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, September 9, 2011

Analysis of Ascott REIT

Current Price on 7th Sept 2011 = $1.085
  • Current Yield = 8.22%
  • Price-to-book Ratio = 0.777
  • Assets per unit = $2.51  
  • Debt per unit = $1.114
  • Gearing = 44.4%
Ascott REIT is one of the two hospitality REIT (another is CDL Hospitality REIT) listed on SGX. Since the last review, the price has dropped by quite a lot. From the statistics, we can see that the yield is at 8.22% which has met my criteria. Moreover, it is trading at a discount to NAV which makes it attractive. The only problem is its gearing which is quite high but they have a strong sponsor so that should not be a problem.

Hospitality REIT seems to be adopting a different formula which I will be looking into it. Basically it is the length of stay which is very short so its rent is more subjective to market fluctuations. However, it is the same if you buy a condo and rent it out. Moreover, we have a strong management here who will take care of everything for us.

Ascott REIT is also one which has properties that spans all over the world. This is a good counter if you want a diversified portfolio. I am looking to this and will consider if I have excessive cash on hand.

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