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, August 19, 2010

Statistics on CapitaCommercial Trust

Current Price at $1.40 
  • Current Yield = 5.54%
  • Price-to-book Ratio = 1.071
  • Assets per unit = $2.027
  • Debt per unit = $0.719 (Interest Rate at 13%)
  • Gearing = 35.5%
  • Secured NAV = $0.996
CapitaCommercial Trust is one of those which has one of the lowest yield. It would be possible to get a yield of 5.54% if one would to buy preferred shares issued by either DBS, OCBC and UOB. (Page about it is coming up). Thus, if one is going to invest in this REIT, we got to look at appreciation of NAV of its underlying assets, and the potential increase in its yield. The current rent for its office is very low and on the verge to increase. There is a potential to increase by 50% which could translate to an increase of its yield to beyond 8%. (I haven't do my maths yet because I have not set up the excel sheet)
Nevertheless, I am looking at those which I have invested in (and not this REIT). According to Warren Buffet, it would be better to have portfolio concentration but you need to watch it closely. Diversification is not recommended. Hmmm... Let's think about it...

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