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.

Monday, January 11, 2016

Analysis of Keppel REIT - Quality Office at a Bargain Price

Current Price on 8th Jan 2015 = $0.915
  • Yield = 7.43%  
  • Price-to-book Ratio = 0.648
  • Assets per unit = $2.309
  • Debt per unit = $0.897 (including current liabilities)
  • Gearing = 38.8%
Keppel REIT was once my anchor investments which has given me a great deal of rewards with strong yield and capital appreciation. Now I realize that it has fallen to a level which attracts my interest.

With a yield of 7.43%, it is not really fantastic although it is still quite high among the office REITs. But what attracts me is their price-to-book ratio which is at 0.648. This means we are buying at 35% discount to NAV which is quite a bargain. Compared to the largest office REIT which is Capital Commercial Trust, it is still about 10% cheaper. Gearing is at a healthy 38.8% which is not in danger.

The yield and price-to-book ratio caught my eye and I am willing to consider reinvesting into this counter since the statistics is quite good actually. Let's see if there are other good counters around first.

1 comment:

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