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.

Wednesday, May 4, 2016

Analysis of Viva Industrial Trust

Current Price on 3rd May 2016 = $0.73
  • Yield = 8.98%  
  • Price-to-book Ratio = 0.90
  • Assets per unit = $1.363
  • Debt per unit = $0.552 (including current liabilities)
  • Gearing = 40.5%
  • Occupancy = 86.9%
Viva Industrial Trust is one counter which I monitor closely because I am holding on 79,100 shares worth about $57,000. With the current announcement, let's take a look at the statistics.

Yield is at 8.98% which is quite ok in my opinion. One of the higher yields among the industrial REITs but not the highest. Cache Logistics Trust is higher. Their price-to-book ratio is at 0.900 which means that we are buying at 10% discount. This becomes tricky because there are others like Cambridge Industrial Trust, Sabana REIT which are much cheaper. Gearing is at 40.5% and their debt rating is at Ba2 equivalent.

I have included occupancy in the statistics from now on just to reflect assets which are not generating income. At 86.9%, it is probably one of the lowest among the REITs, even lower than Sabana REIT which is perceived to be in trouble due to falling occupancy. I would say that their occupancy is quite stable and there is potential room for growth in tenancy.

I am still holding on to this, but may pare down to reduce risks due to single counter. Some REIT must come with better statistics for it to happen.

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