Welcome

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 $4,200/month.

Saturday, September 29, 2012

Fortis Healthcare seeks to raise up to S$550.4m through IPO - Channel NewsAsia

Fortis Healthcare seeks to raise up to S$550.4m through IPO - Channel NewsAsia:

'via Blog this'

This is one IPO which consist of healthcare assets and it will rival First REIT and Parkway Life REIT. Let's see the details.

  • Price Range = $0.88 - $0.97
  • Yield = 8.46% - 9.10% (It will be 5.98% to 6.60% if there is no distribution wavier for sponsor units)
  • Assets Per Unit = $1.134  (Based on maximum price)
  • Liabilities Per Unit = $0.212  (Based on maximum price)
  • Secured NAV = $0.922 (Based on maximum price)
The catch is that there is a distribution wavier for Sponsor Units which propels its yield to a high of 8.46%. This distribution wavier will cease on 31st March 2014, giving us about 15 months of extra distribution. 

Another plus point is that its liabilities does not include any long-term debt. Their short-term debt is minimal. This result in its high secured NAV which is almost 100% of its IPO price.

A few issues to consider for this. It is an Indian Business Trust which brings us back to the days where Indiabulls Properties International Trust is listed. It went downhill since IPO and is trading at a very low price with negative cashflow despite having a sponsor. It has a colourful IPO Prospectus which until now cannot be delivered. Thus, I am not confident with Indian assets. 

I will be looking at its final pricing to decide whether to subscribe to this but currently, I am not keen. Maybe we need a success story to tell before we can be more confident.

2 comments:

  1. This sounds interesting, but for now I'd reckon its' probably one to stay away from. Just too much uncertainty with assets in India, quite correct.
    agriculture investments

    ReplyDelete
  2. Please remember to compare against Ascendas India Trust. Having and doing businesses in India are not all bad.

    ReplyDelete