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, November 24, 2011

Some thoughts on debts in REITs

Recently, I have been reading a report from CIMB which discuss about debts of FCOT and K-REIT, both which I am vested in. It makes me ponder on a few issues of debt i.e. whether the debts that they carry do affect their stock market pricing.

Moreover, with the consistent drop in value of K-REIT, I began to ponder whether is it worth to subscribe to its rights. It is already trading close to its rights value which is 0.85, wiping out my margin of safety into the negative territory. I have always believed in my analysis and is quite sure about its assets, secured NAV and debts but the market does not say so.

Something tells me that my analysis should move on to the next stage and dwell deeper into each REIT's assets, debts, and independent property market reports (which I realize that I can find it in K-REIT's document)

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