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 $1,700/month.

Monday, November 28, 2016

Analysis of Frasers Hospitality Trusts - Direct Competition with Far East Hospitality Trust

Current Price on 22th November 2016 = $0.65
  • Yield = 8.02%  
  • Price-to-book Ratio = 0.809
  • Assets per unit = $1.28
  • Debt per unit = $0.477 (including current liabilities)
  • Gearing = 37.3%
Frasers Hospitality Trust recently has a drop in their price which resulted in an increase in their yield. Well, it is starting to fit my indicators so let's take a look at the statistics.

Yield is at 8.02% which is the highest among hospitality trust. However, their price-to-book ratio is 0.809. It means we are buying at 20% discount to NAV. Not very cheap though because there are other hospitality trusts which are cheaper i.e. Far East Hospitality Trust. With a gearing of 37.3%, it looks quite safe.

This is one with an international portfolio so it depends on the world economy as a whole (in contrast to Far East Hospitality Trust). With the yield at a good place, it is worth considering although Far East Hospitality Trust still seems better.

Thursday, November 24, 2016

Analysis of Global Investment Limited

Current Price on 21st Nov 2016 = $0.133
  • Yield = 11.28%  
  • Price-to-book Ratio = 0.68
  • Assets per unit = $0.204
  • Debt per unit = $0.008 (including current liabilities)
  • Gearing = 4.1%
  • Secured NAV = $0.196 (147% 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 737,000 shares which is huge and it is currently worth about $100,000. Let's take a look at the statistics.

The yield continues to be high at 11.28% which is very good for me. Considering that its price has not dropped much, this is ideal as a high yield savings account. Moreover, with price-to-book ratio at 0.68, we are buying at 32% discount. They only have to generate a equity yield of 7% to help us enjoy a at least 10% yield. With little debt, there is no risk of company failing.

With close to $100,000 invested in this, I am getting $11,280 in dividends per year which is about $1,000 per month. With some cash coming in, I am still thinking of increasing my investments in this. Aiming to increase to one million shares at this point.

Monday, November 21, 2016

Thursday, November 17, 2016

J5Investments - Updates of my portfolio

Hi everyone,

Realize that I haven't update my portfolio for a while so here are the updates.

Ascendas H-Trust

I sold them in July at $0.715 after realizing that it doesn't really fit into my plans aka the yield. Moreover, I also need the money for family cashflow due to renovation of my new house. Well, maybe I should have sold it at a higher price because there is a chance but to me, it's ok.

Sabana REIT

With the money and using my margin facility, I purchase another 20,000 shares of Sabana REIT at $0.515, increasing my holdings to 41,000 shares. They give a high yield and is trading at a deep discount to NAV. Thus, I thought it is a good time to enter the market. I am glad that I did because they have not dropped further and I have received two rounds of dividend at around 9% yield. So I am good.

Viva Industrial Trust
I participated in the recent placement exercise for Viva Industrial Trust and manage to get a small 8,000 shares at $0.74, thus increasing my shareholdings to 87,100 shares worth about $65,000. As one of my anchor investments, they have moved back up and is sitting pretty comfortably at $0.75 (on 15th Nov.)

Loans
I just sold my HDB flat and have gotten a sum of cash from the proceeds. Thus, I have used the money to pay off my margin loan. No more 6% loan as of now. But I did took up a renovation loan at 4.38% for my new house which was suppose to be paid using my investment cash. Thus, it will feature in my portfolio.

Overall
Thus with these portfolio, here are the statistics. With this portfolio, it is generating an average of $2,282 per month which is great for me. Enjoying the extra passive income.



Monday, November 14, 2016

Analysis of Far East Hospitality Trust - Cheapest REIT?

Current Price on 12th November 2016 = $0.60
  • Yield = 7.47%  
  • Price-to-book Ratio = 0.646
  • Assets per unit = $1.394
  • Debt per unit = $0.465 (including current liabilities)
  • Gearing = 33.4%
Far East Hospitality Trust just reported their results which sort of caught my interest and made me consider adding them into my portfolio. Let's take a look at the statistics.

Yield is at a modest 7.47% which is quite comparable to other hospitality trust. However, their price-to-book ratio is 0.646, making them the cheapest hospitality trust in SGX. They are also the second cheapest REIT in SGX considering all sectors. Only Sabana REIT is cheaper. With a gearing of 33.4%, it looks quite safe.

Of course, the revenue is really dependent on the tourism and this is a pure-Singapore play. To be frank, I like Singapore play REITs since I live here and I am able to monitor the situation better. With such cheap REITs going on, I will consider seriously to add this into my portfolio.

Tuesday, October 25, 2016

Analysis of Capital Commercial Trust - Office REITs still at a very low yield

Current Price on 20th October 2016 = $1.60
  • Yield = 5.75%  
  • Price-to-book Ratio = 0.916
  • Assets per unit = $2.698
  • Debt per unit = $0.951 (including current liabilities)
  • Gearing = 35.3%
  • Credit Rating = A3
Capital Commercial Trust has reported their results. To be frank, I have not been interested in them for a long time due to their low yield and pretty high volatility in trading price. Let's take a look at the statistics first.

With a yield of 5.75%, the yield is quite low. But considering that you are buying into a reputable management and strong sponsor, it adds to the credibility. Its price-to-book ratio is much better at 0.916 which means we are buying at an 8% discount. Its gearing is quite healthy and it has a strong credit rating of A3 which is better than most unrated bonds in the market. Thus, their yield is probably quite comparable or even lower.

While I understand the strength of the management which resulted in high trading price, I do not believe that it will be value adding to my portfolio. I am looking at high yield + discount to NAV which probably add some risks into my portfolio but also gives me a higher passive income. Thus, I still won't consider this into my portfolio.

Friday, October 21, 2016

Analysis of Sabana REIT - Bottoming out?

Current Price on 20th October 2016 = $0.53
  • Yield = 9.06%  
  • Price-to-book Ratio = 0.599
  • Assets per unit = $1.528
  • Debt per unit = $0.644 (including current liabilities)
  • Gearing = 42.1%
Sabana REIT has published their set of results which I thought was reasonable. I am vested with 41,000 shares which I earn close to $500 in dividends for this round. Let's take a look at the statistics.

With a yield of 9.06%, it is currently one of the highest yielding REIT with only local exposure. What is more attractive is that its price-to-book ratio is only 0.599 which means we are buying at a big discount of 40%. No doubt information on valuation is very limiting but this is still the best gauge for us retail investors. Their occupancy has been stable at 88% which is quite comparable to the big boys which are at around 91%.

There are a lot of talks on the management and thus the price is quite depressed. Well, I think it has already been priced in and this is a good opportunity to enter with such cheap valuation by the market. With some cash coming, this is one of my top choice to enter the market. My only consideration is that I am already heavily vested in industrial properties.