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 $1,700/month.

Thursday, January 12, 2017

Top 100 Investment Blogs & Websites For Investors | Investor Blogs

Top 100 Investment Blogs & Websites For Investors | Investor Blogs:



'via Blog this'





This comes as a surprise that my blog is awarded as one of the top 100 investment blogs by Feedspot.com Mine is ranked 72 which is definitely an achievement. And I am very humbled by this. Thank you very much.

Friday, January 6, 2017

Just joined InvestingNote - A nice way to learn from fellow investors

Hi everyone,

I have signed up for this InvestingNote where I can learn from fellow investors who will comment on my portfolio and some of my analysis as well. It is just a platform just like my blog but with some nice features there. I do encourage you to sign up as well and to enjoy the sharing culture and learning culture that we should have as a humble community.

Here it is.  http://bit.ly/sreitsb 

Monday, January 2, 2017

Shopback - Cashback for online shopping at Taobao, Lazada, Groupon etc

Hi everyone,

Happy new year in 2017. Just to share with you about Shopback which has saved me some money while doing online shopping. It gives additional cashback apart from the credit cards shopping (Standard Chartered Singpost Card)

For a start, you can claim $5 to sign up and another $5 for your first purchase. A little gift from me to you to start the year. Enjoy.

https://www.shopback.sg/?raf=cZefDy


Wednesday, December 28, 2016

Updates on my Investments

Hi everyone,

I am updating my investments on this blog which is quite sad for me because of one of the counters. Here it is.

Sabana REIT
I increased my shareholdings just before their announcement of their rights issue which is quite a surprise. I increased it from 41,000 to 101,000 at $0.515 which means currently I am staring at $10,000 paper loss. I am very sad because of the timing which is so bad which resulted in this paper loss here. Rights issue will help me with about $5,000 in paper gain but it is still not enough. Will be subscribing to it and applying for excess to minimise losses.

Accordia Golf Trust
I restarted my investments in Accordia Golf Trust, putting in 100,000 shares at average price of $0.6275 as their dividend yield is still relatively high at close to 10% and trading at discount to NAV. It is going to add to my passive income.

Overall
Well, since I have excess cash now and investing in them, here is the portfolio which I am having and the passive income which I am getting for me and my family.


This is another way of looking at my portfolio.

Total Assets held by my REITs and Business Trusts = $856,000
Total Liabilities held by my REITs, Business Trusts and my own Margin Account = $371,000

Net Asset Value = $487,000
Trading Value = $320,000

Passive Income = $2,800 per month
% Yield = 10.9%

It took years to grow into this and I am really thankful that it is now a significant source of income to my family.



Friday, December 23, 2016

Rights Issue of Sabana REIT

Current Price on 22th December 2016 = $0.44
  • Yield = 10.91%  
  • Price-to-book Ratio = 0.498
  • Assets per unit = $1.528
  • Debt per unit = $0.644 (including current liabilities)
  • Gearing = 42.1%
Sabana REIT has announced a series of property acquisition and also a rights issue at a deep discount of $0.258 which is extremely unusual. Moreover, the pro forma data of distribution and NAV is not clearly shown which sort of shows that they know that the share price will drop when they announce these buys. And I don't think their biggest shareholder is going to participate in this rights exercise which is very very unusual. I have made an estimate of what will happen after today's last day of cum-rights trading.

Ex-Rights Price = $0.37
  • Yield = 9.12%  
  • Price-to-book Ratio = 0.532
  • Assets per unit = $1.149
  • Debt per unit = $0.453 (including current liabilities)
  • Gearing = 39.4%

I remember this scenario happens as well during 2008 where credit dried up due to US crisis and a number of REITs needed to raise cash at a deep discount. We haven't really seen one yet this year or period of time until this week. Looking at the price, I guess the price just continue to drop until a normalised rate of 9+% yield which is their current price. Thus, for those who hold on to shares (including myself) suffered a paper loss of about 12% which is quite hurting. Nevertheless, the drop in price has already happened and we have to look forward from here.

With this statistics, the REIT may just as well look slightly stronger due to lower gearing. Price-to-book ratio is still at a deep discount of 47% which is still quite good. Yield is at 9.12% which still looks great although it can be greater.

To be frank, I increased my shareholdings from 41,000 to 101,000 just before their announcement so I am staring blankly at a paper loss of about $7,000 which is huge for me. Nevertheless, I am still taking a long term view of high yield REITs trading at deep discounts to NAV as my strategy and waiting for a turnaround. (I have the holding power anyway). It may take two years to recover but I am willing to wait.

Monday, November 28, 2016

Analysis of Frasers Hospitality Trusts - Direct Competition with Far East Hospitality Trust

Current Price on 22th November 2016 = $0.65
  • Yield = 8.02%  
  • Price-to-book Ratio = 0.809
  • Assets per unit = $1.28
  • Debt per unit = $0.477 (including current liabilities)
  • Gearing = 37.3%
Frasers Hospitality Trust recently has a drop in their price which resulted in an increase in their yield. Well, it is starting to fit my indicators so let's take a look at the statistics.

Yield is at 8.02% which is the highest among hospitality trust. However, their price-to-book ratio is 0.809. It means we are buying at 20% discount to NAV. Not very cheap though because there are other hospitality trusts which are cheaper i.e. Far East Hospitality Trust. With a gearing of 37.3%, it looks quite safe.

This is one with an international portfolio so it depends on the world economy as a whole (in contrast to Far East Hospitality Trust). With the yield at a good place, it is worth considering although Far East Hospitality Trust still seems better.

Thursday, November 24, 2016

Analysis of Global Investment Limited

Current Price on 21st Nov 2016 = $0.133
  • Yield = 11.28%  
  • Price-to-book Ratio = 0.68
  • Assets per unit = $0.204
  • Debt per unit = $0.008 (including current liabilities)
  • Gearing = 4.1%
  • Secured NAV = $0.196 (147% of trading price)
Global Investment Limited has always been in my radar but it just happen that I did not blog about it. Converting all my dividends into shares increased my holdings to 737,000 shares which is huge and it is currently worth about $100,000. Let's take a look at the statistics.

The yield continues to be high at 11.28% which is very good for me. Considering that its price has not dropped much, this is ideal as a high yield savings account. Moreover, with price-to-book ratio at 0.68, we are buying at 32% discount. They only have to generate a equity yield of 7% to help us enjoy a at least 10% yield. With little debt, there is no risk of company failing.

With close to $100,000 invested in this, I am getting $11,280 in dividends per year which is about $1,000 per month. With some cash coming in, I am still thinking of increasing my investments in this. Aiming to increase to one million shares at this point.