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, December 15, 2011

Analysis of CapitaCommercial Trust (After Refinancing)

Current Price on 13th Dec 2011 = $1.045

  • Current Yield = 7.00%
  • Price-to-book Ratio = 0.670
  • Assets per unit = $2.189  
  • Debt per unit = $0.630
  • Gearing = 28.8% 
  • Secured NAV = $1.379
CCT has reported a good news which is the refinancing of its loans and discharging $700 million worth of property from being encumbered. This has raised its Secured NAV to $1.379 which is 30% above its current trading price.

With this development, CCT has moved ahead of K-REIT Asia in terms of their statistics especially secured NAV and has made it more attractive. While K-REIT is working on expansion, CCT works on consolidating their operations including keeping its gearing low and improving secured NAV.

I am thinking of switching my portfolio from K-REIT to CCT with this development although the cost incurred might not be attractive.

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