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.

Saturday, August 14, 2010

New Transaction from Cambridge

New transaction and its impact on the data...

Current Yield = 9.3%
Price-to-book Ratio = 0.853
Assets per unit = $1.002
Debt per unit = $0.41
Gearing = 40.4%

This is an interesting transaction because it actually decrease the net yield for unitholders. I am not very sure why they want to do this but I have a feeling that they are trying to negotiate their existing loan which is achieved at a very high interest (compared to current market).

Therefore, if they are able to reduce the interest rate of their existing loan, it will increase its yield and make it more attractive for us. I am also hoping that they will choose to use only some of the properties for collateral to create what I call Secured NAV. This will somehow guarantee some value of its units and make it more defensive...

Not very sure if Cambridge is reading my post... Just my two cents worth...

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