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, July 19, 2010

Statistics on K-REIT Asia

  • Price = $1.21
  • Yield = 5.42%
  • Price to book ratio = 0.802
  • Asset per unit = $1.77
  • Debt per unit = $0.262
  • Gearing = 14.8%
  • Secured NAV = $0.962
According to my criteria, K-REIT Asia falls behind with a very low yield of 5.42%. However, that is probably the only problem I manage to see. With current price at a discount to its NAV, very low gearing, and high secured NAV and a medium term notes programme to draw funds from. I don't see them having problems securing funds to refinance its debt. Thus, I would say that its NAV is quite safe from being seized. With its low gearing, it would be interesting to see how they are going to use its funds/debts to make acquistion to improve its yield. I am looking closely at this, but not buying yet.
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