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 $3,300/month.

Monday, January 19, 2015

Analysis of Cambridge Industrial Trust

Current Price on 16th Jan 2015 = $0.685
  • Yield = 7.31%  
  • Price-to-book Ratio = 0.968
  • Assets per unit = $1.128
  • Debt per unit = $0.420 (including current liabilities)
  • Gearing = 37.2%
  • Secured NAV = $0.186 (27% of trading value)
Cambridge Industrial Trust just reported its results recently which they have continued to maintain their performance. Here are the statistics.

Yield is at a modest 7.31% which is slightly lower than most industrial REITs. Price-to-book ratio is maintained at 0.968 which is good because it is trading at a discount to NAV. Gearing is healthy and there is a secured NAV of 27% of its trading value. This means that $0.186 is secured in the worst case scenario. Not the best in the market though.

Cambridge was the first REIT that I bought when I first started investing and held on to it for the longest period which is about 5 years. I sold all my holdings sometime in 2013 as I needed the cash for something else. Today as I look at the statistics, I think there are better ones out there with higher yield and safer margin of safety like AIMSAMP Industrial REIT, and SoilBuild REIT. I am still grateful for the dividends and capital appreciation that Cambridge has given me earlier.

3 comments:

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    Replies
    1. Hi Angels,

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  2. hi how exact do you calculate your secured NAV? thanks.

    ReplyDelete