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.

Wednesday, August 7, 2013

Analysis of SoilBuild REIT (IPO)

IPO Price = $0.78
  • Current Yield = 7.50%  
  • Price-to-book Ratio = 0.98
  • Assets per unit = $1.165
  • Debt per unit = $0.369 (including current liabilities)
  • Gearing = 31.7%
SoilBuild REIT has been launched with a long IPOing period due to the holidays. Let's take a look at the statistics.

SoilBuild REIT has a good yield of 7.50% although there are better in the market e.g. Sabana REIT which is trading at 8.5%. Moreover, its price-to-book ratio is below one which is good. Cambridge is also trading at this level currently. Gearing is at 31.7% which is healthy. Overall, it seems ok.

Nevertheless, it is not priced at the top end of $0.80 which means that there is not enough demand. However, it is also not priced at the lowest end of $0.77 which means $0.78 is quite fairly valued. I won't be applying for this IPO because I know that it will not move beyond its IPO price. (like what happened to OUE Trust which is trading at $0.88). 

1 comment:

  1. Looks like Mr Market is not bullish on this REIT for now with the price of it falling to a intra day low of 71 cents today...