Chart of the Week: Link REIT Poor Value Versus Singapore’s Mapletree REITs

There’s no arguing that Link REIT (SEHK: 823) is a veritable beast – the REIT listed in Hong Kong is Asia’s largest by market capitalisation. Over the years it has been a great performer, rewarding investors handsomely with multi-year unit price gains that saw it hit an all-time high earlier this year of over HK$90. But is its time at the top coming to an end?

Although it has been solid from a capital appreciation standpoint, its dividend yield has never been that compelling. Right now, it sits at a rather uninspiring 3.2%. What investors in Hong Kong may be surprised to know is that Mapletree Investments Pte Ltd’s Singapore-listed REITs have absolutely crushed Link year-to-date, in terms of returns (as you see below). And what’s more, their dividend yields are also significantly higher.

Mapletree Investments is 100%-owned by Temasek Holdings, a commercial investment company that’s wholly-owned by the Singapore government. There tends to be a common misconception that Singapore-listed stocks do not move much in terms of share prices yet Mapletree Commercial Trust‘s (SGX: N2IU) year-to-date return of 41.8% versus Link’s 7.9% says otherwise.

And with Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U) and Mapletree Commercial Trust sporting dividend yields of 5.1%, 4.9% and 3.9%, respectively, as well as owning assets all over the world (and not just in Hong Kong and China), there’s a case to be made for investors to take a second look at the Singapore REIT market.

Mapletree versus Link REIT returns

Source: CapIQ as of 27 September 2019

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本文所提供的信息僅供一般參考之用,並不構成任何個人化的投資勸誘或建議。作者沒持有以上提及的股票。
HK MoneyClub (www.hkmoneyclub.com)