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, December 31, 2011

Analysis of Cache Logistics Trust

Current Price on 28th Dec 2011 = $0.955
  • Current Yield = 8.77%
  • Price-to-book Ratio = 1.067
  • Assets per unit = $1.303 
  • Debt per unit = $0.408
  • Gearing = 31.3%
I have been reading research reports and Cache has been well-recommended. Therefore I have decided to relook into this REIT again and here are the statistics.

Their strong point is their DPU growth (rather than just DPU) which shows their strength in improving yield at a fast pace. Thus, their trading price has always been higher than its NAV (which, in my opinion, I am not favourable). Their gearing is still comfortable i.e. there is still room for growth.

Their yield is high enough now (above 8% threshold) thus I will be looking closely. But its price-to-book ratio is still above 1 (a premium REIT). There are other REITs which are trading at a cheaper price and higher yield. Unless I am going for growth (than just dividends), this REIT will remain in my radar and not in my portfolio.

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