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.

Friday, April 1, 2011

Analysis of First REIT

Current Price on 1st April 2011 = $0.74
  • Current Yield = 8.65%
  • Price-to-book Ratio = 0.965
  • Assets per unit = $1.047  
  • Debt per unit = $0.281
  • Gearing = 26.8%
  • Secured NAV = $0.064
First REIT has been very consistent in its pricing between $0.72 and $0.76. The yield is high at 8.65% and is trading at a slight discount to NAV. Since the last update, they have sold Pacific Cancer Centre at a premium which reflects their capability to manage the properties and its commitment to act in the interest of unitholders. (NAV not updated for this transaction yet)

However, the pricing is very close to its NAV level and I believe this is the upper trading limit ($0.78 according to news in their website). For me, if the share price hits beyond $0.78, I will sell the investment and switch to something else (likely in one of my core investments) 

No comments:

Post a Comment