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 $3,300/month.

Monday, March 20, 2017

Analysis of Asian Pay Television Trust

Current Price on 7th Mar 2017 = $0.43
  • Yield = 15.12%  
  • Price-to-book Ratio = 0.502
  • Assets per unit = $1.905
  • Debt per unit = $1.048 (including current liabilities)
  • Gearing = 55.0%
Asian Pay Television Trust has been in the news lately especially when there is a change of manager or I should say, there is an acquisition of its manager by a Taiwanese local who should be more familiar with the industry. It created a buzz and price went up a bit but has since went down as well. Here are the statistics.

With a yield of 15.12%, it is the highest yielding trust that I have, even higher than Global Investment Limited. Its price-to-book ratio is 0.502 which means we are buying at half price although how true it is really depends. This is not property where it is relatively more stable and predictable. Gearing is at a high of 55.0% with high debts.

While I thought this investment might be risky, I think the yield is worth the risk with extremely high yield and 50% discount to NAV. Yes, the price has dropped very significantly from previous high which makes investors wary but I think the margin of safety has reached quite a level that I don't think it can go any further down. Maybe a bit more but won't be so much.

I am vested with 100,000 shares worth about $43,000. I am investing for long term and I am waiting for Netlink Trust to be listed since the business is very much the same. It will be a good reference point for APTT.

Thursday, March 9, 2017

Analysis of Sabana REIT - Realizing NAV on the cards?

Current Price on 7th Mar 2017 = $0.47
  • Yield = 7.49%  
  • Price-to-book Ratio = 0.675
  • Assets per unit = $1.149
  • Debt per unit = $0.453 (including current liabilities)
  • Gearing = 39.4%
  • Secured NAV = $0.407 (86.5% of trading price)
Recently Sabana REIT has been on a roll and been in the news for the right and wrong reasons. On one hand, they are facing a revolt from unitholders. On another hand, there is a new substantial shareholder which means there are interest from big companies to come in and take advantage of the situation to earn money. In any case, those news has been pushing the price up which I have benefited by quite a lot. Let's take a look at the statistics.

With a yield of 7.49%, it is not good by industrial REIT standards. However, it is diluted because of the rights issue and I am expecting their yield to be around 8.5% instead. Its price-to-book ratio is 0.675 which means we are still buying at above 30% discount. Secured NAV is $0.407 which is pretty high.

Recent news and developments shows that when the trading price is at a discount to NAV, there is a opportunity of being noticed and acquired by bigger companies because of its cheap value. Having a sponsor provides stability but no potential for such a development. It affirms my belief that we should buy REITs that are trading at a substantial discount to NAV to protect our capital.

I am heavily vested with 235,500 shares now worth about $110,000, giving me a paper gain of about $18,000 and dividends of $2,000. It may just well be enough and time to lock in some gains.

Monday, March 6, 2017

Analysis of Global Investment Limited - Steady investment

Current Price on 5th Mar 2017 = $0.145
  • Yield = 10.34%  
  • Price-to-book Ratio = 0.724
  • Assets per unit = $0.204
  • Debt per unit = $0.004 (including current liabilities)
  • Gearing = 1.8%
  • Secured NAV = $0.200 (138% of trading price)
Global Investment Limited has published their results which to me is a steady results. Here are the statistics.

With a yield of 10.34%, it is one of the highest yielding investment holding companies which I rank it with REITs and business trusts. It has always been yielding at this since I invested in it so I have been enjoying around 10% yield for a few years already. What is fantastic is that there is virtually no liabilities so everything they own is secured. Therefore, they are currently trading at a discount to secured NAV which is great for us.

Some people asked me about my capital and mention that they have dropped a lot in terms of their price over the years. Well, I agree that their price has dropped a lot over many years but it really depends on the entry price of your investments. I can tell you is that my entry price for Global Investment Limited is about $0.14. It ranges from $0.128 to $0.16 because of my multiple entry positions and also converting dividends into shares directly. Thus, I have not made losses to my capital and enjoyed 10% dividends along the way.

In my overall portfolio, I am just glad that I have made an overall capital gain over the years that I have been investing. (About $90,000 to date) To me this is a bonus as my aim is always to 0% capital gain which is in fact preserving capital. I am just as concerned as my readers on preserving capital. For my different counters, some will make a loss while others make a gain but what is more important is the overall portfolio which I am still pleased as of now. I thank my readers who is concerned about me and my portfolio and I encourage you to take a long term view of your portfolio as well.

I am vested with about $100,000 worth of shares (about 730,000 shares) so I am receiving $5,500 worth of dividends this round. Will be converting them into shares because usually they issue at a discount.

Monday, February 27, 2017

Last Purchase in completing my investment plans

Hi everyone,

I just want to update another investments that I have made.

Asian Pay Television Trust 
I have increased my shareholdings of Asian Pay Television Trust from 32,000 shares to 100,000 shares at $0.45 two weeks ago. Again, I was watching this for a while and regretted not buying when it was below $0.40. However, I am still consoled because it continues to rise to $0.47. With high yield, trading at a deep discount and a possibility of comparison when Netlink Trust is going to be listed, I believe the pricing will be adjusted accordingly.

Moving Forward
I have completed my investment plan and increased my passive income to $3,700 which is great for me. It is just like having another person working for me and my family. Moving forward, I will just be tweaking some of my portfolio especially those whose yield are not so high or price-to-NAV is reaching one.

Tuesday, February 14, 2017

Analysis of Soilbuild Business Space REIT

Current Price on 27th Jan 2017 = $0.64
  • Yield = 9.81%  
  • Price-to-book Ratio = 0.887
  • Assets per unit = $1.224
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 41.0%
  • Credit Rating = Baa3
Soilbuild Business Space Trust has published their results which caught my attention. Also because recently I haven't been looking at it and when I glance their results, I realize that I have missed this great opportunity. Let's take a look at the statistics.

With a yield of 9.81%, it is probably one of the highest yielding REIT in Singapore, probably the highest now among the industrial REITs. Sabana REIT, AIMSAMP Industrial REIT, Viva Industrial Trust has all risen or executed some rights issue. So now is this one. With a price-to-book ratio of 0.887, we are buying at a slight 11% discount, very similar to Viva Industrial Trust. More importantly, it has a credit rating of Baa3 which is considered investment grade and quite good.

Soilbuild Business Space Trust presents a very good opportunity for those who still does not have exposure to industrial REITs in Singapore. For me, I am heavily subscribed to AIMSAMP Industrial Trust, Sabana REIT and Viva Industrial Trust. If I were to invest in it, I may need to unload AIMSAMP to invest in them.

Thursday, February 9, 2017

Analysis of Fraser Commercial Trust

Current Price on 27th Jan 2017 = $1.26
  • Yield = 7.97%  
  • Price-to-book Ratio = 0.808
  • Assets per unit = $2.614
  • Debt per unit = $1.054 (including current liabilities)
  • Gearing = 40.3%
  • Secured NAV = $1.56 (123% of trading price)
  • Credit Rating = Baa2
Fraser Commercial Trust was one of the past anchor investments but I have since sold it quite a few years back. Now it is back in the spotlight for the reason that it is one of the highest yielding office REIT with properties in Singapore, competing directly with OUE Commerical Trust which has quite similar statistics.

Yield is at 7.97% which is quite high and there is room for improvement because it is still developing a hotel segment which has no yield. Moreover, it is trading at a 20% discount to NAV which means we are (again) buying at a discount which is good for us. Gearing is at a healthy 40.3%. What is more important is that its secured NAV is $1.56 which is at 123% of the trading price. This means that in the very bad scenario, we should be getting $1.56 back which is still higher than the trading price. With a credit rating of Baa2 which is investment grade and quite good, I don't see why they should be trading at this price.

I am vested with OUE Commerical Trust (30,300 shares) and I am thinking of switching it to Fraser Commercial Trust. With some cash, I might put in more.

Monday, February 6, 2017

Analysis of Suntec REIT

Current Price on 27th Jan 2017 = $1.725
  • Yield = 6.02%  
  • Price-to-book Ratio = 0.781
  • Assets per unit = $3.589
  • Debt per unit = $1.381 (including current liabilities)
  • Gearing = 38.5%
Suntec REIT published their results before CNY which has always puzzled me. Let's take a look at the statistics.

Yield has been stable at 6.02% which is still quite ok (but not to my standard) but their price-to-book ratio is at 0.781 which means that they are trading at a 22% discount to their valuation price. This is something which makes it attractive. Gearing is at a healthy 38.5%.

I am puzzled that they are always trading at a discount despite being one of the largest REIT in Singapore and holding on to assets which are located at prime land. Someone has told me before that valuation is quite influenced by the REIT manager but this is the only indicator that we can rely on to decide whether we are buying on a cheap. Of course, there are other business trust which has proven that NAV is not really reliable but here we are talking about properties which is relatively quite stable.

Nevertheless, Suntec REIT's yield is way too low for me and it is very unlikely that I will invest in it. Unless there are some other ways to improve the yield at my end.