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, January 21, 2013

Analysis of Cambridge Industrial Trust

Current Price on 17th Jan 2013 = $0.685

  • Current Yield = 7.18%  
  • Price-to-book Ratio = 1.059
  • Assets per unit = $1.073
  • Debt per unit = $0.426 (including current liabilities)
  • Gearing = 39.7%

Cambridge Industrial Trust has reported their results which place their yield at 7.14%. This place CIT at the third place behind Sabana REIT and Religare Health Trust. Its price-to-book ratio is at 1.059 which is quite decent considering that there are not many REITs trading at a discount to its NAV. Gearing is at 39.7% and debts in 2013 will be repaid with cash that they have.

With the current extraordinary climate of ultra-low interest rates and lots of printing of money (from foreign countries), I am looking closely at the valuation of the properties as I believe there is room for appreciation because of the inflation that is being pushed by other countries. But this got to wait until the official valuation report to come.

I am vested with 52,900 shares in Cambridge. According to my criteria, I should be getting ready to sell but there is really not much options left in the market so I am holding on to this. It is appreciating anyway so enjoying the rise.

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