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.

Wednesday, March 9, 2016

Rights Issue by OUE Hospitality Trust

Current Price on 9th March 2016 = $0.75
  • Yield = 9.06%  
  • Price-to-book Ratio = 0.827
  • Assets per unit = $1.577
  • Debt per unit = $0.671 (including current liabilities)
  • Gearing = 42.5%
OUE Hospitality Trust has announced their plans to acquire Crowne Plaza Changi Extension with equity rights issue. This is an opportunity to invest in a hotel REIT with high quality assets both in Orchard area and Changi Airport. Thus, if we invest, we are directly involved in the tourism sector in Singapore. Let's look at the statistics.

With a yield of 9.06%, it is one of the highest yielding hotel REIT. Only Frasers Hospitality Trust can match its yield. Moreover, the price-to-book ratio also suggest that we are buying at 17% discount to valuation price which I thought was quite favourable. (Info is before rights issue) Gearing is at 42.5%.

I am unable to aggregate the information as they merge the earlier acquisition of Crowne Plaza Changi Airport together with the extension which painted a slightly different picture from now. It looks like they are raising more cash and less debt so I am not really sure about their final yield and NAV which is quite a pity. Since they are raising more cash, I assume their yield will be at least the same or else the acquisition will not be beneficial to shareholders. Discount to NAV may drop but trading price should still stay below NAV.

I have been quietly looking at this REIT for some time and I think this is a good time to invest for long term. Will be investing in it.

14 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. This comment has been removed by the author.

    ReplyDelete
  3. why you remove the 2comments.?good or bad leave it alone unless it is vulgar

    ReplyDelete
    Replies
    1. Hi Klan,

      I did not delete it. The author deleted himself. I wonder what they wrote as well.

      Delete
  4. Price seems to have fallen quite a bit. Any ideas why?

    ReplyDelete
  5. I wonder why you deleted the 2 comments. What views do they take?

    ReplyDelete
    Replies
    1. Hi Winston,

      I did not delete it. The author deleted himself. I wonder what they wrote as well.

      Delete
    2. Hi Joseph,
      Thanks for your reply. I enjoy reading your Analysis on REITs & Business Trust.

      Delete
  6. Allow Me To Introduce ReputableHacker
    CONTACT: reputablehacker@gmail.com
    -Find Out If Your Husband/Wife or Boyfriend/Girlfriend Is Cheating On You
    -Let Us Help You Hack Any Website Or Database
    -Hack Into Any University Portal; To Change Your Grades Or Upgrade Any Personal Information/Examination Questions
    -Hack Email; Mobile Phones; Whatsapp; Text Messages; Call Logs; Facebook And Other Social Media Accounts

    ReplyDelete
  7. Hi I have a question. One of my relative have 17,000 pieces of OUE Hospitality Trust. She is entitled to apply for 5610 pieces of right issue (33 right issue for every 100 owned).

    The ATM displayed that she will have to pay $6058.80 to accept the 5610 right issue.

    My question is: Shouldn't it be ($0.54 x 5610)+$2 = $3,031.40?

    ReplyDelete
  8. I do not own any OUE Hospi Trust, just asking for my relative. Hope to hear from you soon! Many thanks!
    -Dominic

    ReplyDelete
  9. *Do you want a Computer hack, Mobile hack, server hack e.t.c.
    *Do you want to see what your husband/wife/boyfriend/girlfriend is doing behind your back?
    *Do you want to hack email/facebook/whatsapp/other social media?
    *Do you want to change your grades, hack university database or hack examination questions or job interviews
    contact benhacker127001@gmail.com

    ReplyDelete
  10. I was so confused before about getting proof of my partner cheating and lieing to me. Thanks for BLACK@ (worldspy86@yahoo.com) Whats-App ::+2349080939871 the great hacking job done such as :: (facebook, instagram, bbm,Skype, snapchat, twitter, badoo, Word Press,zoosk, various blogs, icloud, apple accounts etc.)-clearing of criminal records-email accounts hack ( gmail,yahoomail,hotmail )-breach of web host servers ,Databases Reach out to and he will help you. Tell him Shade

    ReplyDelete
  11. Should you ever require the services of a hacker, i implore you to try your very best to hire only professionals. hyperhacktive1@gmail.com will increase your chances of getting your job completed. i was able to hire the services of an elite, asides the fact that i was provided a permanent solution to the service he rendered me but he gave a very efficient customer experience. he carried me along with every process and didnt leave me in the dark.
    contact; hyperhacktive1@gmail.com

    ReplyDelete