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.

Thursday, March 21, 2019

Analysis of Global Investment Limited

Current Price on 20th March 2019 = $0.128
  • Yield = 7.81%  
  • Price-to-book Ratio = 0.658
  • Assets per unit = $0.196
  • Debt per unit = $0.001 (including current liabilities and perp securities)
  • Gearing = 0.4%
  • Secured NAV = $0.196 (104% of trading price)
Global Investment Limited has been trading quite steadily at around $0.128. I am vested with over 500,000 shares so naturally I will watch it closely. Let's take a look at the statistics.

Yield is currently at 7.81% which is decent actually although there are REITs which gives higher yield. This is of course pales from the earlier days where it gives 11% yield. It's price-to-book ratio is 0.658 which means we are getting at 35% discount to its net asset value. Because it has no debt, all their assets are considered secured.

I have read public reports that says that China debts are defaulting by quite a lot so their exposure to China domestic debt is quite a concern even though it is rated at AAA. They have $55 million invested in it which is about 15% of their NAV. Therefore if it is wiped out, its NAV will reduce by 15% only.

They have also commence share buy back which shows that the management thinks that their shares are very much undervalued that buying back shares is considered a good investment. This is good for shareholders because our holdings will increase because the denominator aka total number of shares are decreasing.

Overall, I think it is quite stable and fairly valued. I will be just holding it to collect dividends which they would generate every half a year.

Monday, February 4, 2019

Portfolio Updates - A good start to the year (consoling for me)

2019 started off very well as my portfolio recovered partially. Not in all but it has consoled my heart. Here are some of the updates.

Asian Pay Television Trust

I have a residual portfolio of 32,000 shares which I sold it earlier this year at $0.127. I know that it has recovered but I was looking at the statistics and I don't think there is any reason for it to go up. Thus, I sold it off and look for other opportunities.

Sasseur REIT

Looking at the statistics of Sasseur REIT and the recent drop in price, it has become attractive that I actually bought 60,000 shares at $0.64. Thus it is worth about $38,000. The reason is that it is trading at an attractive rate of 9.6% yield and it is also trading at the discount to its NAV. Currently, it is the highest yielding REIT which is still trading below NAV, especially most of other REITs have rallied and thus it is less attractive.

Overall Portfolio

With that, my current portfolio is giving me about $3,800 dividends every month on average. It seems that I have an additional person working and contributing to the family and it helps to pay off a lot of my bills. I have included my car loan and my renovation loan into the calculations which isn't necessary as it is not part of the investment portfolio. Just to include and see how it works out for me.

Lastly, have a blessed new year to all readers.

Tuesday, January 22, 2019

Analysis of Soilbuild REIT - A pleasant surprise

Current Price on 21st Jan 2019 = $0.605
  • Yield = 9.59%  
  • Price-to-book Ratio = 0.961
  • Assets per unit = $1.176
  • Debt per unit = $0.547 (including current liabilities and perp securities)
  • Gearing = 46.5%
  • Secured NAV = $0.629 (104% of trading price)
Soilbuild REIT has published their results which has given me pleasant surprises. Let's take a look at the statistics.

The yield has increased to 9.59% which is very high, probably the highest in the market right now. Moreover, their price to book ratio is at 0.961 which means we are still buying at a discount although it is a small one. Gearing is at a high of 46.5% only because I have placed perpetual securities under debts instead of equity. It is still high so the risk is there.

It is a pleasant surprise because it is not easy to get such a yield now with reasonable margin of safety aka trading at discount to NAV. I am already holding on to 100,000 shares here, getting myself $1,450 as dividends in this cycle. I think it is great and I am considering adding more into my current portfolio.

Monday, January 14, 2019

Analysis of Sabana REIT - It has to get better

Current Price on 13th Jan 2019 = $0.405
  • Yield = 9.38%  
  • Price-to-book Ratio = 0.689
  • Assets per unit = $0.962
  • Debt per unit = $0.374 (including current liabilities)
  • Gearing = 38.9%
  • Secured NAV = $0.255 (68% of trading price
Sabana REIT is one of my key investments despite all the negative media reports which they attract. It helps to push the price down and lowered my entry price which I thought was good. Here is the analysis.

With a yield of 9.38%, it is one of the highest yielding REIT in SGX. Probably Sasseur REIT has a higher yield. LippoMalls Indonesia REIT's yield has dropped with the recent rally back to their previous price and is now lower than Sabana REIT. Their price-to-book ratio is 0.689 which means we are buying at more than 30% discount to NAV. Gearing is at a pretty healthy state of 38.9%.

With the recent change in CEO and him addressing the media, getting the lease in so that our revenue improves, I just thought that it could only get better. With higher yield, their price should go up to a level for small REITs which is around 8.5%.

I am holding on to about 160,000 shares, giving me a good yield of about $500 per month (aka $1500 per quarter). Not bad. It is substantial enough to pay some of my bills. With the recent outlook, there is room to hold on to these shares.

Tuesday, January 8, 2019

Analysis of Dasin Retail Trust - Quietly secure

Current Price on 28th Dec 2018 = $0.85
  • Yield = 8.61%  
  • Price-to-book Ratio = 0.544
  • Assets per unit = $3.005
  • Debt per unit = $1.443 (including current liabilities)
  • Gearing = 48.0%
Dasin Retail Trust is one of my anchor investments in my portfolio and it is probably the only one which has managed to maintain their price level despite the broad-base drop in the market. Let's take a look at the statistics.

The statistics has not changed much with a 8.61% yield, one of the higher ones in the market. And its price to book ratio is 0.544 which means we can buy at a 46% discount to NAV, also one of the most attractive. Gearing is at a high of 48%. Their yield and discount to NAV is probably one of the most attractive ones in the market.

I already has 120,000 shares earning me $732 per month. Just looking to enjoy the dividends since I already hold so many shares.

Friday, January 4, 2019

Analysis of Hutchison Port Holdings Trust - Would it be the same as APTT?

Current Price on 28th Dec 2018 = S$0.335
  • Yield = 8.77%  
  • Price-to-book Ratio = 0.434
  • Assets per unit = $2.138
  • Debt per unit = $1.366 (including current liabilities and non-controlling interest)
  • Gearing = 63.9%
While reading and refamiliarising myself with HPH Trust, I realize that there is a substantial non-controlling interest appearing as equity in the balance sheet which unitholders don't own. Thus, it affected the price-to-book ratio which I have always been using to calculate so now I am including it as liabilities for ease of comparison for people like us. Here are the statistics.

With 8.77%, it is yielding high although I think it is not high enough considering that it is a port trust rather than a real estate investment trust. Its price-to-book ratio is rerated to be 0.434 which means wer are buying at less than half the price even after re-rating. Including all other equities as liabilities in the balance sheet, we see a gearing of 63.9% which is extremely high. This is probably the reason why it is trading at a depressed price.

With the crash of APTT (which wiped out my earnings), many people are saying that HPH Trust is next. I won't say so. The reason is that Port assets are still valuable, visible and more stable compared to pay tv business where it face fierce competition and probably will die down. Of course, I realize it too late and got burnt earlier. But I don't think it is the case here. Port business is still relatively stable with high requirements. I think the problem is earnings margin which is very low. A small change in percentage of business is likely to have a large impact of its earnings. This one, we need to watch out.

I am holding on to 200,000 shares which gives me a yield of $500 per month. However, unless there is an upturn in the business, I don't think there are any room for upside. Nevertheless, the yield is high enough for me to hold on for long term.

Wednesday, January 2, 2019

Analysis of ESR REIT - Transiting into the league of big boys.

Current Price on 28th Dec 2018 = $0.505
  • Yield = 8.37%  
  • Price-to-book Ratio = 0.985
  • Assets per unit = $0.956
  • Debt per unit = $0.443 (including current liabilities)
  • Gearing = 46.4%
  • Secured NAV = $0.513 (101% of trading price)
ESR-REIT is currently my biggest holdings with about 329,000 shares worth about $166,000. It is earning me a monthly dividend of $1,100 which helps to pay a lot of my bills. This is because of the merger earlier with Viva Industrial Trust where most of my holdings in Viva Industrial Trust is converted to ESR REIT (and coupled with my original holdings). It looks a lot so may pare down but let's take a look at the statistics first.

With a yield of 8.37%, it is quite attractive. In fact, REITs with similar size (Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics Trust) are yielding at a range of 6-7%. Moreover, they are trading at a slight discount while its peers are trading at a premium of 20% on average. Thus, looks like when the synergies are completed, the market will realize its value of being among the big boys and its price should move upwards. A comparative price level should be about 60 cents which gives an upside of about 20%.

I am more concerned whether there are downsides which I still can't find any as of now so I am holding on to my shares at the moment. They are giving a nice dividend so no complaints about it. Maybe after the price increase then we look at offloading. Do note that it will take some time and I believe it is about a year for it to go up to 60 cents.