Added Suntec REIT to Portfolio

Investor Monkey - Looking for Ideas

Have added Suntec REIT (T82U.SI)into my portfolio at S$1.595, bringing my total invested amount to S$8,160.00.

Targetting to build up my portfolio of shares on the sector to REITs mainly to collect distributions that were issued by them on a quarterly basis, so that the dividends I collect will be spread throughout the year. These dividends will be part of the passive income that I will be building to attain the financial freedom.

Reasons for Buying Suntec REIT
Although Suntec REIT has been giving lesser distributions in the recent quarters compared to its highest of 2.977 Singapore cents in 2Q 2009. I felt that they could have done better since they were able to deliver a DPU of 2.228 Singapore cents in 2Q 2013, despite the closure of a large part of the mall for the Asset Enhancement Initiative (AEI).

Phase 2 is expected to complete in Q4 2013 while phase 3 is scheduled to complete Q4 2014 and with the completion of the phases, Suntec REIT should be able to increase their DPU.

Furthermore, with the Net Asset Valuation (NAV) at around S$2.06, higher than the market price of the REIT, making it more attractive since the NAV value is the estimate of the intrinsic value of the REIT.

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