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.

Friday, May 13, 2016

Analysis of Manulife US REIT IPO - A proxy for US Properties?

IPO Price = US$0.83
  • Yield = 6.76%  
  • Price-to-book Ratio = 1.059
  • Assets per unit = $1.286
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 39.0%
Finally we have a REIT IPO in our midst for listing. And this is unusual because this is going to be the first US REIT listed in SGX. Let's look at the statistics.

With a yield of 6.76%, I don't think it is that exciting. However, it is comparable to most office REITs like Suntec REIT or Capitaland Commercial Trust and which have most of their properties in Singapore. Their price-to-book ratio is not exciting as well, pricing it as one of the most expensive (but comparable to IREIT Global which is investing in European properties.) Gearing is at 39.0% which is quite close to the max.

Thus, I wonder why they are able to price it at the top end of their indicative range which shows that there is a demand for such properties. Maybe it is US-based which I have no knowledge about, especially their valuation process and also the yield. What I know is that US$ is still on the rise (although very slowly) so there is a currency advantage.

Since it is priced at the top end, I am going to assume that there is a lot of demand which is going to push the price up. If I manage to get hold on to some shares, I may just sell it off quickly at a profit.

2 comments:

  1. Is this SGx listed US reits dividend taxable?

    I read that the dividend gain in US is 30% taxable for alien investor.

    ReplyDelete
  2. I also have the same questions.

    ReplyDelete