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.

Tuesday, July 13, 2010

First REIT's Statistics

First REIT ($0.88 on 14th July 2010)
  • Current Yield = 8.64%
  • Price-to-book Ratio = 0.833
  • Assets per unit = $1.242
  • Debt per unit = $0.185 (Interest Rate at 6%) 
  • Gearing = 14.9%
According to my criteria, First REIT will fit in perfectly. The only concern is that most of its assets are based in Indonesia. Although the economy of Indonesia has been improving in the recent years, it is still not as safe as REITs with Singapore assets. But First REIT (along with LMIR) has kept its debt level to below 15% to boast investors' confidence.

I am attracted by the high yield, low debt level, and the fact that it is trading below NAV. I am looking at a good entry level to increase my holdings in First REIT.
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