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.

Monday, August 27, 2012

Analysis of Sabana REIT

Current Price on 17th August 2012 = $1.035
  • Current Yield = 8.77%  
  • Price-to-book Ratio = 0.964
  • Assets per unit = $1.70 
  • Debt per unit = $0.627
  • Gearing = 36.9%   
Here is an analysis of Sabana REIT which I see it as a laggard in the S-REIT sector.

Current yield is at 8.77% which is currently the highest in the market. In fact, it is now the only REIT which fulfills my criteria of 8%. Moreover, it is trading at a discount to NAV although it is close to 1. Its gearing is at a comfortable 36.9%.

Trading price has been rising steadily these days although it is at a much slower pace compared to its peers. I think this presents an opportunity to make inroads and invest in this high yield REIT given the current situation where you don't have much of a choice left. One issue to think about would be its price-to-book ratio which is already very close to one. If its price goes above $1.074, it would become a premium REIT which is not favourable anymore.

I got one lot at IPO price and will be loading this soon once I have investible cash (which is coming soon.)

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