S-REIT Investment Blog: Analysis of AIMS AMP Industrial Trust

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 $3,800/month.

Friday, August 1, 2014

Analysis of AIMS AMP Industrial Trust

Current Price on 31st July 2014 = $1.485

Yield = 6.87%
Price-to-book Ratio = 1.000
Assets per unit = $2.311
Debt per unit = $0.826 (including current liabilities)
Gearing = 35.8%
Secured NAV = $0.552 (37%)

AIMS AMP Industrial Trust has reported its results which is within the expected range. DPU has risen by a little bit and NAV also increases by 1 cent which is good. Another plus point is its updates on their redevelopment efforts which has been fantastic, achieving TOP way early and below expected development cost. Thus, the value creation that it has for us (in NAV terms) will continue to increase.

However, price has went up recently as well, moving up to $1.485 which resulted in current yield at 6.87%. I am expecting DPU to increase by 10% in the next 6 months following the TOP, thus, giving about 7.5% yield by the end of the year. It is within my holding range of 7 - 8% yield. Moreover, they are already trading at close to 1 for price-to-book ratio which makes it unattractive.

AIMS AMP Industrial Trust has served me well in terms of enhancing the value of my investment and its high yield which contributes to my cashflow and investments. It may be time to call it to an end if it continues to move upwards. (which hasn't since their announcement). I will be lining up to sell at around $1.495 - $1.50 price range and look for alternative investment. (By the way, I am considering Viva Industrial Trust)