While they haven’t explicitly stated that they will do a REIT, their announcement this morning stated

As part of its 2016 plan, Big C is also considering monetization options of part of its real estate, in particular the creation of a REIT composed mostly of its shopping centers, while continuing to fully consolidate their results. Big C owns and operates 174 shopping centers for about 800,000 m2 in rental area located in prime areas across the country. This project will facilitate Big C’s development on its attractive market and enable to create value for its shareholders. “

So what? 

Well it looks like BIGC has admitted that store expansion is limited, they already consider Thailand to be a developed retail market and thus the only way they can continue to demonstrate growth as a public company is to monetise assets.

Where should you look if you want hints on valuation?

Tesco launched a property fund years ago that is mainly on leasehold assets, so I’d suggest to use that as a quick and dirty comp

Source: BIGC 

  1. Hi Pon.

    I am interested in REITS, and are there any that have caught your interest and what is your impression of IMPACT? Is it too early in the REITS cycle to be interested in them?

    • Hi Tony,

      I honestly rarely care for REITS given I prefer the cap gain’s awarded by stock picking. I’ll start adding monthly REIT/prop funds #’s next year given that some (such as yourself) do look it.

  2. Hi Pon.

    I have been away, and have just returned so sorry for the late post. I buy REITS for the diverseness they bring to my dividend growth portfolio. Thanks for adding them.

    I have bought a load of ADVANC and INTUCH shares today. Are you still positive on them?

    • Well ADVANC has already come out saying that they’ll maintain their dividend payout ratio. So I think we’re looking at a blue chip that is paying 9% in dividends this year.
      JAS – a useless competitor that has a magical foreign partner that hasn’t appeared yet
      TRUE – It is what it is.
      DTAC – Patiently waiting for the next round of bidding in 3 years

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