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.

Friday, July 16, 2010

Statistics on Indiabulls Properties Investment Trust

Some data on Indiabulls (IPIT, $0.235)

  • Current Yield = No yield
  • Price-to-book Ratio = 0.449
  • Assets per unit = $0.672
  • Debt per unit = $0.149 (Interest Rate at 13%)
  • Gearing = 3%
  • Secured NAV = $0.672
Indiabulls was listed in times where there is a financial crisis. Moreover, they were too optimistic in their distribution guidance which resulted in loss of confidence.

At current price, it represents a significant discount to its NAV. Moreover, they have used proceeds from its rights issue to pay off most of its secured debts. Therefore, banks or finance companies are unable to seize any assets held by it. It givers a lot of guarantee to the investors. I am holding on to Indiabulls although it is a small portfolio, waiting for it to bloom.

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