Friday, April 5, 2013

S-REITs: Capitamall Trust - Deep Value at Current Price

In the past year, S-REITs have been singled out as one of the best performing sector stocks in Year 2012. Stock price of most REITS have increased 20% -50% in the past year, making it fairly valued in the market. For investors who are still interested in investing in S-REITS, OCBC has recommended Capitamall Trust as a deep undervalued S-REIT which has been a laggard as compared to the other REITS. Hope everyone will have a profitable week ahead :)


  1. Do you know if OCBC's assessment is short-term or long term? CapitaMall Trust has gone up from $1 in March 2009 to $2.21 now, thats more than 100%. What is their(your) target price?

  2. Hi Hossain,

    I am not sure if OCBC's assessment is short term or long term but i would think that they are typically looking at a year holding period. OCBC's target price is $2.32 while my own estimated target price is between $2.30 - $2.36. Though at current price, the only upside is about 10+%, however considering that Westgate will be completed end 2013 and with the development of Jurong hub, it would contribute quite a fair bit of revenue.


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