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.

Friday, October 22, 2010

Analysis on Cambridge Industrial Trust

Current Price on 21st Oct 2010 = $0.565
  • Current Yield = 8.40%  
  • Price-to-book Ratio = 0.975
  • Assets per unit = $0.968  
  • Debt per unit = $0.389
  • Gearing = 40.2%  
Cambridge announce its results and new acquistion and also new preferential offering. From my perspective, they disappoint in terms of their yield because it decreases which I think is due to sale of properties. But I do see that they are trying to recycle the money and put it into new properties investment which is a good sign. They are also trying to pare down the debt to reduce risk which is another good move.

Yield is still ok to me according to my criteria but its price-to-book ratio is quite close to 1.00 which is my threshold. I will look at this closely to see whether it is time to offload them. (Since I have a formula, I will try to look at it objectively and follow it)

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