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.

Thursday, April 10, 2014

Analysis of Global Investment Limited (Non-REIT)

Current Price on 9th April 2014 = $0.142
  • Current Yield = 10.56%  
  • Price-to-book Ratio = 0.628
  • Assets per unit = $0.236
  • Debt per unit = $0.010 (including current liabilities)
  • Gearing = 4%
  • Secured NAV = $0.164 (115%)

Global Investment Limited is one of my anchor investment with slightly more than 400,000 shares worth about $56,000. I chose to invest heavily in this because of its high yield of 10.56%, zero debt, very low price-to-book ratio (37% discount) and a high secured NAV which is 115% of its trading price.

In February, they announce their scrip dividend issue which I have participated. For a total of 363,737 shares, I have obtained about 40,855 shares worth of dividend. If I divide 40855 by 363737, it translates to a yield of 11.5% which is much higher than the current yield. Thus, it became more favourable to me as a long-term investor with compound interest.

I continue to look at this investment with great interest and it is still likely that I will continue to invest in it although I am also wary not to be overly invested in one counter.

No comments:

Post a Comment