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.

Thursday, October 20, 2011

Analysis of Cambridge Industrial Trust

Current Price on 18th October 2011 = $0.445
  • Current Yield = 9.73%  
  • Price-to-book Ratio = 0.716
  • 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 contribute to this quarter. In their rights document, I am expecting 1.25 cents per quarter which I have actually used it for my analysis. I should be more conservative.

At current valuation, it is still great to buy but there are better investments which offer higher yield and lower price-to-book ratio. AIMSAMP REIT offers that. There are also other REITs like K-REIT Asia, Suntec REIT, Lippo Malls which offers 9% yield and lower price-to-book ratio. I felt that it is time to consider the quality of assets under management since the statistics are now quite similar.

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. No point incurring trading expenses unless there is a real good deal coming up.

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