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.

Tuesday, April 17, 2012

Analysis of K-REIT Asia

Current Price on 17th Apr 2012 = $0.985
  • Current Yield = 7.76%  
  • Price-to-book Ratio = 0.746
  • Assets per unit = $2.311
  • Debt per unit = $0.991 (including current liabilities)
  • Gearing = 42.9%
  • Secured NAV = $0.675 (68.57%)  
K-REIT Asia delivers a strong 1Q result with an increase in distribution which is 0.5 cents higher than what was discussed earlier. I believe this causes a price jump from $0.94 to open at $0.965 this morning. Another highlights for K-REIT Asia is its cost of debt which is at 2.03%. This is very low compared to other office REITs.

Yield is at 7.76% which is very close to the threshold which I abide to. Moreover, its price-to-book ratio is at 0.746 which is comparable to CapitaCommercial Trust. The only drawback that it has is its secured NAV which is at 69%. CapitaCommercial Trust is at 110%.

There are still some way to go for OFC which should help to prop up the yield. Apart from that, K-REIT Asia should be stabilising for now before looking at the next growth opportunities. I am vested with 16,000 shares and will continue to hold on to it.

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