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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 $4,200/month.

Wednesday, December 16, 2015

Analysis of Asian Pay Television Trust - 13.10% yield is high. Extremely high.

Current Price on 15th Dec 2015 = $0.63
  • Yield = 13.10%  
  • Price-to-book Ratio = 0.724
  • Assets per unit = $1.794
  • Debt per unit = $0.923 (including current liabilities)
  • Gearing = 51.5%
Asian Pay Television Trust recently has its trading price dropping by quite a lot to $0.63 which caught my attention as their yield will be improved. Let's look at the current statistics.

The yield is at 13.10% which is fantastic. It is the highest grossing yield play at the moment. Moreover, its price-to-book ratio is at 0.724 which means we are buying at 26% discount to net assets. Gearing is at a high of 51.5% which is actually quite dangerous.

One thing which is not favourable is the fact that its assets are depreciating, which means their assets per unit will drop theoretically. I am not very sure whether this is correct but this is how I understand. How fast the assets per unit drops depends on how fast the assets depreciates. Moreover, they need to raise cash to fund their capital expenditure which is much more than a REIT.

Nevertheless, I think it is already priced in at a 26% discount-to-NAV which I am actually very comfortable. Moreover, with a yield of 13.10%, the risk may just be worth it to take. Looking seriously into this.

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