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 $900/month.



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Thursday, April 17, 2014

Updates on Current Holdings

Ever since the post in February, there are some updates on my portfolio with rights issue, purchases and scrip dividend.

1) I bought another 63,000 shares of Global Investment Limited at $0.16 just before it got ex-cd. With that, I got another 40,855 shares worth of scrip dividend. Overall, it either break even or got a small loss but I am not too worried yet.

2) I managed to get 6,019 worth of rights for AIMSAMP Industrial REIT at $1.08. It helps to lower my cost of investment and at the same time participate in its value-adding redevelopment plans.

Thus with that here are the statistics of my portfolio.

  • Current Yield = 7.76%  
  • Price-to-book Ratio = 0.810
  • Gearing = 25.59%
  • Secured NAV = 63%

Monday, April 14, 2014

Analysis of SPH REIT

Current Price on 9th April 2014 = $0.995
  • Current Yield = 5.59%  
  • Price-to-book Ratio = 1.104
  • Assets per unit = $1.265
  • Debt per unit = $0.363 (including current liabilities)
  • Gearing = 28.7%
  • Secured NAV = $0.228 (23%)

SPH REIT is by far one of the most resilient REIT that I have ever seen. Since selling my IPO share at $0.98, the lowest it gets is about $0.97 which is beyond my expectation. Moreover, it continually priced itself at a yield which is one of the lowest among the retail REITs. Its price-to-book ratio is still at a premium of 10%.

Although it is resilient, I am not too sure why it is resilient. Even CapitaMall experienced price fluctuation along with the market. With its statistics, I am not keen to invest in it. It may be safe and good, but the pricing is not right.

I am looking at other REITs to place some of my money in instead of this.

Thursday, April 10, 2014

Analysis of Global Investment Limited (Non-REIT)

Current Price on 9th April 2014 = $0.142
  • Current Yield = 10.56%  
  • Price-to-book Ratio = 0.628
  • Assets per unit = $0.236
  • Debt per unit = $0.010 (including current liabilities)
  • Gearing = 4%
  • Secured NAV = $0.164 (115%)

Global Investment Limited is one of my anchor investment with slightly more than 400,000 shares worth about $56,000. I chose to invest heavily in this because of its high yield of 10.56%, zero debt, very low price-to-book ratio (37% discount) and a high secured NAV which is 115% of its trading price.

In February, they announce their scrip dividend issue which I have participated. For a total of 363,737 shares, I have obtained about 40,855 shares worth of dividend. If I divide 40855 by 363737, it translates to a yield of 11.5% which is much higher than the current yield. Thus, it became more favourable to me as a long-term investor with compound interest.

I continue to look at this investment with great interest and it is still likely that I will continue to invest in it although I am also wary not to be overly invested in one counter.

Monday, February 3, 2014

Analysis of Mapletree Greater China Commercial Trust

Current Price on 24th January = $0.81
  • Current Yield = 7.50%  
  • Price-to-book Ratio = 0.854
  • Assets per unit = $1.704
  • Debt per unit = $0.754 (including current liabilities)
  • Gearing = 44%
  • Secured NAV = $0.949 (117%)

MGCCT has reported its results which to me is good. Yield is at a high of 7.50% which is one of the highest among the Office REITs and Retail REITs. 7.50% is also my "yellow" threshold which I will consider seriously if other factors are strong.

Price-to-Book ratio is also at 0.854. This means that if I buy at current price, I will be getting it at a 15% discount. As it uses unsecured loans, its secured NAV is 117% which is one of the highest in SREIT as well.

One worrying point is its gearing which is high at 44%. Considering that it has a debt rating and it is investment grade, I don't think we should be too worried about it.

I am vested with 6,000 shares which I got during its IPO. Still enjoying its dividend although I have lost in capital depreciation. I am still looking around shopping for REITs.

Monday, January 27, 2014

Analysis of Sabana REIT

Current Price on 24th January = $1.07
  • Current Yield = 8.19%  
  • Price-to-book Ratio = 0.977
  • Assets per unit = $1.791
  • Debt per unit = $0.696 (including current liabilities)
  • Gearing = 38.8%
  • Secured NAV = $0.257 (24%)

Sabana REIT has reported its results which shows some worrying signs. I am grateful that there are readers who have alerted me to this and this report just confirms that they are right. It is important that we learn from each other and share our thoughts.

With its report, current yield has dropped to 8.19% which is still at a high range. The reason is that their multi-tenanted properties have registered only about 78% occupancy which is very low compared to other REITs at this point. Its yield, however, is still at the high range. Probably it is a much more risker REIT so people demand higher yield.

Its price-to-book ratio is also back below 1, at 0.977. Moreover, it starts to have secured NAV which is currently at 24%. There are some good signs following some weakness in its share price.

According to its slides, there is another 20% of its tenants with contracts expiring this year. It does not seem to be a good sign, thus its yield may continue to drop. They are in for a rough ride and I am going to wait until they show signs of recovery before putting my money in.

Thursday, January 23, 2014

Analysis of First REIT

Current Price on 17th January = $1.045
  • Current Yield = 7.54%  
  • Price-to-book Ratio = 1.083
  • Assets per unit = $1.565
  • Debt per unit = $0.600 (including current liabilities)
  • Gearing = 38.4%

For a long time I have not checked on First REIT so with some exciting news, I have spent sometime looking at it. 

First REIT has reported a strong results with yield climbing back to 7.54%. It is so much better compared to earlier when its yield is hovering between 6 - 7%. Its price-to-book ratio, however, is still at a unattractive rate of 1.083. Considering that they were a discounted REIT and now there is a high level of confidence, they have done well. They do have some unencumbered properties but I have not spent time calculating it.

Looking at the pricing now, I don't think I will invest in this REIT because there are other REITs like OUE Hospitality Trust, SoilBuild Trust, AIMSAMP REIT which are offering the same yield. They may have their different risk profile but I think level of risk is about the same. I will be looking at the other results first.