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.

Sunday, September 11, 2011

Analysis of AIMSAMP REIT (Adjusted for Consolidation)

Current Price on 11th Sept 2011 = $0.205 ($1.025 after consolidation)
  • Current Yield = 10.34%  
  • Price-to-book Ratio = 0.75
  • Assets per unit = $0.465  ($2.325 after consolidation)
  • Debt per unit = $0.191 (including current liabilities) ($0.955 after consolidation)
  • Gearing = 41.2%  
  • Credit Rating = Ba2

A series of news has dragged down the REITs sector which presents opportunities according to my personal opinion. Recently, AIMS AMP Capital REIT has announced a consolidation which should improve trading spread. This would allow a better reflection of the market price of this REIT.

A note to make: I thought that the interest rates for loans would be higher but with the recent news from US, it seems that it is going lower instead. This should be good news and AIMS AMP REIT should work on refinancing to take advantage of this opportunity to reduce interest payments. Just hope that they do so...

With 70,000 shares on hand (14,000 shares after adjustments), this is one of my anchor investments. 10+% yield is good enough for me.

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