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, May 26, 2014

Analysis of Ascendas Hospitality Trust

Current Price on 21st May 2014 = $0.74
  • Current Yield = 7.79%  
  • Price-to-book Ratio = 1.133
  • Assets per unit = $1.118
  • Debt per unit = $0.465 (including current liabilities)
  • Gearing = 41.6%

Ascendas Hospitality Trust has reported their results recently which is a dip in their distributions. Current yield is at 7.79% which is an optimistic number. If we were to use 1.21 cents per quarter, it will be 6.54% which is not favourable at all. Moreover, its price-to-book ratio tells me that we are buying at a premium. 13% to be exact. Gearing is also quite high at 41.6%

Using my criterias, they have failed all of them. I am quite surprised that the yield went down by a lot because normally it does not drop that much. Maybe because it is hospitality and not rental income.

All indicators tells me that this is not a counter to enter. I will not consider it.

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