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.

Sunday, August 19, 2012

Analysis of Far East Hospitality Trust

IPO Price = $0.93
  • Current Yield = 6.00%
  • Price-to-book Ratio = 0.999
  • Assets per unit = $1.337
  • Debt per unit = $0.406
  • Gearing = 30.4% 
  • Secured NAV = $0.931 (100%)
Far East Hospitality Trust has launched its IPO which is priced at the top end of their indicative range. This shows that the demand is very high and if the range is larger, it could have been even higher.

At 6.00% yield, it would not have met my investment criteria of 8% but there are other attractive factors like 100% secured NAV and opportunity to invest directly into Singapore's tourism sector. I believe it will trade to a level that is the same as CDL H-Trust.

Because it is priced at the top end of the indicative range, I have applied for its IPO hoping that I will get some of them. I am quite sure that when it starts trading on the 27th August 2012, it will be above $0.93.

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