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.

Friday, April 20, 2012

Analysis of Cambridge Industrial Trust

Current Price on 19th Apr 2012 = $0.56
  • Current Yield = 8.36%  
  • Price-to-book Ratio = 0.902
  • Assets per unit = $0.931
  • Debt per unit = $0.31 (including current liabilities)
  • Gearing = 33.3%
  • Secured NAV = $0.075 (13.6%)  
Cambridge Industrial Trust finally delivers the results which I have been expecting. Its yield has improved to 8.36% (noting that there is price increase as well) which is still above my minimum standard of 8%.

Cambridge has resumed its Dividend Reinvestment Plan (DRP) which I am in favour of. To me, it looks like an account which gives compound interest. However this time round, I will make sure that I don't have odd lots so that it is easier for me to exit this investment should there be a need to.

Price-to-book ratio is at a modest 0.902 (which means we have a 10% discount). Secured NAV should increase when compulsory acquisition by the Govt kicks in.

I am vested with 50,000 shares and I am watching the price closely because its pricing is very high now and there are more reasons to invest in other REITs.

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