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.

Tuesday, March 15, 2011

Analysis of Cambridge Industrial Trust (adjusted for Rights)

Current Price on 15th March 2011 = $0.495 (It will be $0.487 after adjustment for rights)
  • Current Yield = 10.42%  
  • Price-to-book Ratio = 0.829
  • Assets per unit = $0.938  
  • Debt per unit = $0.352 (including current liabilities)
  • Gearing = 37.5%  
Japan earthquake has affected the stock markets and Cambridge is one of them. It has dropped below $0.50 level which I thought was the support/lowest level it can go. These are exceptional cases.

Anyway, Cambridge has announced for rights issue to fund acquisition which I felt that it was favourable. It improves the yield to current level of 10.42% (which is now better than AIMSAMP REIT), and reduces the NAV only by a small amount (from $0.607 - $0.587). My rationale is this. As long as the acquisition is yield-accretive, it is a good deal and the manager is acting in the interest of us (unitholders).

I will apply for the maximum that I am allocated for (when it comes) and will also apply for excess rights (Another good chance to earn a bit more). 


  1. Hi,

    Are we suppose to get the letter for the right issues to application? So far I did get any letter?

  2. The letter will only come after they start to allow trading of rights... Should be 23rd March 2011...

  3. I just recieved my Divident recently and the divident yield seems average at current price.

    Since their yield still so high why still asking for money ?

  4. The document that they sent out says that they are purchasing new properties which improves DPU for each unit. But they need to raise cash from unitholders so that they borrow less from the banks and pay less interest.

    I see it as a chance to buy at a cheaper price and raise my holdings on this REIT.

  5. what will normally happen once the right is stop for trading? will the share price drop? i'm allocated for 2500 right, should i go for more? kindly advice

  6. Hi Kenny,

    Nothing significant will happen actually in terms of their share price. The significant part comes in only when it turns XR from CR where the share price will drop a bit...

    I am allocated 3,000 rights and I will definitely be going for more. It is a chance to buy it at a cheaper price. Whether we will be allocated depends on how they allocate.

    From experience, two things will happen. Firstly, they will try to round up to thousands so that you don't have to go to unit share market. That means that if you apply excess of 500, most likely you will get it. Secondly, they tend to give chance to unitholders who hold less shares so comparing between me and you, you stand a higher chance to get more excess. My advice is for you to go for more.