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.

Monday, November 14, 2016

Analysis of Far East Hospitality Trust - Cheapest REIT?

Current Price on 12th November 2016 = $0.60
  • Yield = 7.47%  
  • Price-to-book Ratio = 0.646
  • Assets per unit = $1.394
  • Debt per unit = $0.465 (including current liabilities)
  • Gearing = 33.4%
Far East Hospitality Trust just reported their results which sort of caught my interest and made me consider adding them into my portfolio. Let's take a look at the statistics.

Yield is at a modest 7.47% which is quite comparable to other hospitality trust. However, their price-to-book ratio is 0.646, making them the cheapest hospitality trust in SGX. They are also the second cheapest REIT in SGX considering all sectors. Only Sabana REIT is cheaper. With a gearing of 33.4%, it looks quite safe.

Of course, the revenue is really dependent on the tourism and this is a pure-Singapore play. To be frank, I like Singapore play REITs since I live here and I am able to monitor the situation better. With such cheap REITs going on, I will consider seriously to add this into my portfolio.

1 comment:

  1. The PE ratio is about 40+, hence I'm apprehensive about its prospects