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.

Sunday, March 6, 2011

Analysis of Cambridge Industrial Trust

Current Price on 5th March 2011 = $0.51
  • Current Yield = 9.36%  
  • Price-to-book Ratio = 0.84
  • Assets per unit = $0.946  
  • Debt per unit = $0.339
  • Gearing = 35.8%  
The price of Cambridge has dropped since the crisis in Libya. Someone has told me before that the price to enter is at $0.50 which I agree. With a yield of 9.36% at current price and a discount to NAV, I think we have a good buy here.

I think the price will hover between $0.50 - $0.60. The reason is that $0.50 is a tested support price level so if I can try to enter at this price, I am confident that it will not drop further. However, I think it will not move beyond NAV price. According to my strategy, anything beyond NAV price is a premium REIT which is not favourable. Unless there is substantial evidence that the valuation will move further up, I think I will look for other opportunities.

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