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.

Monday, September 26, 2016

Rights issue of Frasers Hospitality Trust - Aftermath

Current Price on 23rd September 2016 = $0.70
  • Yield = 7.45%  
  • Price-to-book Ratio = 0.872
  • Assets per unit = $1.286
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 39.0%
It has been a while since I posted an analysis. I guess the busyness has taken a toll on me. Will try to get the rhythm back. Here is the another analysis on FHT. Fraser Hospitality Trust has recently announced their rights issue. While I missed the earlier deadline, it is still worthwhile to look at it.

Yield is at a modest 7.45% which is quite comparable to its peers, especially after it dropped from the TERP price they published which is $0.745. Its price-to-book ratio is also at 0.872 which means we will be buying at 13% discount. Having said that, there are other hospitality trusts which are trading at cheaper valuations like Far East Hospitality Trust.

With all these analysis, I think it is still not attractive enough to be considered, considering that other hospitality trusts are trading at the same yield with lower price-to-book ratio. I still won't consider this in my portfolio. 

Monday, August 15, 2016

Analysis of Soilbuild Business Trust - Gaining Attention

Current Price on 14th August 2016 = $0.665
  • Yield = 9.41%  
  • Price-to-book Ratio = 0.842
  • Assets per unit = $1.305
  • Debt per unit = $0.515 (including current liabilities)
  • Gearing = 39.4%
Soilbuild Business Trust recently caught my attention because of its pricing. It now ranks close to Sabana REIT and Viva Industrial Trust in terms of yield and price-to-book ratio. Let's look at the statistics.

The yield is currently at 9.41% which is quite attractive. It is also quite comparable to Sabana REIT (at 9.55%) and Viva Industrial Trust (at 9.52%). Its price-to-NAV ratio is at 0.842 which means you are buying at 15% discount to their valuation. While it is not really comparable to Sabana, it is higher than Viva Industrial Trust. Gearing is at 39.4% which is quite manageable.

On my hand, I have some investments in AIMSAMP Industrial Trust which has recently moved up in price. Although it is good, the statistics may not be favourable anymore so I am looking at something else to change it to and this is definitely one of my options which I am evaluating now. I already have exposure in Sabana and Viva so may want to think of diversifying. However, I am heavily exposed to industrial REITs so this would also be one of the considerations as well.

Monday, August 1, 2016

Analysis of Cache Logistics Trust

Current Price on 25th July 2016 = $0.885
  • Yield = 8.99%  
  • Price-to-book Ratio = 1.016
  • Assets per unit = $1.476
  • Debt per unit = $0.605 (including current liabilities)
  • Gearing = 39.8%
Cache Logistics Trust caught my initial attention because of its high yield. However, I have been putting back any investments pending a further look at their statistics.

Yield is at a high of 8.99%. However, there are other better ones like Sabana REIT and SoilBuild REIT which yield above 9%. Its price-to-book ratio is 1.016 which means we are buying at a premium and this is not attractive at all. There are others i.e. Cambridge Industrial Trust, Viva Industrial Trust which are trading below their NAV. Gearing is at a high of 39.8%.

Considering all the statistics, I won't be investing in this even though their yield is high. There are other REITs which I will consider and likely to buy.

Thursday, July 28, 2016

Analysis of Fraser Commercial Trust

Current Price on 25th July 2016 = $1.345
  • Yield = 7.17%  
  • Price-to-book Ratio = 0.881
  • Assets per unit = $2.563
  • Debt per unit = $1.037 (including current liabilities)
  • Gearing = 40.5%
  • Secured NAV = $1.526 (113% of trading price)
Fraser Commercial Trust has recently published their report which also include an upgrade in their credit rating and this will lead to lower borrowing cost and further confidence. Let's take a look at the statistics.

Yield is at a respectable 7.17% which is in my holding zone aka if I have I will hold but if I don't have, I won't buy. However, their price-to-book ratio shows a 12% discount to valuation which is favourable. What is most attractive is that its secured NAV is 113% of its trading price. This is on the assumption that it liquidates it now or someone buys over at NAV.

Fraser Commercial Trust was once my anchor investments but no longer now. Their yield is not high enough to be attractive for my portfolio. I will still monitor and wait for the price to come down.

Monday, July 25, 2016

Updates on Current Holdings - Repositioning for higher yield.

Hi everyone,

Here are some of the updates that I have for my portfolio.

Ascendas Hospitality Trust

With the recent rise in prices, I felt that Ascendas Hospitality Trust is no longer attractive, yielding at around 7.5%. So I sold it for $0.715. The price now is still around $0.72 currently. With that, I was able to make a small profit considering interest, dividends and capital appreciation. Not a lot though.

Sabana REIT

I bought another 20,000 shares of Sabana REIT at $0.535 which is giving me a yield of 9% and with a price-to-NAV at a low of 0.616 which means I am buying at 38% discount. They just announced their results which is a drop in their yield to 9%. Well, their margin of safety which is the price-to-NAV is still good so I entered again. With this entry, it becomes one of my major investments.

Saturday, July 23, 2016

Get $10 Off + Extra cash rebates when you buy online on Qoo10, Taobao, Lazada

Hi everyone,

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A dollar saved is a dollar earned. Every dollar counts towards our overall investment return so enjoy your savings and returns.

Wednesday, July 20, 2016

Analysis of Global Investment Limited

Current Price on 19th July 2016 = $0.137
  • Yield = 10.95%  
  • Price-to-book Ratio = 0.723
  • Assets per unit = $0.203
  • Debt per unit = $0.014 (including current liabilities)
  • Gearing = 6.8%
  • Secured NAV = $0.19 (138% 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 696,000 shares which is huge and it is currently worth $95,000. Let's take a look at the statistics.

The yield continues to be high at 10.95% even though it is no longer the highest. Asian Pay Television Trust is yielding at about 12% and some "safer" REITs based in Singapore i.e. Sabana REIT and LMIR is also yielding close to 10%. Because of that, it sorts of loses some shine. Price-to-book ratio is still at an attractive 0.723 which means that we are buying at 27% discount. Just a note that previously it was better.

Currently, there are heavy-weight on bonds which helps to secure their yield. In their report, it is yielding at close to 7% but if we factor in discounts since we are buying at a discount, it is close to 9%.

They are going to announce their results and distribute their dividend soon. Well, I have said before that this is a 10% savings account which still holds today as their price hasn't really moved much for the longest period of time. I will just wait and enjoy the dividend coming in.