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 $3,300/month.

Tuesday, February 14, 2017

Analysis of Soilbuild Business Space REIT

Current Price on 27th Jan 2017 = $0.64
  • Yield = 9.81%  
  • Price-to-book Ratio = 0.887
  • Assets per unit = $1.224
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 41.0%
  • Credit Rating = Baa3
Soilbuild Business Space Trust has published their results which caught my attention. Also because recently I haven't been looking at it and when I glance their results, I realize that I have missed this great opportunity. Let's take a look at the statistics.

With a yield of 9.81%, it is probably one of the highest yielding REIT in Singapore, probably the highest now among the industrial REITs. Sabana REIT, AIMSAMP Industrial REIT, Viva Industrial Trust has all risen or executed some rights issue. So now is this one. With a price-to-book ratio of 0.887, we are buying at a slight 11% discount, very similar to Viva Industrial Trust. More importantly, it has a credit rating of Baa3 which is considered investment grade and quite good.

Soilbuild Business Space Trust presents a very good opportunity for those who still does not have exposure to industrial REITs in Singapore. For me, I am heavily subscribed to AIMSAMP Industrial Trust, Sabana REIT and Viva Industrial Trust. If I were to invest in it, I may need to unload AIMSAMP to invest in them.

Thursday, February 9, 2017

Analysis of Fraser Commercial Trust

Current Price on 27th Jan 2017 = $1.26
  • Yield = 7.97%  
  • Price-to-book Ratio = 0.808
  • Assets per unit = $2.614
  • Debt per unit = $1.054 (including current liabilities)
  • Gearing = 40.3%
  • Secured NAV = $1.56 (123% of trading price)
  • Credit Rating = Baa2
Fraser Commercial Trust was one of the past anchor investments but I have since sold it quite a few years back. Now it is back in the spotlight for the reason that it is one of the highest yielding office REIT with properties in Singapore, competing directly with OUE Commerical Trust which has quite similar statistics.

Yield is at 7.97% which is quite high and there is room for improvement because it is still developing a hotel segment which has no yield. Moreover, it is trading at a 20% discount to NAV which means we are (again) buying at a discount which is good for us. Gearing is at a healthy 40.3%. What is more important is that its secured NAV is $1.56 which is at 123% of the trading price. This means that in the very bad scenario, we should be getting $1.56 back which is still higher than the trading price. With a credit rating of Baa2 which is investment grade and quite good, I don't see why they should be trading at this price.

I am vested with OUE Commerical Trust (30,300 shares) and I am thinking of switching it to Fraser Commercial Trust. With some cash, I might put in more.

Monday, February 6, 2017

Analysis of Suntec REIT

Current Price on 27th Jan 2017 = $1.725
  • Yield = 6.02%  
  • Price-to-book Ratio = 0.781
  • Assets per unit = $3.589
  • Debt per unit = $1.381 (including current liabilities)
  • Gearing = 38.5%
Suntec REIT published their results before CNY which has always puzzled me. Let's take a look at the statistics.

Yield has been stable at 6.02% which is still quite ok (but not to my standard) but their price-to-book ratio is at 0.781 which means that they are trading at a 22% discount to their valuation price. This is something which makes it attractive. Gearing is at a healthy 38.5%.

I am puzzled that they are always trading at a discount despite being one of the largest REIT in Singapore and holding on to assets which are located at prime land. Someone has told me before that valuation is quite influenced by the REIT manager but this is the only indicator that we can rely on to decide whether we are buying on a cheap. Of course, there are other business trust which has proven that NAV is not really reliable but here we are talking about properties which is relatively quite stable.

Nevertheless, Suntec REIT's yield is way too low for me and it is very unlikely that I will invest in it. Unless there are some other ways to improve the yield at my end.

Friday, February 3, 2017

Updates of my current investments

Hi everyone,

I just want to update another investments that I have made.

Ascendas Hospitality Trust 
I have bought 80,000 shares of Ascendas Hospitality Trust at $0.73. I have a chance to buy it at a cheaper price but I didn't so was quite upset with myself. Moreover, at this price, it may be a little bit on the high side. This is quite a surprise as well as I wasn't really considering this until I see their report.

Moving Forward
Moving forward, I am still looking at those counters which I have mentioned earlier with an addition of Fraser Commercial Trust. Likely I will do one more trade soon to complete my investment plan. Moreover, I will be transferring some cash to my Maybank KE Margin account to lower my interest payments. With this, I have increased my monthly returns potentially to about $3,300 which is used to supplement my household income. It is just like renting out another property. :-) Or having an additional virtual person to work for us.

Tuesday, January 31, 2017

Analysis of Ascendas Hospitality Trust - Wow! What a results!

Current Price on 26th Jan 2017 = $0.72
  • Yield = 9.11%  
  • Price-to-book Ratio = 0.850
  • Assets per unit = $1.436
  • Debt per unit = $0.589 (including current liabilities)
  • Gearing = 41.0%
Ascendas Hospitality Trust recently announced their results which caught my interest and it came out of the blue because I haven't been monitoring this for a while. Here is the statistics.

Yield is at 9.11% which means they are now the highest yielding hospitality trust. Previously I was looking at Far East Hospitality Trust and Fraser Hospitality Trust so here is a third one which I am looking at now. Their price-to-book ratio is 0.85. It means we are buying at 15% discount to NAV. Quite good enough even though there are other better ones. Gearing is at 41.0% which include other liabilities so it looks ok (not fantastic)

It caught my eye because it is getting more and more difficult to find REITs which are yielding at above 9% which are non-industrial. It would become important to me to diversify and with this set of data, I am buying some of the shares in the very near near future.

Friday, January 27, 2017

Updates on my Current Investments

Hi everyone,

Recently I have been quiet because of the recent Sabana REIT Rights Application which I am focusing on, placing some of my money there and waited for the rights issue to be completed. Here is the updates.

Sabana REIT
After they have ex-rights, I have actually bought another 60,000 shares of Sabana REIT at $0.345. Although their rights issue doesn't seem to favour unitholders, I also believed that it has been priced in, so I bought it and I am glad that the price went back up by a bit, reducing my paper losses earlier.

I have managed to obtain 32,055 shares through excess rights which is quite a blessing because it would mean that I am sitting on another paper gain of about $3,000. Overall, I am quite satisfied with the outcome and will monitor their progress. I am currently holding on to 235,500 shares of Sabana REIT which means it has become an anchor investment of my portfolio.

Moving Forward
Moving forward, I still have some cash with me and I am looking at a few counters. I am looking at increasing my holdings in Global Investment Limited. I am still looking at Far East Hospitality Trust due to its deep discount to NAV. Another which I am looking at is Accordia Golf Trust although I already have a stake in it aka 105,000 shares.

Ok that's all for now. Happy Lunar New Year to all readers. I know that there is a lot of request which I am currently unable to fulfill but I will try my best.

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.