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.

Thursday, April 2, 2015

Analysis of IREIT Global

Current Price on 27th Mar 2015 = $0.78
  • Yield = 8.57%  
  • Price-to-book Ratio = 1.095
  • Assets per unit = $1.091
  • Debt per unit = $0.378 (including current liabilities)
  • Gearing = 34.7%
Recently, I have been asked about IREIT Global which I have a lot from its IPO. The price has fallen by a lot since its IPO and their statistics seems favourable now.

8.57% yield is probably one of the highest in the market. Bear in mind that we still need to adjust to the falling Euro so I am not optimistic about it (even though they have hedge it). I made the adjustments on the assets and debts and found that the price-to-book ratio is at 1.095. It means we are paying 10% premium. I think it is still too high.

Although the yield is 8.57%, I am not keen until the situation of Euro stabilizes.

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