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 $1,100/month.



Thursday, May 21, 2015

Analysis of Rickmer Maritime Trust

Current Price on 17th May 2015 = $0.275
  • Yield = 10.73%  
  • Price-to-book Ratio = 0.387
  • Assets per unit = $1.403
  • Debt per unit = $0.693 (including current liabilities)
  • Gearing = 49.7%
Rickmer Maritime Trust has fallen to $0.275 which somehow caught my attention and thus I write this blog on it. It look promising but you have to see the history.

Yield is at a high of 10.73% which seems good. Moreover, if you are an investor and you participated in their DRP, you would have gotten units which are priced at 10% discount, thus pushing the yield higher at 11+%. Its price-to-book ratio is super low at 0.387 although I wonder when they revalue their ships. Gearing is still dropping and currently at 49.7%.

Two things caught my eyes in their presentation. Firstly is the drop in their average charter rate which means their revenue will drop. Secondly, is the rise in average charter rate in general. Thus, the two lines are currently closing on each other. This means the next few quarters are going to be interesting as it is going to reflect the exact situation of the trusts and whether it can be sustained.

Just looking and see whether there is a chance to turn around. If there is, I will enter and wait for the turn around to reap the rewards. 11% yield seem attractive. 

Monday, May 18, 2015

Fraser Centrepoint Bonds Offering... My Analysis on other blog

Hi everyone,

Please click on to another blog of mine where I look at bonds and the recent offering. Enjoy


Follow up from "Thank You Readers..."

Hi readers,

Another word of thanks to my readers who have come forward to advise on the risky move that I have made. I have since made adjustments to my portfolio.

I have sold Accordia Golf Trust and Croesus Retail Trust and use it to pay off the loan I got. Thus this is the current portfolio I have.

Global Investment Limited => 595,411 shares worth $88,000
Viva Industrial Trust => 60,000 shares worth $49,200
Others shares worth $3,000
Cash => $20,000
No loan :-)

I am opening a YieldMax Account with UOB KH so will wait for it to be open before making the next move.

Thursday, May 14, 2015

Analysis of Croesus Retail Trust

Current Price on 30th Apr 2015 = $0.94
  • Yield = 8.85%  
  • Price-to-book Ratio = 1.138
  • Assets per unit = $2.028
  • Debt per unit = $1.202 (including current liabilities)
  • Gearing = 59.3%
I have recently made purchases for Croesus Retail Trust (& Accordia Golf Trust) for these reasons.

Firstly, the yield is high at 8.85%. With its current acquisitions, I expect the yield to improve. The only concern is that Japanese Yen is falling due to the country's Quantitative Easing policy. The price-to-book ratio is quite high though at 1.138 but I am expecting a revaluation upside as their valuation is undemanding compared to recent transactions.

Gearing is at an unhealthy range of 59.3% but with the current QE in place, there will be a lot of cheap Japanese Yen around so interest rates will continue to be low. Moreover, I am expecting a round of equity fund raising which I favour as I have a chance to buy at a cheap price.

I am vested with 56,000 shares which I bought at $0.945. Will continue to look closely at this and the general Japan Economy.

Monday, May 11, 2015

Thank you readers...

Firstly, I want to thank all readers who read my post on decision to take more risk where I mention that I am taking 6.5% loan through margin account. Two things have transpired over this week.

1) Have I taken too much risk? Well to me, it is still worth it as I am expecting 0% capital appreciation over this period and to gain a regular income over this. I have even clarified with the broker on this issues. But there are readers who said that I have not followed my investment criteria. They are right. I took on more risks actually in exchange of higher yield. Thus, my margin of safety actually is much lower. Something which I got to think about.

2) One reader pointed to me UOB KH YieldMax Account. I went to the website and found that it is the exact account that I needed. Moreover, the interest is very low at 3.5%. I should have done my research well and not rush into implementing this plan.

Thus, I will be doing the messy business of open the UOB KH YieldMax Account as quickly as possible and transferring the holdings (including having to sell and re-buy if necessary and incur cost) as quickly as possible.

Thank you for all your contributions. Sometimes it is painful to hear them but I know you all meant well. :-)

Thursday, May 7, 2015

Analysis of Sabana REIT

Current Price on 30th Apr 2015 = $0.865
  • Yield = 8.23%  
  • Price-to-book Ratio = 0.816
  • Assets per unit = $1.76
  • Debt per unit = $0.699 (including current liabilities)
  • Gearing = 39.7%
Sabana REIT caught my eye when they deliver their results. Not very stellar but a lot of important information.

Firstly, it is their expiry of master lease of most of their remaining master-leased properties. It contributes about half of their income. Thus, I will look at their worse-case scenario. If all converted to multi-tenanted and their occupancy drops to 75%, I am predicting a 15% drop in their yield which will translate to about 7.00% yield. However, I don't think it will go that low. Maybe a 10% drop will be more realistic (translate to a yield of 7.41%) Valuation should also drop but I am not very sure how much. I am assuming that it remains the same.

With a current yield of 8.23% (predict to drop to 7.41%) and a price-to-book ratio of 0.816, the yield is quite comparable other industrial REITs. Moreover, they actually have the potential to be better than the scenario which I have painted. And there is room for leasing and every additional lease is yield-accretive. (Although they have not progress much)

It looks like this is going to be the next troubled REIT, which is not exactly a bad thing as the trading price will be depressed as well, presenting an opportunity (a bargain). If the price goes down further, I may make my move to purchase.