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 27, 2013

Purchase of AIMSAMP Industrial REIT and LMIR

With the extra cash that I have raised from selling off Keppel REIT and Saizen REIT, I need to look at other REITs to buy so that my money is put into good use. Previously I have made two analysis of AIMSAMP Industrial REIT and LMIR and I said that I will consider buying them. I have made the decision to purchase both to increase the yield of my portfolio as well as NAV and secured NAV.

AIMSAMP Industrial REIT

With the extra cash that I have raised from selling off Keppel REIT and Saizen REIT, I made a purchase of 8,000 shares of AIMSAMP Industrial REIT at $1.60 to increase my holdings to 33,975 (including the latest DRP). I believe there is a lot of room for growth in its portfolio through redevelopment instead of acquisition. Thus, its growth is more secured and visible. Its distribution and NAV will continue to grow so I choose to purchase even though its price-to-book ratio is at 1.041. With this purchase, AIMSAMP Industrial REIT becomes one of my key investment (with portfolio worth more than $50,000)

Lippo Malls REIT

With the extra cash that I have raised from selling off Keppel REIT and Saizen REIT, I have also made a purchase of 47,000 shares of LMIR at $0.475 to increase my holdings to 114,000. I went for value instead for this REIT because of its strong yield at 7.49%, price-to-book ratio at 0.833 and secured NAV at 85% ($0.40). Lippo Malls REIT also have a record of acquisition at discount to valuations which fits my style. With this purchase, Lippo Malls also becomes one of my key investment (with portfolio worth more than $50,000)

With these purchase, my current annual distribution yield is about $15,500 which works out to $1,290 per month. I have included rights subscription of Global Investment Limited which is on the way. It is great knowing that every quarter, there is going to substantial extra cash for me either to reinvest or to spend on necessities at home.

2 comments:

  1. good post. but reits have the risk of raising cash from the shareholders and there is a limit as to how high the dpu can possibily go amidst current economic situations.

    visit my blog now


    http://paulcokefreedom.blogspot.sg

    ReplyDelete
  2. This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather knowledge.

    Elektrownia sloneczna

    ReplyDelete