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.

Tuesday, February 14, 2017

Analysis of Soilbuild Business Space REIT

Current Price on 27th Jan 2017 = $0.64
  • Yield = 9.81%  
  • Price-to-book Ratio = 0.887
  • Assets per unit = $1.224
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 41.0%
  • Credit Rating = Baa3
Soilbuild Business Space Trust has published their results which caught my attention. Also because recently I haven't been looking at it and when I glance their results, I realize that I have missed this great opportunity. Let's take a look at the statistics.

With a yield of 9.81%, it is probably one of the highest yielding REIT in Singapore, probably the highest now among the industrial REITs. Sabana REIT, AIMSAMP Industrial REIT, Viva Industrial Trust has all risen or executed some rights issue. So now is this one. With a price-to-book ratio of 0.887, we are buying at a slight 11% discount, very similar to Viva Industrial Trust. More importantly, it has a credit rating of Baa3 which is considered investment grade and quite good.

Soilbuild Business Space Trust presents a very good opportunity for those who still does not have exposure to industrial REITs in Singapore. For me, I am heavily subscribed to AIMSAMP Industrial Trust, Sabana REIT and Viva Industrial Trust. If I were to invest in it, I may need to unload AIMSAMP to invest in them.

No comments:

Post a Comment