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.

Monday, April 9, 2018

Analysis of Asian Pay Television Trust - Extreme High Yield

Current Price on 5th April 2018 = $0.515
  • Yield = 12.62%  
  • Price-to-book Ratio = 0.622
  • Assets per unit = $1.943
  • Debt per unit = $1.116 (including current liabilities)
  • Gearing = 57.4%
Asian Pay Television Trust recently release an investor update presentation slides which prompt me to review my investments in APTT. Here are the statistics.

With 12.62% yield, this is probably the highest yieldings trust you can find in the market. It is at least three percentage points higher than the next highest which is Dasin Retail Trust. However, it comes with a price and risk. Its gearing is at 57.4% which is extremely high, although it is trading at 38% discount to NAV. It seems to be trading at a level which is similar to levels during a crisis, although they are not going through one.

In my opinion, the high yield comes with a high risk and their assets are not brick and mortar like REITs which means it is not as reliable as valuing properties. However, I will still be holding on to my 200,000 shares, enjoying the dividends even though it has fallen 8 cents since my last analysis.

Monday, April 2, 2018

Updates on my Portfolio - Still creeping up in terms of passive income.

Hi everyone,

Here are some of my updates on my portfolio since July.

ESR REIT

Much earlier this year aka in January, I have increased my holdings in ESR REIT by 55,000 shares. Thus, I was holding to about 113,000 shares. Then, I have subscribed to their rights issue and applied for excess rights issue which I am surprised that I am being allocated to all that I have applied. Thus, it seems that I am overweight on ESR REIT with 190,000 shares with an annual yield of $7,600 (about $635 monthly)

Global Investment Limited

Not much movement for this except that I have subscribed to dividends in scrip which pushes my holdings to 1,100,000 shares, giving a yield of $13,362 (about $1,113 monthly)

With that, here is my updated portfolio as of 29th March 2018, giving me $4,900 passive income monthly which is fantastic. It is like having another person working at home. (There are some purchases which I have made with 0% credit card instalment and I have placed them here as well.)




Monday, March 26, 2018

IPO Analysis of Sasseur REIT

IPO Price on 25th March 2018 = $0.80
  • Yield = 7.50%  
  • Price-to-book Ratio = 1.028
  • Assets per unit = $1.273
  • Debt per unit = $0.494 (including current liabilities)
  • Gearing = 38.8%
Sasseur REIT has launch their IPO last Wednesday night which is a boost to our REIT IPO scene. However, we still need to look at the statistics and comparison to current REITs in the market.

With a 7.5% yield, it looks quite good. Comparable REITs include BHG Retail REIT which is currently yielding at 7.2%, CapitaRetail China REIT which is yielding at 6%. However, they are offering at a premium of 2.8% which is not very attractive considering that BHG Retail REIT is trading at a discount to NAV. One other comparison is Dasin Retail Trust which is currently yielding at 8.9% and trading at a steep discount to NAV. Well, I was expecting them to offer IPO at a discount to NAV to secure a stronger margin to safety. However, it is not really the case.

I saw a news article which shows that they initially marketed at 7% but finally push to 7.5%. It reflects on the demand for higher yield for REITs with properties based in China. It also tells me that it is not likely that they will trade a 7% yield. Therefore, I am not applying to its IPO because I should be able to get it at the same price once it starts trading. I am not really interested anyway.

Monday, March 19, 2018

Analysis of Global Investment Limited - Still stable and great passive income

Current Price on 13th March 2018 = $0.145
  • Yield = 8.28%  
  • Price-to-book Ratio = 0.72
  • Assets per unit = $0.204
  • Debt per unit = $0.003 (including current liabilities)
  • Gearing = 1.3%
  • Secured NAV = $0.201 (138% of trading price)
Global Investment Limited has recently gave a report and an announcement. Their distribution has remained at 0.6 cents per half year and they have just XDed as well. Here is the analysis.

With a yield of 8.28%, it is still one of the highest yielding investment holding companies which I rank it with REITs and business trusts. Their NAV increased to $0.201 which is 138% of their trading price. It is also their secured NAV. It means we are buying at 28% discount and the value is almost secured (from retail investor's perspective.)

Well, ever since they announce that their distribution is lowering, their price has maintained. In fact, three months ago when I wrote about it, the price is the same. It shows that this is very stable and it gives me a good return of 8%p.a. and it has been like this for a long time.

I am holding on over 1 million shares, gaining about $6,600 worth of dividends in this round. I am converting them into shares (aka taking scrip dividend) so it works like compounding interest. And it has been like this ever since I invested in it about four to five years ago. Only when I need the money then I sell and withdraw which so far has not happened.

Monday, March 12, 2018

Analysis of Dasin Retail Trust - Still attractive

Current Price on 12th Mar 2018 = $0.90
  • Yield = 8.71%  
  • Price-to-book Ratio = 0.718
  • Assets per unit = $2.916
  • Debt per unit = $1.409 (including current liabilities)
  • Gearing = 48.3%
Dasin Retail Trust is one of my closely-watched counter. Ever since my previous purchase of 80,000 shares, the price has gone up and I have received dividends from them. With the recent results, it still looks attractive.

With the current yield of 8.71%, it is one of the highest yielding REIT in SGX although it functions as a Trust. Moreover, it is trading at price-to-book value of 0.596 which means we are buying at 40% discount to its valuation which is very attractive. The drawback is that its properties are in China which means we are exposed to China risk. Gearing is also at a high of 48.3%.

Their properties are currently at 100% occupancy which means if they were to grow the trust, they need to buy more properties. To buy more properties, they will probably need to issue new units which is not favourable unless they are able to buy at steep discounts to valuation, like what they did previously.

I am vested with 80,000 shares, enjoying the upcoming dividend of $3,300. And I am holding on to this. In fact, I am considering to buy more.

Tuesday, February 13, 2018

Analysis of Sabana REIT - Depressed Price.

Current Price on 8th Feb 2018 = $0.395
  • Yield = 8.51%  
  • Price-to-book Ratio = 0.718
  • Assets per unit = $0.917
  • Debt per unit = $0.374 (including current liabilities)
  • Gearing = 40.8%
  • Secured NAV = $0.255 (69% of trading price)
Sabana REIT has recently delivered a set of results which I thought was a small improvement from previous quarters. Moreover, the recent sell-down gives us an opportunity to enter. Let's take a look at the statistics.

Despite the recent reports about weak management, their yield is currently at 8.51% which is very high compared to other REITs. Moreover, the price-to-book ratio is at 0.718 which means we are buying at close to 30% discount. Gearing is at 40.8% which is close to 45%.

Discount-to-NAV has featured strongly recently in my analysis because it provides a lot of margin to safety aka it won't drop as much and it will eventually rise. With a 30% discount and all properties based in Singapore, I believe this is a rare opportunity.

Although there are a lot of negativity about this REIT, I believed that it has been priced in. With high yield and trading at a discount to NAV, I believe this is a time to buy. The question is whether we have the ability to hold until it recovers.

Friday, February 9, 2018

Analysis of Ascendas Hospitality Trust

Current Price on 8th Feb 2018 = $0.86
  • Yield = 6.21%  
  • Price-to-book Ratio = 0.894
  • Assets per unit = $1.564
  • Debt per unit = $0.602 (including current liabilities and perpetual securities)
  • Gearing = 38.5%
Ascendas Hospitality Trust released both its results and their sale of China properties at a premium which are both good news. Moreover, the recent correction has given a chance to enter. But let's take a look at the statistics first.

Current yield is at 6.21% which is quite good among the hospitality trusts but low compared to other REITs. Their price-to-book ratio is 0.894 which means we are buying at 10% discount, taking into account the sale of the properties in China. Gearing is at a healthy 38.5%.

I am vested in Far East Hospitality Trust and their yield is getting very low due to recent surge in price. However, I don't think the price is attractive enough to make the switch. Will monitor closely on this once-loved trust.