If you are wondering whether the office REITs on my Dividend Stock Tracker are getting more attractive, do understand that the price is a function of future cash flow and it seems Grade A office rents have seen some tapering.
In investing, you can’t make a buy or sell decision based on 1 quarter. There is a need to look at office rental in general fundamentally, layering that with the general trend going forward for the next few years.
Interestingly, CapitaCommercial Management did state that prime office is more defensive, so if you are new to office rentals perhaps taking a look at next few quarter reports for CapitaCommercial, Frasers Commercial, OUE Commercial and Keppel REIT would see if they are really as resilient.
Update: Some new pictures:
Capitacommercial shows some of the past rental rates. Imagine locking in for 15 years at $18.80!
The above shows the occupancy trend of CCT. It would seem excluding CapitaGreen, CCT had a fall in occupancy since they have tenants pre-committed to CapitaGreen.
Here is the supply trend going forward.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- My Dividend Experience Investing in UCITS iShares iBond Maturing in 2028. - April 23, 2024
- We Invest into Popular Funds When They Are Popular, Exactly When They Started Turning to Shxt. - April 22, 2024
- Meal Prep 2.0 – Cooking Your “Go-to” Meal that You Look Forward to Eating Everyday. - April 21, 2024
Sillyinvestor
Sunday 6th of September 2015
Kyith
The av. Of rent is $11.
CCT has rent locked in for capital green for the next few years at minimum $11, raffles city av. Is super low sub$10. The other properties might faced some weakness but if I remembered correctly, none has rent above $12.
Not that I am rushing to buy... Just looking around so that I know what actually to get when time comes
Kyith
Sunday 6th of September 2015
thanks Silly Investor, I read a bit on Capitagreen and its locked in long. so this means this is not an orderly price correction. How long did they lock in for btw?
The problem is that, if this segment is so volatile, should we be in this segment at all. if we were to pick up what are we picking up for?