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.

Monday, May 16, 2011

Analysis of Sabana REIT

Based on price at $0.91
  • Current Yield = 9.68%
  • Price-to-book Ratio = 0.898
  • Assets per unit = $1.41  
  • Debt per unit = $0.396
  • Gearing = 28.1%
Sabana REIT reported their first quarter results which is impressive especially after XD where its price dropped by 3 cents. It has a yield of 9.68% which is very high. Moreover, it is trading at 10% discount to NAV which is again attractive. Finally, it has low gearing which makes it stable. Overall, it fits all my criteria.

As posted earlier, I will offload First REIT when it reaches the NAV price. This would be one which I will consider seriously to invest should I need another anchor investments. Just take note that I will need to compare this with AIMSAMP and Cambridge which offers higher yield and larger discount. They are more attractive, but I wonder if my investments is too focused on these two REITs.

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