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.

Saturday, April 21, 2012

Analysis of Cache Logistics Trust

Current Price on 19th Apr 2012 = $1.02
  • Current Yield = 8.18%  
  • Price-to-book Ratio = 1.092
  • Assets per unit = $1.306
  • Debt per unit = $0.372 (including current liabilities)
  • Gearing = 28.5%
Cache Logistics Trust delivers its results which shows constant growth in its DPU. Its current yield is 8.18% which is favourable. But its price-to-book ratio is 1.092 which makes it quite expensive.

Its gearing is quite low and that shows the stability of the REIT which might justify why it is expensive. But it does not turn out well for me especially when I am looking for REITs which are trading below its NAV value. (It is my first criteria)

To me, Cache Logistics Trust shows what is the potential of other REITs rather than itself so I think I will still look at other industrial REITs like Cambridge and AIMS AMP Capital REIT

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