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 $4,200/month.

Monday, February 3, 2014

Analysis of Mapletree Greater China Commercial Trust

Current Price on 24th January = $0.81
  • Current Yield = 7.50%  
  • Price-to-book Ratio = 0.854
  • Assets per unit = $1.704
  • Debt per unit = $0.754 (including current liabilities)
  • Gearing = 44%
  • Secured NAV = $0.949 (117%)

MGCCT has reported its results which to me is good. Yield is at a high of 7.50% which is one of the highest among the Office REITs and Retail REITs. 7.50% is also my "yellow" threshold which I will consider seriously if other factors are strong.


Price-to-Book ratio is also at 0.854. This means that if I buy at current price, I will be getting it at a 15% discount. As it uses unsecured loans, its secured NAV is 117% which is one of the highest in SREIT as well.

One worrying point is its gearing which is high at 44%. Considering that it has a debt rating and it is investment grade, I don't think we should be too worried about it.

I am vested with 6,000 shares which I got during its IPO. Still enjoying its dividend although I have lost in capital depreciation. I am still looking around shopping for REITs.

2 comments:

  1. Thank you for your write ups in the reits. I am a greenhorn to investing, where or how do you source for the Book Value of these reits so as to determine the PB ratio?

    ReplyDelete
  2. Hi Justin,

    Book Value is published in their report. Thus, the ratio is the market price divided by the NAV.

    Hope it helps.

    ReplyDelete