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.

Monday, February 27, 2012

Analysis of First REIT

Current Price on 17th Feb 2012 = $0.79
  • Current Yield = 9.71%  
  • Price-to-book Ratio = 0.985
  • Assets per unit = $1.056 
  • Debt per unit = $0.249 (including current liabilities)
  • Gearing = 23.6%
  • Secured NAV = $0.064 (8.5%)  
First REIT earlier has reported its results which has given me new reasons to look into it again. With a current yield of 9.71% (including distribution of their capital earnings), it is quite attractive as it is one of the highest yielding REIT (especially with the increase in price in the recent rally.)

The only issue which I have with First REIT is its price-to-book ratio is 0.985 which is quite close my threshold of 1. This means that its trading price is very close to its NAV price which I don't favour. I need more reasons to believe that it is good, strong and stable (which it has been actually.)

First REIT has not moved up significantly compared to the other REITs and ST Index in general. It depends on how you look at it. Either it is fully-valued, or it is slow to start to move up. Will analyze more as time goes by

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