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, July 16, 2011

Analysis of CapitaCommercial Trust

Current Price at $1.45 
  • Current Yield = 5.30%
  • Price-to-book Ratio = 0.930
  • Assets per unit = $2.189
  • Debt per unit = $0.63 
  • Gearing = 28.8%
  • Secured NAV = $1.144
CapitaCommercial Trust has delivered an interesting presentation on their portfolio. According to their slides, the rents have bottomed out and is slowly increasing again. This would mean that their yield should be able to increase. If it ever reaches its peak again, the rents would be doubled.

If we look at a potential increment of rents by 50% over the next one to two years, we are looking at the yield improving to about 8% which actually is my yield target. With its current trading price below NAV + it has high secured NAV i.e. 80% of my investment would be secured because it is not mortgaged. We have a potential gem in the market.

I am looking at how I am going to re-position my portfolio and this is one which is under my consideration. 

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