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.

Monday, July 4, 2011

JTC divests two tranches of its properties - Channel NewsAsia

JTC divests two tranches of its properties - Channel NewsAsia

Mapletree Industrial Trust has been given the chance to acquire at additional $400Million worth of properties. Now we shall look at how MIT is going to finance this acquisition which includes issuance of new units. The price has moved up quite a lot to $1.18 which gives us the stats.

  • Price = $1.18
  • Yield = 6.54%
  • Price to book ratio = 1.35
  • Asset per unit = $1.578
  • Debt per unit = $0.632
  • Gearing = 40% (even though prospectus indicated 38.5%)
  • Secured NAV = $0.946
At the current look, it seems that the acquisition has already been priced in. Moreover the statistics does not look appealing now and it is trading at a similar level as A-REIT in terms of yield and price-to-book value. Therefore, it has not reached my criteria for investment. Having said that, this is a very strong REIT with strong management. Further news might change my perspectives. When new statistics comes in, I will look at it very closely.

2 comments:

  1. Looking at the MapletreeInd campaign, it was previously in an accumulation zone between 1.15-1.17. Today we witnessed a new high at 1.18. I calculated the accumulation phase and it projected price towards the 1.35-1.42 level in the short to mid term. This tells me that the accumulation phase might be over soon.

    Looking at the broader picture, the longer term accumulation projected price towards at a higher level. For now we shall watch it's progression.

    ReplyDelete
  2. Saw your blog... Nice analysis...

    ReplyDelete