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.

Tuesday, October 5, 2010

Analysis of Suntec REIT

Current Price on 5th Oct 2010 = $1.52
  • Current Yield = 6.61%  
  • Price-to-book Ratio = 0.905 
  • Assets per unit = $2.556  
  • Debt per unit = $0.865
  • Gearing = 33.8%  
  • Secured Asset per unit = $1.815 (Estimated)
Suntec REIT has announced a new term loan which is secured only through Suntec City Mall... This means that the Office Towers are now unencumbered... It is quite difficult to check the exact valuation so I made an estimate on the Secured Asset. Currently it looks very attractive in terms of secured assets because it is higher than current trading price. I will consider investing in this REIT although its yield has not reached my criteria.

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