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.

Tuesday, December 14, 2010

Analysis of Sabana REIT

Based on price at $0.93
  • Current Yield = 9.28%
  • Price-to-book Ratio = 0.936
  • Assets per unit = $1.399  
  • Debt per unit = $0.405
  • Gearing = 29.8%
Sabana REIT has been listed for quite a while already with its price hovering at $0.93 - $0.94. Therefore, it is time to do some analysis. Based on current price, I find Sabana REIT quite favourable. With its yield at 9.28%, it is one of the REIT with yield above 9% (other being AIMSAMP, Cambridge, and First REIT). Moreover, it is trading at a discount to its NAV which is also attractive.

I see this REIT as similar to AIMSAMP and Cambridge which does not have a strong sponsor and therefore is trading at a low price. However, I would prefer such REITs as it offers higher yield. My main purpose is to collect dividends which hopefully is substantial enough to cover my expenses.

I will continue to look at this closely to see if there is an opportunity to invest at a lower price. I don't have much cash at the moment to think about new investments so have to wait.

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