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.

Wednesday, October 26, 2011

New Purchase of K-REIT Asia

Yesterday, I made a new investment in K-REIT Asia with an initial investment of $5,730. I took note of the upcoming rights issue which I will subscribe fully, increasing my investments to almost $10,000. Thus, it would become an anchor investment in my portfolio.

At this price, I am looking at getting an 8.21% yield, which will increase to 8.87% yield after rights issue. This provides me with $888 dividend per year. Moreover, I will be applying for excess rights which I am confident that I will get and that will 1) reduce the cost of investment and 2) increasing dividend.

I have chosen to consider the upcoming investment in Ocean Financial Centre as an unencumbered property. Therefore, its secured NAV is assumed to be $1.101 which is higher than its ex-rights price (currently at $0.904). If it is true, it means that $1.101 per share is actually secured for unitholders.
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