S-REIT Investment Blog: Analysis of First REIT

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.

Saturday, December 18, 2010

Analysis of First REIT

Current Price on 17th Dec 2010 = $0.69

Current Yield = 9.02%
Price-to-book Ratio = 0.899
Assets per unit = $0.969
Debt per unit = $0.207
Gearing = 21.3%
Secured NAV = $0.064

I have decided to analyze this REIT again despite the short timeframe due to the fall in price level. From the data shown above, I felt that the current price is still good as it is trading at 10% discount to NAV + a yield of 9.02% which is very high. With low gearing which helps to provide stability, this is definitely something worth considering.

Currently, I have three anchor investments which provide steady income supplement to me and one of them is First REIT. If there is going to be additional funds for investments next year, this is one of those which I will consider buying.