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.

Friday, October 25, 2013

Analysis of Rickmers Maritime Trust

Current Price on 22nd October 2013 = $0.29
  • Current Yield = 10.18%  
  • Price-to-book Ratio = 0.375
  • Assets per unit = $1.562
  • Debt per unit = $0.788 (including current liabilities)
  • Gearing = 50.5%

Rickmer Maritime Trust has reported its results which is more or less the same as all the other quarters. They are distributing US 0.6 cents which translate to 10.18% yield which is quite good. Moreover, its price-to-book ratio is still at a very low rate of 0.375. Just note that they are vessels which depreciates a lot faster than properties in REITs.


Rickmer Maritime Trust (and some of other trusts) have run into problems earlier which result in negotiations to repay the debt slowly and having some conditions attached to it. My take is that whatever negative news and conditions has already been priced in. Therefore, this looks like a fair price.

Its yield look very promising so I am thinking of transferring some of my investment into this. But not too much as there is still risk involved.

2 comments:

  1. I had a look at this counter but still decided not to touch. Bank loan amount and Chartered rate is the issue.

    ReplyDelete
  2. For the hottest stock in US REIT please visit my blog Realestatecritics.blogspot.com

    ReplyDelete