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, June 21, 2018

Analysis of Hutchison Port Holdings Trust

Price on 20th June 2018 = $0.39
  • Yield = 8.58%  
  • Price-to-book Ratio = 0.465
  • Assets per unit = $1.578
  • Debt per unit = $0.717 (including current liabilities and perpetual securities)
  • Gearing =  45.5%

Hutchison Port Holding Trust recently has a meltdown in their price which pushes up the yield and makes it more attractive for investment. Let's take a look at the statistics first.

With a yield of 8.58%, it is definitely attractive now considering that it is not easy to get such a yield in the REIT market. Moreover, it was trading at around 6% last year which means people are willing to pay for such a premium given a good market. Its price-to-book ratio is 0.465 which means we are buying at less than half the value. Gearing is at 45.5% which is quite high though.

It is a business trust focusing on port business so it is different from real estate which carries more value even when there is no income. However, HPH Trust holds one of the busiest port and probably important port to the Hong Kong economy as well. It is also operating ports in China. Thus, it is highly reliant to the Chinese economy.

With the high yield and low price-to-book ratio it is worth considering now to invest and I am looking very closely to it. Especially when I am also intending to sell one of my holdings.


  1. The distribution of HPH keep dropping and the profit still not turnaround even the global economic rebound. Do you have any concern on this factor?

    1. My take is that it is already very low. So it is priced-in.

  2. HPHT is not performing and the fundamentals are weak and the industry outlook is bleak. The same PPT package with some word changes is used for the quarterly results presentation. It is running out of ideas and the business is on a downhill path. Higher yield from lower share price is not the right approach to REIT investment.

  3. No point having high yield with price dropping.

  4. The trade war is likely to affect the port businesses around the world. May be wiser to leave it for the time being