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.

Wednesday, August 1, 2012

Analysis of AIMSAMP REIT

Current Price on 29th July 2012 = $1.275
  • Current Yield = 7.84%
  • Price-to-book Ratio = 0.898
  • Assets per unit = $2.127  
  • Debt per unit = $0.707
  • Gearing = 33.2%
AIMSAMP REIT has recently announced their quarterly report which is somewhat disappointing as its DPU has dropped compared to previous quarter. Coupled with a run up of its trading price, current yield is at a "holding" range of 7.84%

Two things to note for this. Their redevelopment programme is still ongoing which will raise its DPU by 15%. But there might be a delay as there was a fire recently at the construction site. Nevertheless, with its trading price stabilising, I am expecting it to be a small matter. Secondly, they have established a $500 million medium term note programme which helps to diversify their debt sources. This should help in securing the assets that they are owning.

I am still looking at a yield of 8.99% by the time the redevelopment is complete. With 25,000 shares, I am holding on to it and collecting dividends. With its current yield, it is unlikely that I will enter again.

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