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, December 27, 2018

Analysis of Global Investment Trust

Current Price on 28th Dec 2018 = $0.106
  • Yield = 9.43%  
  • Price-to-book Ratio = 0.526
  • Assets per unit = $0.204
  • Debt per unit = $0.003 (including current liabilities)
  • Gearing = 1.3%
  • Secured NAV = $0.201 (189% of trading price)
It has been a while since I blogged so I am trying to do catch up now. Here is an analysis of Global Investment Trust, one of my key investments (about 600,000 shares)

Global Investment Limited is yielding 9.43% which is high despite them cutting dividend to one cent per year. This is probably due to the recent drop in price which makes it attractive. Moreover, its price-to-book ratio is 0.526 which is almost about half price compared to their NAV. They have no debts so their assets are fully secured.

I have been looking at trying to see why their price dropped. And it is probably due to their investments in China Domestic Bonds this year which the market view negatively. They are rated AAA by their domestic rating agencies which means it is highly unlikely that it will default. The problem is reputation which the market questioned.

I have about 600,000 shares in this, giving me a decent yield and with such statistics which we have not seen in the recent years, there is a chance that I sell some of my other holdings to buy into this.

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