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 $3,800/month.

Monday, August 7, 2017

Analysis of Dasin Retail Trust - A hidden diamond just uncovered.

Current Price on 4th August 2017 = $0.81
  • Yield = 8.40%  
  • Price-to-book Ratio = 0.487
  • Assets per unit = $2.971
  • Debt per unit = $1.308 (including current liabilities)
  • Gearing = 44.0%
Some of my readers are asking about Dasin Retail Trust which I researched on it. The results were fantastic. I wonder why I did not research on this previously despite it staring at me. Let's take a look at the statistics.

With a yield of 8.40%, it is one of the highest yielding REIT in SGX now especially in the retail sector. Moreover, they are trading at a whopping 52% discount to NAV. It means that we are buying it at at least half price. Do note that all their properties are based in China. But we do have other China-based REITs like Mapletree Greater China Trust and CapitaRetail China Trust which are trading at good value so it shouldn't be a problem here. Their Gearing is at a high of 44.0% but not so much of a worry as of now.

I am considering to switch some low yielding REITs or Trusts into this now I know that there is such an option. Moreover, I have queued and purchased 14,400 shares at $0.80 last week. No matter what, I will be queuing to buy more this week, hopefully to increase my shareholdings as much as I would like.

Friday, August 4, 2017

Analysis of EC World REIT - A hidden REIT with good statistics.

Current Price on 27th July 2017 = $0.785
  • Yield = 7.85%  
  • Price-to-book Ratio = 0.876
  • Assets per unit = $1.854
  • Debt per unit = $0.958 (including current liabilities)
  • Gearing = 51.7%
EC World REIT caught my eye because of their statistics and also the recent run-up of all other REITs and Business Trust. Let's take a look at the statistics.

With a yield of 7.85%, it is probably one of the highest yielding REIT in SGX now. Moreover, they are trading at a 12% discount to NAV which is good. Do note that all their properties are based in China doing e-commerce which looks like a boom now for them where online retailing is involved. Their Gearing is at a high of 51.7% and this is actually worrying.

This could be better than Sabana REIT that I bought recently and is able to challenge Viva Industrial Trust, Soilbuild REIT etc. It is not easy to find such a combination now i.e. high yield with trading at discount to NAV. I will consider moving some funds into this.

Tuesday, August 1, 2017

Analysis of Sabana REIT - Now what?

Current Price on 27th July 2017 = $0.46
  • Yield = 7.12%  
  • Price-to-book Ratio = 0.792
  • Assets per unit = $0.944
  • Debt per unit = $0.369 (including current liabilities)
  • Gearing = 39.1%
  • Secured NAV = $0.315 (69% of trading price)
Sabana REIT has delivered a set of results which is not really good because their DPU continues to go down. It has an impact on their share price which is at $0.46. It has actually recovered from my earlier post of $0.425 which could have been an entry price. I delayed my decision and paid the price. Let's take a look at the statistics.

With a yield of 7.12%, it is not exciting. There are others like Soilbuild Business Space REIT and Viva Industrial Trust which are giving a higher yield. However, they are still trading at a discount to NAV. It is about 20% discount which is quite rare in the current investing climate. Well, there are cheaper ones around like Dasin Retail Trust, Accordia Golf Trust which are overseas, and Far East Hospitality Trust, Keppel REIT whose yield is actually lower. Gearing is at a good 39.1% but I expect this to go lower.

I am vested with 106,500 shares worth close to $50,000 and I am holding on to the long haul simply because they are trading at a discount to NAV. Valuation may be dropping but I don't think it will go very low. With the strategic review still in motion, they might just spring a surprise.

Friday, July 28, 2017

Analysis of Viva Industrial Trust - A premium REIT by now.

Current Price on 27th Jul 2017 = $0.93
  • Yield = 7.97%  
  • Price-to-book Ratio = 1.177
  • Assets per unit = $1.370
  • Debt per unit = $0.580 (including current liabilities)
  • Gearing = 42.3%
  • Occupancy = 90.6%
Viva Industrial Trust has published their results which shows their capability to generate high yield despite having low asset valuation. Their price has been increasing for a while already so have to look at the statistics again.

Yield is currently at 7.97%. It is not as high as what I hope for but still one of the highest in the market. Soilbuild Business Space Trust is giving a higher yield as of now. Moreover, they are trading at a 17.7% premium which is very unfavourable. They are trading close to the league of the big boys like Ascendas REIT. Occupancy is still at 90.6% which is ok compared to market vacancy.

Viva Industrial Trust has given me a lot, in terms of dividends and capital gains over the years since I bought them sometime in 2015 and subscribe to their rights issue as well, giving me about 87,100 shares. It looks like it is time to take a look at other counters although I have to admit that there are not many opportunities out there by now.

Monday, July 17, 2017

Updating my Current Portfolio

Hi everyone,

I have made some changes to rebalance my portfolio and achieving higher yield.

OUE Commercial Trust

Last week I sold off my holdings of 30,300 shares at $0.715. Well, their yield is at a low of 6% so I was thinking of getting something which has a higher yield. 6% is really too low for me and I think I can get something of higher yield and risk.

Sabana REIT

With this sale, I actually waited for a while before I purchase 100,000 shares of Sabana REIT. I should have purchased earlier at $0.45 and actually have to spend additional $1,000 just to purchase them (buying at $0.46). After their EGM, things are more settled and I think their valuation is quite attractive. Their yield is also a good 7.7% despite lots of negative reports.

With all these changes, here is my current portfolio.


Tuesday, July 11, 2017

Netlink Trust IPO pricing at $0.81

IPO Price on 10th July 2017 = $0.81
  • Yield = 5.73% (2018)  
  • Price-to-book Ratio = 0.938
  • Assets per unit = $1.16
  • Debt per unit = $0.296 (including current liabilities)
  • Gearing = 25.6%
This is an update after they have announced their IPO price which is really bad news for them. They have just priced it at $0.81 which is near the bottom end of the range that they have given. On paper, the yield and price-to-book ratio is ok at 5.73% and getting it at 6% discount. However, it has shown that there is really no demand for its units and they have to lower the price to attract investors.

I am not applying for this IPO because I am quite sure that it will fall below $0.81 once it is listed.

Wednesday, June 28, 2017

Netlink NBN Trust IPO - Looking more like a bond

IPO Price on 27th June 2017 = $0.93
  • Yield = 4.99% (2018)  
  • Price-to-book Ratio = 1.077
  • Assets per unit = $1.16
  • Debt per unit = $0.296 (including current liabilities)
  • Gearing = 25.6%
Netlink NBN Trust is launching its IPO next month which is long awaited for all Singaporeans. And I really hope that all Singaporeans have a chance to get something i.e. to share Singapore's assets. Let's take a look at the statistics first.

With a yield of 4.99%, it is hardly appealing. Probably one of the lowest yielding business trust that you can find in Singapore. Moreover, you are buying at a premium of 7.7% which is again hardly appealing. Gearing is low at 25.6% which is the only positive.

One positive is that this business is so stable that you won't be getting any lower.They are a monopoly in this business. But their pricing is regulated so they would have trouble growing their business even though they mention that they have a 5.50% growth which is really not sustainable.

Thus, I would think that it functions more like a perpetual securities (bonds with no maturity) where their price will move in a very narrow band (+- 5%) and giving out regular coupons. If we compare it with the bonds that are on the market now, it will seem one of the better ones. Only Hyflux or Aspial bonds are comparable.

If they are not pricing it at the top end of the range i.e. $0.93, it means that the demand is not high and the price will definitely not go beyond $0.93. If they priced it at the lowest end, i.e. $0.80, it means that there is really no demand and price will go lower than $0.80 and that will be disastrous for those who applied for its IPO. If I were to guess the pricing, I would prefer it to be $0.86 (their NAV price) or slightly lower.

I won't be applying for this because I know definitely I will have a chance to buy it at IPO price once it starts trading.