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.

Thursday, November 30, 2017

Analysis of Global Investment Limited - Dividends dropping?

Current Price on 29th Nov 2017 = $0.145
  • Yield = 8.28%  
  • Price-to-book Ratio = 0.741
  • Assets per unit = $0.205
  • Debt per unit = $0.009 (including current liabilities)
  • Gearing = 4.4%
  • Secured NAV = $0.196 (135% of trading price)
Global Investment Limited has recently gave a report and an announcement which is not really good for income investors like myself. Their distribution has dropped to 0.6 cents per half year which is a drop from 0.65 cents and 0.75 cents earlier. Here is the analysis.

With a yield of 8.28%, it is still one of the highest yielding investment holding companies which I rank it with REITs and business trusts. However, there are better yielding trust like Dasin Retail Trust and Asian Pay Television Trust. Even LippoMalls Indonesia Trust is trading at higher yield so it has lost its shine as an extremely high yield company. They have maintained zero debts which is extremely good for us as every asset is secured. Therefore, as they are currently trading at a discount to secured NAV, it means we are buying at a 26% discount which is almost guaranteed.

I am vested with about 1,073,000 shares worth about $155,000 worth of shares so I am receiving an annual return of $12,800 as dividends. Usually I convert into shares as usually they issue at a discount. And if I need the funds, I can sell and take cash although I have not done so so far. Will still be holding on to it.

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