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, October 21, 2010

Analysis on Mapletree Industrial Trust

Analysis after IPO.
  • Price = $1.16
  • Yield = 6.43% 
  • Price to book ratio = 1.35 
  • Asset per unit = $1.479 
  • Debt per unit = $0.62 
  • Gearing = 41.9% (even though prospectus indicated 38.5%)
  • Secured NAV = $1.479
It is currently trading a price which its statistics is very close to A-REIT. I think this REIT will follow the footsteps of A-REIT in terms of valuation and yield because of the strong backing it has. I think the price is a bit too high for me, compressing the yield and trading at a high premium to its NAV. I still prefer smaller REITs which has higher yield. 

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