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.

Wednesday, May 3, 2017

Analysis of Viva Industrial Trust

Current Price on 28th Apr 2017 = $0.815
  • Yield = 9.08%  
  • Price-to-book Ratio = 1.029
  • Assets per unit = $1.374
  • Debt per unit = $0.582 (including current liabilities)
  • Gearing = 42.3%
  • Occupancy = 91%
Viva Industrial Trust has published their results which is very favourable and has caused their price to increase to $0.815. Their price has been steadily increasing for a while already so have to look at the statistics again.

Yield is currently at 9.08% which is still very high at current standards. Moreover, with occupancy at 91%, there are still some room for further organic growth in yield but not a lot. However, one indicator which is getting not as good because of the rise in trading price is their price-to-book ratio. It is not at 1.029 which means we are buying at a premium. Compared to Sabana REIT, Cambridge Industrial Trust, AIMSAMP REIT and EC World REIT, it is no longer attractive. These REITs are still trading at a discount to NAV. Gearing is at 42.3% which is ok.

This is one of the REITs which I bought when it is still trading at a discount to NAV and it has risen. I am vested with 87,100 shares and I will be enjoying about $1,600 worth of dividends. Moving forward, I will be looking at other counters to see whether I need to unload and switch to another counter.

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