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.

Wednesday, December 29, 2010

Analysis of Ascott REIT

Current Price on 29th Dec 2010 = $1.28
  • Current Yield = 6.31%
  • Price-to-book Ratio = 0.947
  • Assets per unit = $2.037  
  • Debt per unit = $0.749
  • Gearing = 36.8%
Ascott REIT is one of the two hospitality REIT (another is CDL Hospitality REIT) listed on SGX. From the statistics, we can see that the yield is still quite low at 6.31% which does not meet my criteria. However it is higher than CDL which makes it slightly more attractive. Moreover, it is one of the few trading at a discount to NAV. This is something worth looking at as assets values are either stable or appreciating which is good for REIT. This also means that we are buying an asset at a discount.

I won't be considering this unless they can improve their yield. However, I will look at this closely as it is quite possible for it to improve its yield. Let's wait and see how much its dividend will go up.

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