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, September 7, 2011

Analysis of K-REIT Asia

Current Price = $1.15
  • Current Yield = 6.71%
  • Price-to-book Ratio = 0.738
  • Assets per unit = $2.397
  • Debt per unit = $0.89 
  • Gearing = 37.1%
  • Secured NAV = $1.332
I have decided to look at K-REIT again because after looking through my portfolio, I realize that there might be better options out there. At the current price, the yield is 6.71% with a very low price-to-book ratio. Moreover, the secured NAV is $1.332 which is higher than current price.

Although its yield does not reach my target, I have deviated away slightly from my criteria by buying FCOT. If I were to decide again, I might have chosen K-REIT instead because it is less risky than FCOT. FCOT has a credit rating of Ba2 which is worse than K-REIT (Baa3). Moreover, it has secured NAV which FCOT does not have. All these would justify a lower yield (not too low actually compared to FCOT).

Although I have compared between K-REIT and FCOT, I am still sticking to FCOT. If I have additional funds (which I don't have right now), then I will consider K-REIT. 

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