S-REIT Investment Blog: Analysis of Cache Logistics Trust

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.

Saturday, January 29, 2011

Analysis of Cache Logistics Trust

Current Price on 28th Jan 2011 = $0.995

Current Yield = 7.79%
Price-to-book Ratio = 1.146
Assets per unit = $1.168
Debt per unit = $0.300
Gearing = 25.7%

Cache Logistics Trust is one of the smaller industrial REIT in Singapore. Smaller REITs in Singapore generally command higher yield and lower price-to-book ratio. Cache has an advantage over the rest which is its low gearing. This gives them opportunities to explore and build their portfolio using debt only. This is positive.

There is a potential to grow and I believe it has been priced in. Moreover, its price-to-book ratio is quite higher. (You will be buying the properties at a 14% premium which I am not in favour). I will wait for news to come, the price to drop to at least NAV level before I think about investing in this REIT.