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, April 9, 2018

Analysis of Asian Pay Television Trust - Extreme High Yield

Current Price on 5th April 2018 = $0.515
  • Yield = 12.62%  
  • Price-to-book Ratio = 0.622
  • Assets per unit = $1.943
  • Debt per unit = $1.116 (including current liabilities)
  • Gearing = 57.4%
Asian Pay Television Trust recently release an investor update presentation slides which prompt me to review my investments in APTT. Here are the statistics.

With 12.62% yield, this is probably the highest yieldings trust you can find in the market. It is at least three percentage points higher than the next highest which is Dasin Retail Trust. However, it comes with a price and risk. Its gearing is at 57.4% which is extremely high, although it is trading at 38% discount to NAV. It seems to be trading at a level which is similar to levels during a crisis, although they are not going through one.

In my opinion, the high yield comes with a high risk and their assets are not brick and mortar like REITs which means it is not as reliable as valuing properties. However, I will still be holding on to my 200,000 shares, enjoying the dividends even though it has fallen 8 cents since my last analysis.

2 comments:

  1. Have you looked at EC World REIT ? It yields 8.1%, and trades at 81% of NAV. And debt is low at only 28% of assets (composed of bank loans from DBS China in CNY, and Bank of China Singapore in SGD).

    Properties are in China, I know. But it already has 3 years of track record on the SGX, with a flawless records of great dividends, and a good level of transparency.

    So, I really don't think it's a scam, with fraudulent accounts and properties in ghost cities.

    Looks legit, and is therefore a great bargain at these levels.

    Or am I missing something ?

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  2. Their NAV is made up of intangibles.
    And by its nature, I do think the trust needs to renew and upgrade its infrastructure once in a while?
    And these upgrades are not deducted in the current DPU

    ReplyDelete