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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.

Monday, August 15, 2016

Analysis of Soilbuild Business Trust - Gaining Attention

Current Price on 14th August 2016 = $0.665
  • Yield = 9.41%  
  • Price-to-book Ratio = 0.842
  • Assets per unit = $1.305
  • Debt per unit = $0.515 (including current liabilities)
  • Gearing = 39.4%
Soilbuild Business Trust recently caught my attention because of its pricing. It now ranks close to Sabana REIT and Viva Industrial Trust in terms of yield and price-to-book ratio. Let's look at the statistics.

The yield is currently at 9.41% which is quite attractive. It is also quite comparable to Sabana REIT (at 9.55%) and Viva Industrial Trust (at 9.52%). Its price-to-NAV ratio is at 0.842 which means you are buying at 15% discount to their valuation. While it is not really comparable to Sabana, it is higher than Viva Industrial Trust. Gearing is at 39.4% which is quite manageable.

On my hand, I have some investments in AIMSAMP Industrial Trust which has recently moved up in price. Although it is good, the statistics may not be favourable anymore so I am looking at something else to change it to and this is definitely one of my options which I am evaluating now. I already have exposure in Sabana and Viva so may want to think of diversifying. However, I am heavily exposed to industrial REITs so this would also be one of the considerations as well.

2 comments:

  1. What do you thin about Accordia Golf Trust (SGX:ADQU) ? It's my favorite :-)

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