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.

Thursday, September 2, 2010

New Purchase on AIMSAMP REIT

New Data since announcement of rights issue and purchase of property.
  • Price = $0.205 (TERP based on $0.22) 
  • Yield = 10.15% 
  • Price to book ratio = 0.789 
  • Asset per unit = $0.401 
  • Debt per unit = $0.141 
  • Gearing = 35.2%

This is a yield-accretive acquisition which increases the yield to 10.15% according to current price of $0.22. The only drawback is that there is no more secured NAV as it is used as a collateral to a $280M loan.

According to my criteria, AIMSAMP Capital REIT still fits nicely with low gearing, high yield, discounted price-to-book ratio. I felt that it is time to invest in AIMSAMP Capital REIT so I have made an investment of 25,000 shares today. Moreover, I will subscribe to its rights issue and hopefully be able to subscribe to some excess units.

Looking at my current portfolio, I might have over-diversified. Therefore, I am looking at consolidating my portfolio within the next 6 months. Of course, if you have some advice, please do let me know and we can discuss about it. Many thanks in advance.

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6 comments:

  1. UnknownSeptember 9, 2010 at 9:44 AM

    hi,

    can you advise on how to apply for the rights?
    is it a good price?

    ReplyDelete
  2. GaudenteSeptember 9, 2010 at 7:05 PM

    my advice is to stay away from this counter.
    Whenever there's a rights issue, the price is put under pressure by arbitrages between the shares and the rights.
    Buy the rights on their last trading day, if they quote with a substantial discount.

    ReplyDelete
  3. jc.education.sgSeptember 10, 2010 at 12:57 PM

    Hi James,

    Further details will be released at a later date by AIMS AMP. Just prepare your money in a bank account because we are able to subscribe into rights issue thru ATM. The price is good enough considering the recent rise in Cambridge makes AIMS AMP Capital relatively more attractive. However, you got to calculate your own TERP to determine the average price that you have purchased.

    ReplyDelete
  4. jc.education.sgSeptember 10, 2010 at 1:00 PM

    Dear Gaudente,

    It depends on situations. Notice my analysis is based on TERP price. Moreover, it has risen by 5%.

    Take it as an opportunity to invest at a discount, so that you are able to earn more dividends (which are recurring income)...

    ReplyDelete
  5. UnknownSeptember 14, 2010 at 9:12 PM

    hi,

    May I know how you calculate the TERP?
    Also, how to apply for the rights and is it the price is not fixed?

    ReplyDelete
  6. jc.education.sgSeptember 17, 2010 at 7:59 PM

    You may refer to more details from the SGX website...

    ReplyDelete

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