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.

Wednesday, August 6, 2014

Analysis of Viva Industrial Trust

Current Price on 1st Aug 2014 = $0.82
  • Yield = 8.40%  
  • Price-to-book Ratio = 1.09
  • Assets per unit = $1.273
  • Debt per unit = $0.521 (including current liabilities)
  • Gearing = 40.9%

Viva Industrial Trust has reported its results on 31st July which has given me mixed feelings. The yield is at a high of 8.40% which I think is very good. It is the highest among the REITs in Singapore, and it fulfills my criteria of 8%.

However, its price-to-book ratio is also at a high of 1.09 which means we are paying a premium of 9% more than we should. Moreover, there is no secured NAV to talk about and its credit rating is not at investment grade either (BB+).

8.40% is really attractive and I won't get anything near for other REITs. But the price-to-book ratio is also too high for me. I am giving this a miss this time round and look for those with 7+% yield and discount to NAV.

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