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.

Saturday, January 29, 2011

Analysis of Ascendas REIT

Current Price on 18th Jan 2011 = $2.15
  • Current Yield = 6.45%
  • Price-to-book Ratio = 1.275
  • Assets per unit = $2.631  
  • Debt per unit = $1.041
  • Gearing = 39.6%
Ascendas REIT is the major industrial REIT which sets the pace and standards for all other industrial REITs. It is so big that other industrial REITs are no where near its size. The yield is also quite good at 6.45% although it is quite expensive at price-to-book ratio of 1.275.

I felt that its size has hindered them from growing substantially. It seems so developed that it will just grow steadily at a pace which it is comfortable. However, its growth is too slow at less than 1% which is not favourable.

I prefer smaller REITs although they are more financially vulnerable. Only when I start to get older, and I need security more than growth then I will consider A-REIT.

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