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.

Monday, April 14, 2014

Analysis of SPH REIT

Current Price on 9th April 2014 = $0.995
  • Current Yield = 5.59%  
  • Price-to-book Ratio = 1.104
  • Assets per unit = $1.265
  • Debt per unit = $0.363 (including current liabilities)
  • Gearing = 28.7%
  • Secured NAV = $0.228 (23%)

SPH REIT is by far one of the most resilient REIT that I have ever seen. Since selling my IPO share at $0.98, the lowest it gets is about $0.97 which is beyond my expectation. Moreover, it continually priced itself at a yield which is one of the lowest among the retail REITs. Its price-to-book ratio is still at a premium of 10%.

Although it is resilient, I am not too sure why it is resilient. Even CapitaMall experienced price fluctuation along with the market. With its statistics, I am not keen to invest in it. It may be safe and good, but the pricing is not right.

I am looking at other REITs to place some of my money in instead of this.

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