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, 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.

Thursday, June 30, 2016

Updates to Current Holdings

Hi everyone,

I realize that I haven't been updating you about changes to my portfolio which has seen quite a bit of activity actually. So here it is.

Manulife US REIT

I have subscribed to the IPO at US$0.83 which troubled me because I felt that I was misled by the pricing being priced at the top end of the range. I have sold it since and made a loss of about $600. It was a costly mistake to me as I also face foreign exchange losses. Lessons come at a cost. I just hope that it is not too high.

OUE Commercial REIT and OUE Hospitality Trust

I sold OUE Hospitality Trust because the statistics is no longer attractive although it is still around 8% but compared to other hospitality trust, some others are better. I sold it at $0.695 sometime earlier so I still earn about $600. With the money, I went into OUE Commercial REIT at $0.64 because of the confidence that the sponsor gave which lead it to subscribe to more shares at a higher price. Looks like it is a good buy as of now.

Sabana REIT

I bought 20,000 shares of Sabana REIT at $0.515 which is giving me a yield of more than 10% and with a price-to-NAV at a low of 0.582 which means I am buying at 42% discount. Some people will ask why should I enter a REIT that is currently going through challenging times. Well, if the challenging times is priced in, then it is a fair price isn't it. It is a risk. That's why the yield is high. If it is able to ride through, what do you think the price will go?

Other Expenses

I am shifting house soon so I needed to do renovation and also buying some new furniture. So I reserve some cash which will be used for this purpose. However, after thinking about it, we have decided to take a renovation loan and 0% interest instalment and use this money to into investments. Thus, you will be seeing two additional liabilities shown in the portfolio. As for the real cash, I will be depositing it into the investment account soon to pare down some of my margin debt and some as cash reserve. So here is the portfolio. :-)