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.

Wednesday, July 20, 2011

Analysis of Cambridge Industrial Trust

Current Price on 20th July 2011 = $0.51
  • Current Yield = 8.13%  
  • Price-to-book Ratio = 0.821
  • Assets per unit = $0.922  
  • Debt per unit = $0.301 (including current liabilities)
  • Gearing = 32.6%  
Cambridge Industrial Trust deliver another set of results which I felt was a bit disappointing because I have expected the acquisitions announced recently to be concluded earlier than expected. Now the increase in DPU is more gradual. I have chosen to use their current dividend to calculate the yield. 

Their yield has definitely dropped to a low of 8.13% from a high of 10%. I am expecting it to move back to 10% but I think it will take a while longer than usual. It still fits  my criteria although it is not as attractive now. Price-to-book ratio is still at 0.821 which is cheaper than its NAV. Sad to say, there is no word on Dividend Reinvestment Plan which I am in favour.

It is still one of my anchor investments (S-REIT counters which I have at least $10,000 investment) which I will continue to hold on for as long as it maintains its current performance.

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