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, April 19, 2012

Analysis of Capital Retail China Trust

Current Price on 19th Apr 2012 = $1.29

  • Current Yield = 7.47%
  • Price-to-book Ratio = 1.017
  • Assets per unit = $2.179
  • Debt per unit = $0.911 (including current liabilities)
  • Gearing = 41.8%

Capital Retail China Trust reported its results which caught my eye. They deliver high yield of 7.47% (not within my minimum standard of 8%) and its price-to-book ratio is 1.017 which is not my criteria.

What I began to realize for CRCT is its exposure to RMB. If I invest in this REIT, I am also investing in its currency of RMB which I was initially exploring recently. Since RMB is widely known to be undervalued, it is likely to appreciate in the middle term, raising its yield and NAV.

Moreover, with a strong sponsor like Capitaland who manages this REIT, it provides some sense of security for retail investors like us.

I am looking closely into this REIT. If there is price weakness these days, I might just start to invest in this REIT for growth.

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