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 22, 2017

Analysis of OUE Commercial Trust

Current Price on 10th May 2017 = $0.71
  • Yield = 6.17%  
  • Price-to-book Ratio = 0.829
  • Assets per unit = $2.245
  • Debt per unit = $1.388 (including current liabilities)
  • Gearing = 61.8%
OUE Commercial Trust has been in my portfolio for two years now with about 30,300 shares. It has generated two years of return and I am also sitting on a 10% capital gain. Let's take a look at the statistics.

With a yield of 6.17%, it is currently very low according to my criteria of 8%. But the good thing is that its price to book ratio is 0.829 which means I am buying at 17% discount even at current price. Gearing is at 61.8% because I have considered perpetual securities as loans instead of equities.

OUE Commercial Trust has served its purpose of helping me to diversify into Office REITs and their price has moved to a position where there is no reason for further improvement. I am looking at unloading this and looking for something else to put in.

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