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.

Saturday, August 6, 2011

Analysis of AIMSAMP REIT

Current Price on 6th August 2011 = $0.215
  • Current Yield = 9.86%  
  • Price-to-book Ratio = 0.803
  • Assets per unit = $0.465  
  • Debt per unit = $0.191 (including current liabilities)
  • Gearing = 41.2%  
  • Credit Rating = Ba2

This week has been very interesting with the stock market crashing down by about 4%. REITs falls by 2.6% on average. AIMSAMP REIT has earlier reported its results with a redevelopment announcement. This is a good news because it increases DPU and NAV at the same time.

Current yield stays at 9.86% and its price-to-NAV ratio stands at 0.803 which fits all my criteria. However one thing which is bothering me is its credit rating. It is at Ba2 which is quite risky (that is why it is trading at such a yield and discount to NAV) Moreover, its gearing has increased to 41.2% which is quite high. With the current economic climate, their interest rates on loans should be quite high as well.

I have an investment of about $7000 on this REIT. I am looking at increasing it to above $10,000 which then I can consider it to be one of my anchor investments. (even though there is a risk.)

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