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 $4,200/month.

Thursday, June 30, 2016

Updates to Current Holdings

Hi everyone,

I realize that I haven't been updating you about changes to my portfolio which has seen quite a bit of activity actually. So here it is.

Manulife US REIT

I have subscribed to the IPO at US$0.83 which troubled me because I felt that I was misled by the pricing being priced at the top end of the range. I have sold it since and made a loss of about $600. It was a costly mistake to me as I also face foreign exchange losses. Lessons come at a cost. I just hope that it is not too high.

OUE Commercial REIT and OUE Hospitality Trust

I sold OUE Hospitality Trust because the statistics is no longer attractive although it is still around 8% but compared to other hospitality trust, some others are better. I sold it at $0.695 sometime earlier so I still earn about $600. With the money, I went into OUE Commercial REIT at $0.64 because of the confidence that the sponsor gave which lead it to subscribe to more shares at a higher price. Looks like it is a good buy as of now.

Sabana REIT

I bought 20,000 shares of Sabana REIT at $0.515 which is giving me a yield of more than 10% and with a price-to-NAV at a low of 0.582 which means I am buying at 42% discount. Some people will ask why should I enter a REIT that is currently going through challenging times. Well, if the challenging times is priced in, then it is a fair price isn't it. It is a risk. That's why the yield is high. If it is able to ride through, what do you think the price will go?

Other Expenses

I am shifting house soon so I needed to do renovation and also buying some new furniture. So I reserve some cash which will be used for this purpose. However, after thinking about it, we have decided to take a renovation loan and 0% interest instalment and use this money to into investments. Thus, you will be seeing two additional liabilities shown in the portfolio. As for the real cash, I will be depositing it into the investment account soon to pare down some of my margin debt and some as cash reserve. So here is the portfolio. :-)




3 comments:

  1. I'm looking at Sabana as well and though they have a good track record, their current financials isn't looking too good. The recent dipped makes it very attractive but is it really good for short-intermediate term(1-3yrs) as a div stock is still very difficult to tell.

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  2. so is sabana worth a buy.? I'm looking at both sabana and starhill global

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