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, March 2, 2015

Analysis of Macquarie International Infrastructure Fund (Miif)

Current Price on 26th Feb 2015 = $0.097
  • Yield = 9.28%  
  • Price-to-book Ratio = 0.776
  • Assets per unit = $0.132
  • Debt per unit = $0.007 (including current liabilities)
  • Gearing = 5.4%
  • Secured NAV = $0.125 (128% of trading value)
Macquarie International Infrastructure Fund is one counter which consist of only one asset i.e. an expressway in China and is in the process of looking at opportunities to divest and wind up the company. They reported their results recently.

Since they have not sold it, I am going to take it that it will continue to exist. And its yield is quite good at 9.28%. Since it is going to wind up soon, we look at the NAV which shows very good sign. Firstly, price-to-book ratio is only 0.776. This means we are looking at about 22% discount. Moreover, it does not really have debt so it is fully owned by you. Thus the Secured NAV is 128% of the trading price.

I believe that they are trying very hard to sell at a fair price so I am going to assume that their NAV is $0.125 and I am going to get $0.125 per share back. Thus, I believe this is going to be a good deal to earn 22% more in capital. Even if they take longer to wind up, they will still need to pay dividends which is currently at 9.28%.

Patience is the key and I am considering putting money into this. If it does not wind, good. If it winds up, it should be better.

2 comments:

  1. bro its ROE is -ve. may not be a good idea. just to let u know

    ReplyDelete
  2. They sold their business at a lower price than expected.

    ReplyDelete