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.

Monday, March 23, 2015

Updates on my Current Holdings

Ever since I posted that I will be selling my holdings, I have received a number of responses and I would like to thank all those who have contributed so that we can learn from each other.

I have tried to sell at a price which I am comfortable with so I did not manage to sell off all at this point. I only manage to sell AIMSAMP REIT at $1.46 (I was lucky). However, I did not manage to sell Viva Industrial Trust. With that, I netted about $31,000 (with a total capital profit of $2,800)

With only two major holdings i.e. about $80,000 in Global Investment Limited and about $30,000 in Viva Industrial Trust, it prompts a rethink of my earlier decision. When interest rates rises (eventually), the first thing that will happen is that NAV will drop. In my opinion, it will drop by about 4% which is similar to my earlier estimate. However, for REITs which have exposure to loans, the drop will be even greater since the cost of loan will increase. In my opinion, even if they hedge their loan, eventually they will need to refinance and that has an impact.

Thus, the impact on Global Investment Limited will be lesser than Viva Industrial Trust since Global Investment Limited has no debts. Moreover, they are already trading at a big discount to NAV so the impact will be even lesser. For Viva Industrial Trust, the impact will be higher since its gearing (including other liabilities) is 46.7%.

Thus for this week, I will continue to try to sell Viva Industrial Trust but I will keep Global Investment Limited for the time being until there are new information.

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