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.

Thursday, August 13, 2015

Analysis of Global Investment Limited - A "savings account" with 9.93% interest

Current Price on 8th Aug 2015 = $0.151
  • Yield = 9.93%  
  • Price-to-book Ratio = 0.719
  • Assets per unit = $0.217
  • Debt per unit = $0.007 (including current liabilities)
  • Gearing = 7.15%
Global Investment Limited reported their results which I needed to look into very closely. Here are the statistics.

Yield is stable at 9.93%. With scrip dividend, it may rise to 11.46% if their issuing price is $0.13. Moreover, their price-to-book ratio is at 0.719 with no debt. Thus, we are only looking at the quality of assets which the bulk is in equities and bonds. Thus, it looks like we are investing in a unit trust than a company.

One thing to note is that amount of profit vs the amount used to distribute dividends. Currently their overall profit is at $9.7 million and their dividend distribution is $10.4 million (even though most will be in scrip). This is something which I am concern about because they are slowly not able to generate enough profit to maintain their distribution. I hope that the profit can be higher than distribution.

I am highly vested with 595,000 shares and I will be collecting $4,400 worth of dividends. I am participating in scrip dividend which should give me an extra $500. I am, at this point, still holding on to long term.

6 comments:

  1. What do u mean by participating in scrip dividend?

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    Replies
    1. It is call Dividend Reinvestment Plan where you get your dividends in shares rather than cash.

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  2. So if we get our dividends in shares, how can we sell the odd shares? Minimum suppose to be 100

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    Replies
    1. Good question! For those odd shares, I usually keep it as memento. You can also sell it at the unit market.

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  3. What is a unit market and where is it? Sorry for my ignorance.

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    Replies
    1. Hi Yori,

      You may want to ask your stock broker instead. They should have their own platforms to resolve this. :-)

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