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 $3,800/month.

Friday, November 13, 2015

Analysis of AIMSAMP REIT - An organic growth story

Current Price on 7th Nov 2015 = $1.35
  • Yield = 8.30%  
  • Price-to-book Ratio = 0.874
  • Assets per unit = $2.337
  • Debt per unit = $0.792 (including current liabilities)
  • Gearing = 33.9%
AIMSAMP REIT has released their results and also went XD.  Thus, their price went down by a bit. Let's take a look at the statistics.

Yield is at 8.30% which is quite healthy, higher than the big boys like Ascendas REIT but lower than smaller players like Sabana and Viva Industrial Trust. Price-to-book ratio is at 0.874 which means we are buying at about 12.5% discount. It is a small Christmas sale. Gearing is at a safe 33.9%.

I have always view this as a growth REIT because they have a lot of properties which can be redeveloped to maximise their plot ratio. You can see that every now and then, there will be at least one property undergoing redevelopment which helps to enhance the value of our investments. In short, there is a lot of opportunities for growth rather than to compete for acquisition and it is almost a sure-win bet everytime they redevelop. Thus, even if the yield is slightly lower, it is still worth it to hold.

I do have 11,600 shares which is placed in my CPF investment account. Earlier I have sold all of my cash holdings and switch it to another counter (Viva Industrial Trust). I will hold on to what I have in my CPF investment account to continue to enjoy the growth.

** A reader pointed out that it is called Organic growth instead of inorganic growth. My bad and thanks to my reader :-)***

3 comments:

  1. Is organic growth not inorganic growth. Organic growth means grow from within. Inorganic growth means grow from outside ie acquisition.

    ReplyDelete


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  3. Even if there are organic growths, the properties might be in short term lease (for Singapore JTC land) and the development costs can be huge. So at the end it is one pocket in (dividend) and one pocket out (more funding). This is a game for reit.

    ReplyDelete