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.

Thursday, May 2, 2019

REITS Symposium 2019

Just a bump to all who are still considering to go for the REIT Symposium 2019. Do sign up if you are seriously considering to earn a passive income.

I started with an annual passive income of $400 only in 2007 and now I am enjoying an annual passive income of $45,000 ($3,800 a month). It is as good as there is another person working for the family.

Here is the link if you need it. And when you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them.

$15 option – http://www.shareinvestor.com//sg/events/signup?id=1393

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394



Saturday, April 13, 2019

*** REITs Symposium Advert***

***This is a sponsored post. And this is probably the first time you see such a post here :-)***

I would like to share an upcoming REITs Symposium where we can get to learn and know more about REITs directly from the people in the industry.

Date:18th May 2019, Saturday

Time: 9am to 6pm

Venue: Sands Expo and Convention Centre, Level 4, Roselle Simpor Ballroom

Price: As below.

Just some more info for you to know what to expect.

- Guest of Honor will be Mr Loh Boon Chye, CEO of SGX

- More than 75% SREITs will be present

- Face time with the REITs managers

- Panel discussions where attendees can post their questions online

- A feature which focused on REITs 101 – educating beginner investors to kick start investing in this asset class such as how to evaluate the metrics of a REIT.

BONUS: When you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them. And it is only for the first 30 sign-ups.

So here is the link and the price.

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394



Enjoy.

Thursday, April 11, 2019

Analysis of Dasin Retail Trust - Almost unchanged, Just collect dividends

Current Price on 7th Apr 2019 = $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%
Three months have passed since I look at Dasin Retail Trust and here we see it again.

The price has not changed much but I have collected a dividend of $4,600 which is very good for me. With the current yield of 8.46%, I am expecting to collect another $4,200 in August/September period which is fantastic for me. It's price-to-book ratio also suggest that we are buying at a big discount. Gearing is at a high of 48% so need to watch out.

With the current Hyflux problems, I have come to realize that the valuation can be misleading and unreal since Hyflux gives such a big writedown in their assets. I am wondering how valuation companies do their valuation and whether it is reliable. So far, I have relied on them to make my investment decisions but I am starting to question.

Nevertheless, I am still holding on to 120,000 shares which I am thankful for as I got it at a relatively cheap price. Will continue to hold on.

Before you go, I would like to share an upcoming REITs Symposium where we can get to learn and know more about REITs directly from the people in the industry.

Date:18th May 2019, Saturday
Time: 9am to 6pm
Venue: Sands Expo and Convention Centre, Level 4, Roselle Simpor Ballroom
Price: As below.

BONUS: When you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them. And it is only for the first 30 sign-ups.

So here is the link and the price.

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394


Thursday, April 4, 2019

Analysis of Far East Hospitality Trust - Is the price too high?

Current Price on 26th March 2019 = $0.675
  • Yield = 5.93%  
  • Price-to-book Ratio = 0.775
  • Assets per unit = $1.417
  • Debt per unit = $0.546 (including current liabilities and perp securities)
  • Gearing = 38.5%
  • Secured NAV = $0.871 (129% of trading price)
Far East Hospitality Trust has risen by quite a bit this year at $0.675. I am vested with about 104,000 shares (I took scrip dividend) worth about $70,000. Let's take a look at the statistics.

With a yield of 5.93%, it seems very low now compared even to its peers like CDL H-Trust, OUE Hospitality Trust, Fraser Hospitality Trust etc. But its price-to-book ratio is at 0.775 which means we are buying at a 23% discount to its valuation. It is ranked the best among its peers. Gearing is at 38.5% and because all its debts are unsecured, we have a secured NAV of $0.871 which is 129% of its trading price.

I do find it very strange because it is the lowest yielding hospitality REIT and yet its price is moving up. Frankly speaking, it no longers fits into my criteria of at least 8% yield by a large margin and I have been pondering for a while whether to sell it off. What is holding me back is its price-to-book ratio and its secured NAV. Its secured NAV is the highest among the REITs in SGX.

There are a lot of reports which upgrade its target price to 70 cents and 75 cents which is very high. Probably its stability contributes to its current trading yield but I am not so sure. Looking around to see whether there are better REITs which offer higher yield with similar metrics.

Tuesday, April 2, 2019

*Sponsored Post* - REITs Symposium by Shareinvestor

***This is a sponsored post. And this is probably the first time you see such a post here :-)***

I would like to share an upcoming REITs Symposium where we can get to learn and know more about REITs directly from the people in the industry.

Date:18th May 2019, Saturday

Time: 9am to 6pm

Venue: Sands Expo and Convention Centre, Level 4, Roselle Simpor Ballroom

Price: As below.

Just some more info for you to know what to expect.

- Guest of Honor will be Mr Loh Boon Chye, CEO of SGX

- More than 75% SREITs will be present

- Face time with the REITs managers

- Panel discussions where attendees can post their questions online

- A feature which focused on REITs 101 – educating beginner investors to kick start investing in this asset class such as how to evaluate the metrics of a REIT.

BONUS: When you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them. And it is only for the first 30 sign-ups.

So here is the link and the price.

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394

Enjoy.

Thursday, March 28, 2019

Analysis of Sasseur REIT - Recent Buy brought dividends

Current Price on 20th March 2019 = $0.72
  • Yield = 9.84%  
  • Price-to-book Ratio = 0.797
  • Assets per unit = $1.488
  • Debt per unit = $0.584 (including current liabilities and perp securities)
  • Gearing = 39.3%
Sasseur REIT is my latest buy (which I have posted earlier.) During that time, I figured out that it is worth a buy and I have to admit not buying my usual amount of shares. Nevertheless, still grateful for the increase in price and the dividends collected. Let's take a look at the statistics.

With 9.84%, it is the one with the highest yield currently. With its price-to-book ratio at 0.797, we are buying at about 20% discount to their valuation which is also attractive. Gearing is at a safe close to 40% but need to watch this.

REITs with China properties are giving high yield with discounts to NAV for us to invest and Sasseur REIT has really performed well since this year. I am holding on to 60,000 shares but will be holding on long term as long as they are able to provide me with a steady stream of income.

Thursday, March 21, 2019

Analysis of Global Investment Limited

Current Price on 20th March 2019 = $0.128
  • Yield = 7.81%  
  • Price-to-book Ratio = 0.658
  • Assets per unit = $0.196
  • Debt per unit = $0.001 (including current liabilities and perp securities)
  • Gearing = 0.4%
  • Secured NAV = $0.196 (104% of trading price)
Global Investment Limited has been trading quite steadily at around $0.128. I am vested with over 500,000 shares so naturally I will watch it closely. Let's take a look at the statistics.

Yield is currently at 7.81% which is decent actually although there are REITs which gives higher yield. This is of course pales from the earlier days where it gives 11% yield. It's price-to-book ratio is 0.658 which means we are getting at 35% discount to its net asset value. Because it has no debt, all their assets are considered secured.

I have read public reports that says that China debts are defaulting by quite a lot so their exposure to China domestic debt is quite a concern even though it is rated at AAA. They have $55 million invested in it which is about 15% of their NAV. Therefore if it is wiped out, its NAV will reduce by 15% only.

They have also commence share buy back which shows that the management thinks that their shares are very much undervalued that buying back shares is considered a good investment. This is good for shareholders because our holdings will increase because the denominator aka total number of shares are decreasing.

Overall, I think it is quite stable and fairly valued. I will be just holding it to collect dividends which they would generate every half a year.