Welcome

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, September 11, 2017

IPO Analysis of Cromwell European REIT

IPO Price = Euro 0.57
  • Yield = 7.50%  
  • Price-to-book Ratio = 1.00
  • Assets per unit = Euro 0.828
  • Debt per unit = Euro 0.255 (including current liabilities)
  • Gearing = 31.1%
Finally we have a REIT listing in this second half of this year with a European REIT focusing on logistics. Let's take a look at the statistics.

With a yield of 7.5%, it look quite decent but there are other REITs which are local-based and able to deliver higher yield like Cache Logistics Trust, Soilbuild Trust, etc. Moreover, they are selling at market value which is not really attractive because there are other REITs which are trading at a discount. Some of these have moved to become premium REIT so the price may well just hold up. Gearing is at a comfortable 31.1%.

Do note that it is trading in Euros so there is currency risk, and European Central Bank is still printing lots of money so Euros may just continue to fall. While I thought this is decent, the currency risk doesn't help.

I will be taking a backseat on this REIT (I have been doing it for a while actually) and see whether the price hold up.

1 comment:

  1. Euro has been rising since March, well, the up momentum now is weaker though...

    ReplyDelete