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, May 15, 2017

Analysis of Accordia Golf Trust

Current Price on 28th Apr 2017 = $0.765
  • Yield = 8.26%  
  • Price-to-book Ratio = 0.756
  • Assets per unit = $2.20
  • Debt per unit = $1.188 (including current liabilities)
  • Gearing = 54.0%
Accordia Golf Trust is one of my anchor investments with high yield at very low discount to NAV when I purchased 100,000 shares at $0.63. It has since risen to this price which I am enjoying a paper gain. Let's take a look at the statistics again.

With a yield of 8.26%, it is still attractive although it is close to my minimum of 8%. Their price to book ratio is 0.756 which means we are still buying at 25% discount to NAV which seems very attractive. Their gearing is quite high though at 54% although not all of them are loans.

One of the issues is that they are all in Japan and we are exposed to currency fluctuations between Singdollar and Japanese Yen. So that is another risk that we would have to take if we invest in it. Well, I am taking the risk.

With this as an anchor investment, it is always on my radar but I won't be adding more as of now.

1 comment:

  1. I have a small stake in the trust but I will not add on anymore. Its current liabilities is higher than its current assets. If even the company is able to re-finance its term loan which is due this coming Aug, it current asset ratio is only 0.61.