Welcome

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 $1,160/month.

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Wednesday, November 26, 2014

Changes to my Portfolio (Selling AIMSAMP Industrial Trust and Buying Viva Industrial Trust)

Just to share with you some of the changes that I have made over the past week.

I have sold 20,000 shares of AIMSAMP Industrial REIT at $1.445 per share last week. Well, after I have sold it, it has moved up to $1.46 which means I have earned about $300 lesser. Haiz... Was waiting for it to move up but did not manage to wait until then. But it is still good as I have earned a capital appreciation of about $4,000. To me, this is always a bonus.

Using this amount of money (about $29,000), I have moved it into Viva Industrial Trust, buying 36,000 shares at $0.80 each. From my earlier post, they have just acquired two properties which will increase their yield to 9.44%, something which I like. Moreover, they have quietly announced that they will be doing AEI on their Technopark@Chai Chee which is currently their worst performing asset. With the reconfiguration of "white space", they are expecting the asset value and yield returns to move up. While we won't be enjoying the yield upside because of the income support system, what's more important here is the increase in NAV. However, there is no details as of now so not very sure what is the impact.

With the reconfiguration, here is my portfolio.

AIMSAMP Industrial Trust - 20703 shares + 780 scrip dividend worth $31,000
Global Investment Limited - 563078 shares worth $79,957
Viva Industrial Trust - 36,000 shares worth $28,800
Sabana REIT - 1,000 shares worth $970
IREIT Global - 1,000 shares worth $890

Yield = 8.835%
Monthly income = $1,160

Total Assets = $222,085
Total Liabilities = $46,490
NAV = $175,595
Market Value = $141,644 (excluding CPF Investment)
Market-to-NAV = 0.8068

Secured NAV = $102,527 (72% of market value)


Thursday, November 20, 2014

OCBC 360 Account - 3.05% p.a.

http://www.ocbc.com.sg/personal-banking/accounts/360-account.html

I know that this is weird to show in this blog but I think I have to because it is such a great opportunity. I have opened this account and did all they need me to do for the past few months to earn the 3.05%. The results were amazing. There were months where I earn $18 interest just for deposits in that month.

To me, it is really a lot considering that I have been researching on how to have high interest in investments and now we have this account to earn so much interest which is risk-free. $18 per month equates to about $240 per year. Not bad actually.

Highly recommended.

Monday, November 17, 2014

Keppel Unit Secures Cornerstone Investors for IPO - WSJ - WSJ

Keppel Unit Secures Cornerstone Investors for IPO - WSJ - WSJ



Looks promising...

Analysis of Viva Industrial Trust

Current Price on 11th Nov 2014 = $0.795
  • Current Yield = 8.49%  
  • Price-to-book Ratio = 1.059
  • Asset Per Unit = $1.430
  • Liabilities per unit = $0.680
  • Gearing = 47.5%
Viva Industrial Trust has a few announcements which are important. The most important one is that they have announced their acquisition of two buildings which gives a 10.4% yield. For a small REIT like Viva Industrial Trust, this is a big acquisition. It will improve their yield to 9.49% which is very high, about 2% higher than the closest rival.

Their assets and liabilities went up as well, putting pressure on their gearing which is increased to 47.5%. Their price-to-book ratio still stands at an unattractive 1.059 which means we are paying 5.9% premium to their valuation. One more point to note is that their credit rating is BB+ which is not investment grade.

I remember AIMSAMP Industrial Trust was in this state as well with credit rating below investment grade. It took them a long time to achieve upgrade which substantially improves their trading price. For Viva Industrial Trust, I believe the same will happen. The question is whether you are willing to ride this journey with them.

9.49% from May 2015 onwards is very attractive (Considering that they will complete their purchase in Q4). I am thinking of switching half my holdings from AIMSAMP to Viva Industrial Trust.

Wednesday, November 12, 2014

Keppel data-centre trust set for IPO, News, News, AsiaOne Business News

Keppel data-centre trust set for IPO, News, News, AsiaOne Business News



Looks like there is another upcoming REIT which we can subscribe. Something new because it is a data centre REIT. Need to look at the statistics to determine whether it is good.

Monday, November 10, 2014

Analysis of Rickmer Maritime Trust

Current Price on 6th Nov 2014 = $0.29
  • Yield = 10.18%  
  • Price-to-book Ratio = 0.408
  • Assets per unit = $1.403
  • Debt per unit = $0.692 (including current liabilities)
  • Gearing = 49.4%

Rickmer Maritime Trust reported its results recently which gave us a good glimpse on their NAV. Yield remains the same at 10.18% which is very high.

They have registered a impairment charges of about $60 million which causes their NAV to drop by $0.04. This is about 7% of their NAV. With the expiry of their current high charter rates and there is no sign that it will recover to that rate, I think the valuation will continue to drop. This is a danger of this trust because we are not really sure how they get their NAV. (Unlike properties where it can be evaluated easily)

I am expecting more of this to happen which will cause pressure on its share price. Until they repay all their debts, I don't see why I should enter this counter again (after exiting earlier.)

Friday, November 7, 2014

Analysis of AIMSAMP Trust

Current Price on 6th Nov 2014 = $1.455
  • Current Yield = 7.62%  
  • Price-to-book Ratio = 0.953
  • Asset Per Unit = $2.334
  • Liabilities per unit = $0.807
  • Gearing = 34.6%

It has been almost two months since I posted. Had been busy with work so have not been monitoring closely.

AIMSAMP Trust has reported their results earlier which recorded an increase of almost 10% in its DPU. (2.77 cents per unit). Moreover, its NAV has also increased to $1.52 which is above its trading price.

Following all these, we have a price-to-book ratio of 0.953 which is a respectable ratio, a yield which is also strong at 7.62%. With the completion of their AEI, I believe the DPU will continue to increase.

There is a lot more properties which has AEI potential and it is increasingly behaving as a organic growth REIT. Their yield and NAV will continue to increase. The question is how fast or slow it is.

I still have quite a substantial holdings on this (40,000 shares & 11,000 in CPF). I have previously thought of selling it but since the increase in yield, I will need to think it through again.