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.

Thursday, September 29, 2011

Analysis of CapitaCommercial Trust

Current Price on 28th Sept 2011 = $1.02
  • Current Yield = 7.53%
  • Price-to-book Ratio = 0.654
  • Assets per unit = $2.189
  • Debt per unit = $0.63 
  • Gearing = 28.8%
  • Secured NAV = $1.144
CapitaCommercial Trust caught my attention because I believe its current price is severely undervalued. With a yield of 7.53%, it is now very close to the threshold of my criteria of 8% which I am ready to overlook if other factors are highly favourable. And this is the case.

Current secured NAV is $1.144 which is higher than its current price. This means that I am buying a top-grade property at a discount with a 112% guarantee. Moreover, we have a proven manager with a great track record. This is highly attractive.

I am looking for money to buy in this counter. Some options include selling what I have currently to buy into this counter.
Posted by at
Labels: ,

2 comments:

  1. Ah JohnOctober 3, 2011 at 10:31 PM

    Any comment for this view:
    http://thefinance.sg/2011/10/02/office-s-reits-vs-industrial-s-reits-2/

    Industrial better than office?

    ReplyDelete
  2. jc.education.sgOctober 31, 2011 at 8:17 AM

    Hi Ah John,

    Just managed to see your comments only today so it is a bit very late... I have no doubts about Industrial REITs because it offers high yield (higher than Office REITs)... Just that I am overexposed to it. Moreover, I am also looking at how to evaluate the "management" factor and how much it affects my analysis...

    ReplyDelete

Subscribe to: Post Comments (Atom)