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.

Tuesday, July 28, 2015

Analysis of Viva Industrial Trust

Current Price on 24th July 2015 = $0.81
  • Yield = 9.13%  
  • Price-to-book Ratio = 0.974
  • Assets per unit = $1.403
  • Debt per unit = $0.572 (including current liabilities)
  • Gearing = 40.7%
  • Credit Rating = BB
Viva Industrial Trust reported their results on Friday which is pleasing to me as I am vested with 79,100 shares worth $64,000. Let's look at the statistics.

Yield is at a high of 9.13% which is probably one of the highest in the market. Only Accordia Golf Trust and IREIT Global REIT has higher yields. Moreover, due to the major increase in valuation of TPCC in their portfolio (an increase of $100 million), price-to-book ratio has fallen to 0.974 which is below the critical value of 1. This means that we are buying at a discount to NAV which is fantastic.

One thing to note is that their credit rating for both the trust and its MTN has been downgraded to BB and BB+ respectively. Downgrade means that its credit profile is not doing well although the downgrade is not major. Nevertheless, there is an impact on interest rates should they decide to raise funds or secure debts.

I am heavily vested and I am glad that I have managed to participate in the private placement which I manage to make a paper profit (I bought it at $0.793). However, to place $64,000 in Viva Industrial trust is something which I will ponder for a while as it may be a bit too much. May pare down a bit and transfer to something else.

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