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 16, 2010

Analysis on Ascott REIT

Price = $1.17

Yield = 6.58%
Price to book ratio = 0.831
Asset per unit = $2.582
Debt per unit = $1.172
Gearing = 45.5%

Following the acquistion, I have tried to update the details to see whether the situation has improved for Ascott REIT. What I felt is that the only positive news is the sale of Ascott Beijing which increases its NAV. The increase in yield is quite minimal compared to the size of the acquistion. They placed themselves into a situation which they call "6th largest" REIT.

I don't think it is a good news to enlarge itself because any other acquistion will be seen as minimal. However, they do have a few deals where they manage to sell their assets as a value higher than its valuation. Hope that this trend continues so that the value of the units can be enhanced.

I am not banking on appreciation of valuation as it is not my investment philosophy to rely on increase in valuation. Based on its 6.58% yield, I am giving it a miss until the price drops.

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