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, July 21, 2014

Analysis of CapitaCommercial Trust

Current Price on 18th July 2014 = $1.71
  • Yield = 5.10%  
  • Price-to-book Ratio = 0.997
  • Assets per unit = $2.153
  • Debt per unit = $0.439 (including current liabilities)
  • Gearing = 20.4%
  • Secured NAV = $1.264 (73%)

CapitaCommercial Trust has reported its results which shows a different presentation. CapitaGreen and Raffles City debts are now not considered in its debt books. This is something which I don't really agree actually. The reason is that although if anything happens to RCS and MSO Trust would not affect its debt profile, it still does affect the valuation of its assets. 

CapitaCommercial Trust has consistently delivered for its unitholders both in distribution and enhancing its value. My concern is its trading price which is already quite high. Thus, its yield is consistently low at 5.10%. Moreover, its price-to-book ratio is already at 1 which does not offer incentive to purchase it anymore.

I will give it a miss as it does not achieve my criteria despite having stellar results. 

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