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 $4,200/month.

Wednesday, November 26, 2014

Changes to my Portfolio (Selling AIMSAMP Industrial Trust and Buying Viva Industrial Trust)

Just to share with you some of the changes that I have made over the past week.

I have sold 20,000 shares of AIMSAMP Industrial REIT at $1.445 per share last week. Well, after I have sold it, it has moved up to $1.46 which means I have earned about $300 lesser. Haiz... Was waiting for it to move up but did not manage to wait until then. But it is still good as I have earned a capital appreciation of about $4,000. To me, this is always a bonus.

Using this amount of money (about $29,000), I have moved it into Viva Industrial Trust, buying 36,000 shares at $0.80 each. From my earlier post, they have just acquired two properties which will increase their yield to 9.44%, something which I like. Moreover, they have quietly announced that they will be doing AEI on their Technopark@Chai Chee which is currently their worst performing asset. With the reconfiguration of "white space", they are expecting the asset value and yield returns to move up. While we won't be enjoying the yield upside because of the income support system, what's more important here is the increase in NAV. However, there is no details as of now so not very sure what is the impact.

With the reconfiguration, here is my portfolio.

AIMSAMP Industrial Trust - 20703 shares + 780 scrip dividend worth $31,000
Global Investment Limited - 563078 shares worth $79,957
Viva Industrial Trust - 36,000 shares worth $28,800
Sabana REIT - 1,000 shares worth $970
IREIT Global - 1,000 shares worth $890

Yield = 8.835%
Monthly income = $1,160

Total Assets = $222,085
Total Liabilities = $46,490
NAV = $175,595
Market Value = $141,644 (excluding CPF Investment)
Market-to-NAV = 0.8068

Secured NAV = $102,527 (72% of market value)


5 comments:

  1. Not sure if you have addressed this previously but any reason why you wanted to only focus on Reits (or prooperty counters)?

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    Replies
    1. Hi B,

      The reason is that it is simple to understand. You buy properties, rent it out, and collect the rent. You got a property manager to manage it for you and they do the rest. I just like the business model and I don't have to make a lot of effort to understand them. :-)

      Delete
  2. hi,
    I enjoy your blog.Thanks.
    Not sure why u went to Viva
    See this

    https://sg.finance.yahoo.com/news/chart-day-singapore-industrial-landlords-020200619.html

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  3. Hi darkavgr,

    Thanks for the article. Very interesting reading. The next round of revaluation would be interesting to watch.

    ReplyDelete
  4. Hi, may I know what is "Secured NAV"? Thanks

    ReplyDelete