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, March 21, 2019

Analysis of Global Investment Limited

Current Price on 20th March 2019 = $0.128
  • Yield = 7.81%  
  • Price-to-book Ratio = 0.658
  • Assets per unit = $0.196
  • Debt per unit = $0.001 (including current liabilities and perp securities)
  • Gearing = 0.4%
  • Secured NAV = $0.196 (104% of trading price)
Global Investment Limited has been trading quite steadily at around $0.128. I am vested with over 500,000 shares so naturally I will watch it closely. Let's take a look at the statistics.

Yield is currently at 7.81% which is decent actually although there are REITs which gives higher yield. This is of course pales from the earlier days where it gives 11% yield. It's price-to-book ratio is 0.658 which means we are getting at 35% discount to its net asset value. Because it has no debt, all their assets are considered secured.

I have read public reports that says that China debts are defaulting by quite a lot so their exposure to China domestic debt is quite a concern even though it is rated at AAA. They have $55 million invested in it which is about 15% of their NAV. Therefore if it is wiped out, its NAV will reduce by 15% only.

They have also commence share buy back which shows that the management thinks that their shares are very much undervalued that buying back shares is considered a good investment. This is good for shareholders because our holdings will increase because the denominator aka total number of shares are decreasing.

Overall, I think it is quite stable and fairly valued. I will be just holding it to collect dividends which they would generate every half a year.

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