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 $3,300/month.

Thursday, June 13, 2013

Analysis of AIMSAMP REIT

Current Price on 7th Jun 2013 = $1.67
  • Current Yield = 7.52%  
  • Price-to-book Ratio = 1.087
  • Assets per unit = $2.091
  • Debt per unit = $0.554 (including current liabilities)
  • Gearing = 26.5%
  • Secured NAV = $0.659 (39.5%)
AIMSAMP REIT recently fell to one of its lowest level at $1.67 which helps to increase its yield to 7.52%. Moreover, it has recently announce its redevelopment plans which is yield accretive and NAV accretive as well. According to estimates, it will increase its yield to 7.94% which is very high and close to my criteria.

Its price-to-book ratio is unfortunately still at a high of 1.087. But with its recent private placement and debt repayment, its gearing is at a healthy 26.5% which is arguably the lowest among the industrial REITs (comparing with Cambridge Industrial Trust, Cache Logistics Trust and Sabana REIT). Secured NAV is at 39.5%, not very high but encouraging.

Most indicators seems very healthy for AIMSAMP REIT. I do have some cash for investment and it seems that I am going for this to enhance my portfolio yield. Moreover, I believe that there are more redevelopment coming in which helps to enhance its yield and NAV, a strategy which other REITs are less likely to do.

2 comments:

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    Replies
    1. Hi Rainbow,

      Many thanks for your encouraging comments. :-)

      Delete