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, January 14, 2019

Analysis of Sabana REIT - It has to get better

Current Price on 13th Jan 2019 = $0.405
  • Yield = 9.38%  
  • Price-to-book Ratio = 0.689
  • Assets per unit = $0.962
  • Debt per unit = $0.374 (including current liabilities)
  • Gearing = 38.9%
  • Secured NAV = $0.255 (68% of trading price
Sabana REIT is one of my key investments despite all the negative media reports which they attract. It helps to push the price down and lowered my entry price which I thought was good. Here is the analysis.

With a yield of 9.38%, it is one of the highest yielding REIT in SGX. Probably Sasseur REIT has a higher yield. LippoMalls Indonesia REIT's yield has dropped with the recent rally back to their previous price and is now lower than Sabana REIT. Their price-to-book ratio is 0.689 which means we are buying at more than 30% discount to NAV. Gearing is at a pretty healthy state of 38.9%.

With the recent change in CEO and him addressing the media, getting the lease in so that our revenue improves, I just thought that it could only get better. With higher yield, their price should go up to a level for small REITs which is around 8.5%.

I am holding on to about 160,000 shares, giving me a good yield of about $500 per month (aka $1500 per quarter). Not bad. It is substantial enough to pay some of my bills. With the recent outlook, there is room to hold on to these shares.

Tuesday, January 8, 2019

Analysis of Dasin Retail Trust - Quietly secure

Current Price on 28th Dec 2018 = $0.85
  • Yield = 8.61%  
  • Price-to-book Ratio = 0.544
  • Assets per unit = $3.005
  • Debt per unit = $1.443 (including current liabilities)
  • Gearing = 48.0%
Dasin Retail Trust is one of my anchor investments in my portfolio and it is probably the only one which has managed to maintain their price level despite the broad-base drop in the market. Let's take a look at the statistics.

The statistics has not changed much with a 8.61% yield, one of the higher ones in the market. And its price to book ratio is 0.544 which means we can buy at a 46% discount to NAV, also one of the most attractive. Gearing is at a high of 48%. Their yield and discount to NAV is probably one of the most attractive ones in the market.

I already has 120,000 shares earning me $732 per month. Just looking to enjoy the dividends since I already hold so many shares.

Friday, January 4, 2019

Analysis of Hutchison Port Holdings Trust - Would it be the same as APTT?

Current Price on 28th Dec 2018 = S$0.335
  • Yield = 8.77%  
  • Price-to-book Ratio = 0.434
  • Assets per unit = $2.138
  • Debt per unit = $1.366 (including current liabilities and non-controlling interest)
  • Gearing = 63.9%
While reading and refamiliarising myself with HPH Trust, I realize that there is a substantial non-controlling interest appearing as equity in the balance sheet which unitholders don't own. Thus, it affected the price-to-book ratio which I have always been using to calculate so now I am including it as liabilities for ease of comparison for people like us. Here are the statistics.

With 8.77%, it is yielding high although I think it is not high enough considering that it is a port trust rather than a real estate investment trust. Its price-to-book ratio is rerated to be 0.434 which means wer are buying at less than half the price even after re-rating. Including all other equities as liabilities in the balance sheet, we see a gearing of 63.9% which is extremely high. This is probably the reason why it is trading at a depressed price.

With the crash of APTT (which wiped out my earnings), many people are saying that HPH Trust is next. I won't say so. The reason is that Port assets are still valuable, visible and more stable compared to pay tv business where it face fierce competition and probably will die down. Of course, I realize it too late and got burnt earlier. But I don't think it is the case here. Port business is still relatively stable with high requirements. I think the problem is earnings margin which is very low. A small change in percentage of business is likely to have a large impact of its earnings. This one, we need to watch out.

I am holding on to 200,000 shares which gives me a yield of $500 per month. However, unless there is an upturn in the business, I don't think there are any room for upside. Nevertheless, the yield is high enough for me to hold on for long term.

Wednesday, January 2, 2019

Analysis of ESR REIT - Transiting into the league of big boys.

Current Price on 28th Dec 2018 = $0.505
  • Yield = 8.37%  
  • Price-to-book Ratio = 0.985
  • Assets per unit = $0.956
  • Debt per unit = $0.443 (including current liabilities)
  • Gearing = 46.4%
  • Secured NAV = $0.513 (101% of trading price)
ESR-REIT is currently my biggest holdings with about 329,000 shares worth about $166,000. It is earning me a monthly dividend of $1,100 which helps to pay a lot of my bills. This is because of the merger earlier with Viva Industrial Trust where most of my holdings in Viva Industrial Trust is converted to ESR REIT (and coupled with my original holdings). It looks a lot so may pare down but let's take a look at the statistics first.

With a yield of 8.37%, it is quite attractive. In fact, REITs with similar size (Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics Trust) are yielding at a range of 6-7%. Moreover, they are trading at a slight discount while its peers are trading at a premium of 20% on average. Thus, looks like when the synergies are completed, the market will realize its value of being among the big boys and its price should move upwards. A comparative price level should be about 60 cents which gives an upside of about 20%.

I am more concerned whether there are downsides which I still can't find any as of now so I am holding on to my shares at the moment. They are giving a nice dividend so no complaints about it. Maybe after the price increase then we look at offloading. Do note that it will take some time and I believe it is about a year for it to go up to 60 cents.

Thursday, December 27, 2018

Analysis of Global Investment Trust

Current Price on 28th Dec 2018 = $0.106
  • Yield = 9.43%  
  • Price-to-book Ratio = 0.526
  • Assets per unit = $0.204
  • Debt per unit = $0.003 (including current liabilities)
  • Gearing = 1.3%
  • Secured NAV = $0.201 (189% of trading price)
It has been a while since I blogged so I am trying to do catch up now. Here is an analysis of Global Investment Trust, one of my key investments (about 600,000 shares)

Global Investment Limited is yielding 9.43% which is high despite them cutting dividend to one cent per year. This is probably due to the recent drop in price which makes it attractive. Moreover, its price-to-book ratio is 0.526 which is almost about half price compared to their NAV. They have no debts so their assets are fully secured.

I have been looking at trying to see why their price dropped. And it is probably due to their investments in China Domestic Bonds this year which the market view negatively. They are rated AAA by their domestic rating agencies which means it is highly unlikely that it will default. The problem is reputation which the market questioned.

I have about 600,000 shares in this, giving me a decent yield and with such statistics which we have not seen in the recent years, there is a chance that I sell some of my other holdings to buy into this.

Saturday, December 15, 2018

It has been a while... My portfolio after the broad-based drop and a whammy from Asian Pay Television Trust.

It has been a while since I write a blog here and I must admit that I am too busy with my own things to continue to analyze and keep up with my investments. Thus, I was very late in realizing that the market and therefore my portfolio has fallen by quite a lot which emotionally I was very sad.

Moreover, I was hard hit by the sudden drop of Asian Pay Television Trust which has hit me really hard. Together with the broad-based correction of the market, the hard work that I have painstakingly built up, dividends and the profits were all returned back to the market. To think back, there were tell tale signs in the beginning but I have foolishly ignored them. Anyway, I have sold them, believing that it will not recover back to the previous levels based on current metrics.

One thing that I have learnt is that investing can't be passive as what I have always believed. When I am doing well is because of close monitoring, able to pick up signals early and act on them. It may not be a full-time job, but it is never passive. Thus, my lesson is that I need to be a lot more active, alert even in the midst of busyness, continue to update this blog which tracks how closely I am monitoring. (That's is how I check myself).

Anyway, this is my portfolio as of now. Not nice and pleasant to see if you compare it with my previous postings. But just thankful that not all is gone. Starting all over again, with a bit of caution, and a bit of fear.

Wednesday, July 18, 2018

Analysis of Dasin Retail Trust - An Anchor investment for me

Current Price on 17th Jul 2018 = $0.865

  • Yield = 8.46%  
  • Price-to-book Ratio = 0.554
  • Assets per unit = $3.005
  • Debt per unit = $1.443 (including current liabilities)
  • Gearing = 48.0%

Dasin Retail Trust is one of my closely-watched counter. It is also one of my anchor investments which I have gained much from it. I have recently purchased another 40,000 shares at $0.865 sometime last month. Let's take a look at the staitistics.

With the current yield of 8.64%, it is one of the highest yielding REIT in SGX. However, LippoMalls Retail Trust and Sasseur REIT are trading at a higher yield. What is attractive is that concurrently it is trading at price-to-book value of 0.554 which means we are buying at 45% discount to its valuation. This provides some form of margin of safety for investors. Gearing is also at a high of 48.0%.

With the recent purchase, I am vested with 120,000 shares, enjoying an annual dividend of $8,700 which probably can pay for my car instalment. :-) I am still holding on to it and enjoying it.