Highly anticipated “Avengers: Endgame” movie is opening in the box office this week! For those who are not familiar with The Avengers, they are a team of Superheroes that aims to protect the Earth (Google them!).
The concept of forming a team of Superheroes is very similar to investing. In investing, you also assemble your own portfolio, albeit with fundamentally strong stocks, for the ultimate goal of growing your wealth. So, why not borrow the idea of forming Superhero teams to building your own investment portfolio?
Investors Takeaway: Which SG Stock Deserves To Be Part Of “The Avengers”?
- Thor: Ascendas REIT
Ascendas REIT (A-REIT) is the largest industrial REIT and second largest REIT by market cap. It is no surprise that we are going attribute A-REIT the title of Thor – arguably the most powerful Avenger.
Tilting Towards High-value Exposure
Over the years, A-REIT has been increasing its exposure towards high-value manufacturing activities and non-manufacturing activities. Today, the Business & Science Park and High-Specifications industrial buildings and data centres make up 54 percent of A-REIT’s total net property income. With a pipeline of over $1 billion of Business & Science Park properties from its sponsor, A-REIT is set to offer investors more inorganic growth opportunities. The low debt headroom for A-REIT also gives the manager room to grow through acquisitions from non-sponsor properties.
Current share price $2.92
- Dr Strange: CapitaCom Trust
Turning back time, CapitaLand Commercial Trust (CapitaCom Trust) takes the honour of Singapore’s first and largest commercial REIT! We give the accolade of Dr. Strange to CapitaCom Trust.
CapitaCom Trust primarily invests in commercial purpose real estate that produces income. Currently, the Trust owns nine prime commercial properties in Singapore and one in Frankfurt, Germany.
Acqusitions & Improving Rental Outlook Driving CapitaCom Trust’s Value
The outlook for CapitaCom Trust has been increasingly favourable. Rental rates in the central business district has been growing and the upcoming expiring rents at CapitaCom Trust’s key properties will allow CapitaCom Trust to drive positive rental reversion. The dwindling supply of new office properties is also supporting upward trajectory in rents.
CapitaCom Trust’s Germany property Galileo was acquired in 2018 as its first foray into the overseas market. The foray will pave the way for more overseas investments to expand CapitaCom Trust’s portfolio.
Current share price $1.98
- Captain America: United Overseas Bank
United Overseas Bank (UOB) befits the role of Avenger’s Captain America, a figurehead for the team.
Highest Reserve Ratio Leaves Room For Higher Dividends
Since its founding, UOB has established itself into a regional player in Singapore, Malaysia, Indonesia, Thailand and China with its full suite of financial services. Among its banking peers, UOB has the highest fully loaded CET1 ratio, which gives it financial firepower to distribute higher dividends to shareholders. Like the other banks, rising interest rate will be a key driver to UOB’s net interest income. The rising interest rate environment will counter balance the slower pace of loan growth in 2019.
Current share price $26.63