Mapletree Commercial Trust (N2IU)

October 2013

Source: MCT website

I remembered the day I bought my first stock - Mapletree Commercial Trust ("MCT").  I was having a hard time at work and decided that I need a way out of this never ending nonsense. I walked out of my office and within minutes set up an account at SGX and then at OCBC.

When I was back at my seat, I went to SGX and looked at the different sectors. I decided that since I'm new at this, I should pick an easy sector with a short list. That was how I ended with REITS. I figured that REITS would suit me to a T as I know a bit about the industrial and commercial property market in general due to my previous job as a corporate banker.

As for retail, I've heard and read the news on how rents are going through the roof. The rest of the day I was looking at each REIT carefully, doing my research, checking out the charts (which I still have no idea how it works) and concluded that only 3 REITS deserved my attention. They were CapitaMall Trust ("CMT"), CapitaCommercial Trust ("CCT") and MCT. However, I could not buy CMT and CCT due to company rules thus I was left with MCT.

3 Reasons I love MCT

1. Good mix of retail and office generating properties which means that any downside in rents would be less of an impact.
2. Strategic locations which sees high footfall (Retail) and easy accessibility (Office) which are key factors to tenants
3. Pretty decent and frequent dividend payouts for the past few years

Overall, I was looking for capital gains (due to my limited paltry holdings) rather than dividend payouts (works if you have hundreds of thousands) thus I'm happy to report that I'm up 21%! In the near future, I believe that there is potential but limited upside in terms of the stock price rallying beyond it's current price of 1.465. I had passed my target price of 1.50 a few days back but decided to hold on as I believe that it could rise above 1.50 next year.  Mid term, I intend to either hold it for the long term or dispose it so that I can reinvest it in another stock.

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