50.

Current price is $1.305, Yield 3.8%( 5 cents dividend p.a.), NAV 95.5 cents.
ROE 22%
Net income margin 13.8%
Net cash position

TA wise it is currently trading above the 20SMA line. 
It might have to make an attempt to clear 1.335 in order for it to rise further towards 1.36.

I think current price still has about 15% room to rise towards the Eps DCF value of $1.50.
Not a call to buy or sell.
dyodd

( trade base on your own decision)

Food Empire

Food Empire - 4th Aug 2017

Food Empire(F03.SI)
A Nice GAP up with a Beautiful White soldier couple with quite a high volume this is generally positive.

A second white soldier appeared on the chart. Likely to see a Third soldier to be played out. Taking out of 71.5 would certainly create the next wave of trending higher.

2nd quarter result is just round the corner. 
It may provide the catalyst to drive the share price even higher.
Recent share buy back by director may view current price is still undervalue.

1st Qtr result of EPS 1.18 US cents =  2.5 cents. Estimate the whole year EPS of about 5.5 cents . Let says a PE of 17x would be arriving a TP of 93.5 cents.

Short term TP of 78  .
DYODD

( Trade base on your own decision)