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, July 15, 2010

Statistics on Cambridge Industrial Trust

Some data on Cambridge Industrial Trust ($0.51 on 14th July 2010)
  • Current Yield = 9.71% 
  • Price-to-book Ratio = 0.86
  • Assets per unit = $1.05
  • Debt per unit = $0.451 (Interest Rate at 5.93%)
  • Gearing = 43.5%

Cambridge Industrial Trust is one of the REIT with the highest yield, and having its assets based entirely in Singapore. This gives a lot of security to the assets that Cambridge is holding. Moreover, it is trying to diverst its non-core assets, trying to reduce debt and therefore gearing. I see this as a very good move especially when the interest rate is actually quite high. However, I am still waiting for news about how they are going to reduce its debt with the money they have because their distribution is falling because of fewer assets generating income. Hope to hear more news from it. I have 20,000 shares already and should be enough for now.

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