Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $1,055/month.



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Thursday, September 18, 2014

Analysis of Croesus Retail Trust

Current Price on 10th Sept 2014 = $0.945
  • Current Yield = 8.25%  
  • Price-to-book Ratio = 1.034
  • Asset Per Unit = $2.182
  • Liabilities per unit = $1.244
  • Gearing = 57.0%

Croesus Retail Trust is one on my watchlist although I have recently sold my holdings on it. Plus its recent acquisition and private placement, it is worth another look.

Its current yield is 8.25% which is one of the best yields that we can get. Moreover, its price-to-book ratio is 1.034 which means we are paying a premium of 3.4%. Compared to Saizen REIT which is trading at 22% discount and even Accordia Golf Trust which is trading at 7% discount, it does seem expensive. Nevertheless, the high yield justifies the price. Its gearing looks very threatening at 57% which I thought was too high. It also mean that the risk is high as well.

The yield really look attractive, something which I was considering (thus this post). But after looking at other data, I am just glad that I have sold my holdings earlier.

Monday, September 15, 2014

Analysis of OUE Commercial Trust

Current Price on 10th Sept = $0.80
  • Current Yield = 7.15%  
  • Price-to-book Ratio = 0.754
  • Assets per unit = $1.926
  • Debt per unit = $0.865 (including current liabilities)
  • Gearing = 44.9%

OUE Commercial Trust is one of the REIT which I am watching closely. The rise of one of my key assets (AIMSAMP REIT) has prompt me to monetize it and change it to something else. And this is one of those which I am considering.

Yield is at 7.15% which is very stable given that there is income support scheme. I have checked and the income support would last for four years which is very long and provided stability. Another advantage which you hardly see today is its price-to-book ratio which is at 0.754 and it is probably the best in the market. With these two criteria in place, this is a strong candidate.

OUE Bayfront has a valuation of $0.75 while Lippo Plaza has a valuation of $0.31. Thus, with a trading price of $0.80, I believe I will be paying $0.675 for OUE Bayfront (which is comparable to other office REITs which has a price-to-book ratio of about 0.90) and $0.125 for Lippo Plaza. This means I am getting Lippo Plaza at a steep discount, if I buy. For thoughts.

As the amount is fairly large (about $50,000), I need to consider more carefully before I make a move.

Friday, September 12, 2014

Analysis of Global Investment Limited (Non-REIT)

Current Price on 8th Sept 2014 = $0.142
  • Current Yield = 10.56%  
  • Price-to-book Ratio = 0.654
  • Assets per unit = $0.219
  • Debt per unit = $0.010 (including current liabilities)
  • Gearing = 4%
  • Secured NAV = $0.151 (105%)

Global Investment Limited is one of my anchor investment with slightly more than 563,000 shares worth almost $80,000. I have continued to increase my investment lately with a purchase of 135,000 shares at $0.14.

In August, they announce their scrip dividend issue which I have participated. For a total of 404,000 shares, I have obtained about 23,000 shares worth of dividend. If I divide 23000 by 404000, it translates to a yield of 11.3% which is much higher than the current yield. To me, it seems more like a deposit account with 11.3% interest paid semi-annually especially when its capital appreciation/depreciation is about 0%.

In the end, I am still looking at this counter for stable and predictable returns which suits my appetite and risk.

Tuesday, September 9, 2014

Updates on Current Holdings

Ever since I posted the changes to my current holdings, I have transferred and made a purchase which is a surprise even to myself.

With Viva Industrial Trust creeping up and beyond my price expectations, Accordia Golf Trust's unexpected and fast rebound, I have actually made a purchase on Global Investment Limited even though I already have about $57,000 worth of investments in it already. The reason is that it is giving more than 10% dividend return with a discount to NAV. Moreover, its NAV has been creeping up which is perfectly a good sign. 

It is better than OUE Commercial Trust in terms of NAV, better than Accordian Golf Trust and Viva Industrial Trust in terms of yield. The only issue is that it has zero capital appreciation which is fine to me as that is my expectations anyway.

I have also sold Mapletree Greater Commercial Trust for personal reasons (not investment reasons). It means I needed the money for some use. I will put it back but not so soon.

Here is the portfolio that I have. (Including those which I bought using CPF which is 11,000 shares of AIMSAMP REIT)

Yield = 8.063%
Monthly income = $1,055

Total Assets = $218,403
Total Liabilities = $34,888
NAV = $183,515
Market Value = $157,097
Market-to-NAV = 0.856

Secured NAV = $107,341 (68% of market value)

Monday, September 8, 2014

PetroChina Asset Seeks IPO - WSJ

PetroChina Asset Seeks IPO - WSJ

One more business trust awaiting listing and this could be a chance to chase yield play which conservative investors like me wanted. Waiting for more news on this.

Monday, August 25, 2014

Updates on Current Holdings

In the month of August, I have made some trades which I thought was right to rebalance my portfolio. Here are the details.

I have sold my holdings on Croesus Retail Trust, yielding a capital return of about $2,000. One of the reasons why I sell it is because of its premium Price-to-book ratio. Also the yield is about 7%. Of course, later then I realize that I made a mistake in my calculations and the yield is actually 7.41%. Nevertheless, selling 19,000 shares at $1 is quite a good deal already although it continues to go up and there is a chance of revaluation.

I got a lot of IPO on IREIT Global at $0.88. And I am glad that it is holding up. Haven't done my analysis after IPO yet but seems only ok at this point.

I am looking at entering either Viva Industrial Trust which gives me a yield of 8.5% or OUE Commercial Trust which is trading at about 20 - 25% discount to NAV. Viva Industrial Trust can give its high yield is because of income support which will expire. However, if they are able to fill up their vacant spaces, their yield will hold up. OUE Commercial Trust can only rely on its revisions on their existing rents and may need to acquire to grow. This is on top of their income support which they currently have. The good news is that they are stable with strong sponsor.

Another candidate is Accordia Golf Trust which has fallen to a pretty low level. Quite difficult to decide from either of the three. I am trying out with Viva Industrial Trust first.

Monday, August 11, 2014

IPO Analysis of IREIT Global

IPO Price = $0.88
  • Yield = 7.60%  (2014) 8.00% (2015)
  • Price-to-book Ratio = 1.142
  • Assets per unit = $1.159
  • Debt per unit = $0.388 (including current liabilities)
  • Gearing = 33.5%

This is long overdue. I hope that I am not too late. One more REIT on IPO and this time round, it is on German properties. I think this is very interesting because it would be the first pure Europe REIT. Let's look at the statistics

Yield is at a strong 7.60% in 2014 and 8.00% in 2015 which is quite high, second only to Viva Industrial Trust. However, its price-to-book ratio is also at the high of 1.142 which means we are paying almost 15% premium for the property. I wonder how the valuation is done and if it is valued so lowly, what does it show on the economy in Germany.

We will take the statistics at face value and analyze. Same to Viva Industrial Trust, high yield and high price-to-book ratio. I will choose Viva Industrial Trust over IREIT Global for higher yield and lower price-to-book ratio, especially when it has recently XD-ed and price has dropped to an acceptable level.

Statistics-wise, it is not favourable but I am applying for 4 lots to gain exposure and experience on European REITs.