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.

Monday, December 19, 2011

A Closer Look at Saizen REIT

I went to take a closer look at Saizen REIT's portfolio following a number of announcements since their last report. Here are the findings which I thought was significant.

Based on price at $0.140
  • Current Yield = 7.19%
  • Price-to-book Ratio = 0.524
  • Assets per unit = $0.447  
  • Debt per unit = $0.182
  • Gearing = 40.7%
  • Secured NAV = reduced to nil
Their announcements include securing new loans which wiped out all of their secured NAV. Therefore, they now have lots of cash and debt at the same time. If they do not have plans to use their available cash, I don't view this as a good point. To be fair to them, they did make an acquisition on 15th Dec which is yield accretive.

Saizen REIT is getting less attractive as there are better REITs which have similar statistics + higher yield. Looking at my small portfolio with them, I think I will stick with them for a while until I have other plans.

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