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.

Friday, October 20, 2017

Analysis of Soilbuild Business Space REIT

Current Price on 18th October 2017 = $0.69
  • Yield = 7.97%  
  • Price-to-book Ratio = 0.965
  • Assets per unit = $1,217
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 41.2%
  • Secured NAV = $0.548 (78% of trading price)
Soilbuild Business Space REIT has been in the limelight for the wrong reasons. Firstly, one of their tenants could not pay rent so income is impacted. Moreover, one of their properties is still almost vacant and it is affecting income and also underlying value. Let's take a look at the statistics.

Yield is currently at 7.97%. It is supposed to be higher but their DPU dropped by quite a bit comparing to the previous quarter so it is a concern. Price-to-book ratio is at a good 0.965 which means we are buying at a 3.5% discount. Not a lot but not so bad either. Gearing is at 41.2% which does not allow any inorganic growth. It has secured NAV which is close to 80% of their trading price. It serves as a margin of safety although not really safe either.

I am vested with 100,000 shares which I intend to hold and it gives pretty high yield relatively. However, things are getting tricky now and I am not sure whether the DPU will continue to drop. Hope that it is not as much. Not exciting but not worth to change as well.

Monday, September 11, 2017

IPO Analysis of Cromwell European REIT

IPO Price = Euro 0.57
  • Yield = 7.50%  
  • Price-to-book Ratio = 1.00
  • Assets per unit = Euro 0.828
  • Debt per unit = Euro 0.255 (including current liabilities)
  • Gearing = 31.1%
Finally we have a REIT listing in this second half of this year with a European REIT focusing on logistics. Let's take a look at the statistics.

With a yield of 7.5%, it look quite decent but there are other REITs which are local-based and able to deliver higher yield like Cache Logistics Trust, Soilbuild Trust, etc. Moreover, they are selling at market value which is not really attractive because there are other REITs which are trading at a discount. Some of these have moved to become premium REIT so the price may well just hold up. Gearing is at a comfortable 31.1%.

Do note that it is trading in Euros so there is currency risk, and European Central Bank is still printing lots of money so Euros may just continue to fall. While I thought this is decent, the currency risk doesn't help.

I will be taking a backseat on this REIT (I have been doing it for a while actually) and see whether the price hold up.

Thursday, August 24, 2017

Updating my Current Portfolio - Increasing Yield

Hi everyone,

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

Ascendas Hospitality Trust

With them trading at 10% discount and a low yield of 6.28%, I felt that it is time to let go (80,000 shares at $0.835) and enjoy the capital appreciation that I got as well as the previous dividends declared. This investment is about 7 months which is very short. Not good actually but with the recent run-up in price, there is a need to relook and see whether is it still worthwhile to hold on to it. For this investment, there is another opportunity so I jump at it.

Dasin Retail Trust

With the cash that I obtained, I bought 80,000 shares at $0.80 (14,400) and $0.81 (65,600) two weeks ago (when I posted my analysis). With a steep discount to NAV and high yield (with sponsor wavier), I think this is a good investment with a large margin of safety. I am just thankful that I bought it in time because it has run up to $0.84, giving me about $2,000 in capital appreciation. I shall hold on to it while enjoying the dividends. With this, I have also increased my monthly yield as well which is the original intent.

With that, here is my updated portfolio as of 23rd Aug 2017, giving me $4,400 passive income monthly which is fantastic. It is like having another person working at home.


Monday, August 7, 2017

Analysis of Dasin Retail Trust - A hidden diamond just uncovered.

Current Price on 4th August 2017 = $0.81
  • Yield = 8.40%  
  • Price-to-book Ratio = 0.487
  • Assets per unit = $2.971
  • Debt per unit = $1.308 (including current liabilities)
  • Gearing = 44.0%
Some of my readers are asking about Dasin Retail Trust which I researched on it. The results were fantastic. I wonder why I did not research on this previously despite it staring at me. Let's take a look at the statistics.

With a yield of 8.40%, it is one of the highest yielding REIT in SGX now especially in the retail sector. Moreover, they are trading at a whopping 52% discount to NAV. It means that we are buying it at at least half price. Do note that all their properties are based in China. But we do have other China-based REITs like Mapletree Greater China Trust and CapitaRetail China Trust which are trading at good value so it shouldn't be a problem here. Their Gearing is at a high of 44.0% but not so much of a worry as of now.

I am considering to switch some low yielding REITs or Trusts into this now I know that there is such an option. Moreover, I have queued and purchased 14,400 shares at $0.80 last week. No matter what, I will be queuing to buy more this week, hopefully to increase my shareholdings as much as I would like.

Friday, August 4, 2017

Analysis of EC World REIT - A hidden REIT with good statistics.

Current Price on 27th July 2017 = $0.785
  • Yield = 7.85%  
  • Price-to-book Ratio = 0.876
  • Assets per unit = $1.854
  • Debt per unit = $0.958 (including current liabilities)
  • Gearing = 51.7%
EC World REIT caught my eye because of their statistics and also the recent run-up of all other REITs and Business Trust. Let's take a look at the statistics.

With a yield of 7.85%, it is probably one of the highest yielding REIT in SGX now. Moreover, they are trading at a 12% discount to NAV which is good. Do note that all their properties are based in China doing e-commerce which looks like a boom now for them where online retailing is involved. Their Gearing is at a high of 51.7% and this is actually worrying.

This could be better than Sabana REIT that I bought recently and is able to challenge Viva Industrial Trust, Soilbuild REIT etc. It is not easy to find such a combination now i.e. high yield with trading at discount to NAV. I will consider moving some funds into this.

Tuesday, August 1, 2017

Analysis of Sabana REIT - Now what?

Current Price on 27th July 2017 = $0.46
  • Yield = 7.12%  
  • Price-to-book Ratio = 0.792
  • Assets per unit = $0.944
  • Debt per unit = $0.369 (including current liabilities)
  • Gearing = 39.1%
  • Secured NAV = $0.315 (69% of trading price)
Sabana REIT has delivered a set of results which is not really good because their DPU continues to go down. It has an impact on their share price which is at $0.46. It has actually recovered from my earlier post of $0.425 which could have been an entry price. I delayed my decision and paid the price. Let's take a look at the statistics.

With a yield of 7.12%, it is not exciting. There are others like Soilbuild Business Space REIT and Viva Industrial Trust which are giving a higher yield. However, they are still trading at a discount to NAV. It is about 20% discount which is quite rare in the current investing climate. Well, there are cheaper ones around like Dasin Retail Trust, Accordia Golf Trust which are overseas, and Far East Hospitality Trust, Keppel REIT whose yield is actually lower. Gearing is at a good 39.1% but I expect this to go lower.

I am vested with 106,500 shares worth close to $50,000 and I am holding on to the long haul simply because they are trading at a discount to NAV. Valuation may be dropping but I don't think it will go very low. With the strategic review still in motion, they might just spring a surprise.

Friday, July 28, 2017

Analysis of Viva Industrial Trust - A premium REIT by now.

Current Price on 27th Jul 2017 = $0.93
  • Yield = 7.97%  
  • Price-to-book Ratio = 1.177
  • Assets per unit = $1.370
  • Debt per unit = $0.580 (including current liabilities)
  • Gearing = 42.3%
  • Occupancy = 90.6%
Viva Industrial Trust has published their results which shows their capability to generate high yield despite having low asset valuation. Their price has been increasing for a while already so have to look at the statistics again.

Yield is currently at 7.97%. It is not as high as what I hope for but still one of the highest in the market. Soilbuild Business Space Trust is giving a higher yield as of now. Moreover, they are trading at a 17.7% premium which is very unfavourable. They are trading close to the league of the big boys like Ascendas REIT. Occupancy is still at 90.6% which is ok compared to market vacancy.

Viva Industrial Trust has given me a lot, in terms of dividends and capital gains over the years since I bought them sometime in 2015 and subscribe to their rights issue as well, giving me about 87,100 shares. It looks like it is time to take a look at other counters although I have to admit that there are not many opportunities out there by now.