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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.

Tuesday, January 2, 2018

Analysis of Viva Industrial Trust - Price is too high?

Current Price on 1st Jan 2018 = $0.935
  • Yield = 8.13%  
  • Price-to-book Ratio = 1.184
  • Assets per unit = $1.37
  • Debt per unit = $0.58 (including current liabilities)
  • Gearing = 42.3%
  • Occupancy = 89.8%
I chose to analyze one of my oldies in my portfolio which is Viva Industrial Trust. Just realize that I have not been writing about them since May last year although I have been monitoring. Well, it is a good time to look at it again since the price went up so high and to be frank, I lost a chance to sell it at $0.99

Yield is at 8.13% which is quite high among the REITs currently. However, their valuation is very low and thus, their price-to-book ratio is at 1.184 which means we are buying at 18% premium which is a red flag. Gearing is at 42% which is still quite high.

I am vested with 87,100 shares and have been enjoying the dividends since 2015. However, I am beginning to feel the uneasyness holding on to properties at such a high premium. I am not sure whether I shall continue to hold, and will be looking at counters with better metrics.

Looking at ESR REIT, LMIR, Dasin Retail Trust and Asian Pay Television Trust

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