S-REIT Investment Blog: Analysis of PerennialCRT

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.

Monday, June 13, 2011

Analysis of PerennialCRT

Based on price at $0.615

Current Yield = 6.07%
Price-to-book Ratio = 0.91
Assets per unit = $0.68
Debt per unit = $0.01
Gearing = 0%

PerennialCRT is listed on SGX with a IPO price at the bottom of their price range which is $0.70. Currently their price is stable at $0.615 which gives 6.07% yield. At current yield, it has not reached my target of 8% yet.

One good thing is that currently there is no debt. This gives them a lot of room to expand and improve its yield. Moreover, their prospectus has stated that they are going to grow and improve their NAV to $0.82 and beyond. I think this is good and makes it cheaper than it seems now.

However, I am more concerned about how much the yield is going to improve than its NAV. It seems more like a growth REIT rather than a dividend REIT. If one is going for growth, this might be a good choice. To me, I am more concerned on preservation of capital and high yield to supplement my income. At current statistics, I will wait until there are more details on its yield before I decide on whether to invest in it.