The Motley Fool Singapore
Better Buy: CapitaLand Commercial Trust or Suntec Real Estate Investment Trust?
Office market rents in Singapore have been on the rise. That’s a growth opportunity for real estate investment trusts (REITs) such as Suntec Real Estate Investment Trust (SGX: T82U) and CapitaLand Commercial Trust (SGX: C61U). The two are among the largest commercial REITs listed in Singapore and have a line-up of some of the most recognised office buildings in Singapore. While I can’t tell for certain which REIT will provide investors with higher returns, we can examine crucial aspects of their business to see which one you would be more comfortable adding to your portfolio. Financial health The first aspect we will compare is the financial health of the REITs. In particular, I will take a look at the debt-to-asset ratio which tells me how much debt headroom the two REITs have. Sun