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, January 9, 2012

Analysis of Mapletree Logistics Trust

Price on 28th Dec 2011 = $0.865
  • Current Yield = 7.82%
  • Price-to-book Ratio = 1.012
  • Assets per unit = $1.604 
  • Debt per unit = $0.75
  • Gearing = 46.8%
  • Interest Cover Ratio = 6.3 times
  • Secured NAV = $0.854
Mapletree Logistics Trust has been around for quite a long time but this is the first time I am covering this REIT. Looking at the statistics, its yield is 7.82% which is below my threshold of 8%. Its price-to-book ratio is 1.012 which is above 1. Its gearing is 46.8% which is very high and therefore bears quite a bit of risk.

However, their secured NAV is $0.854 which is very close to their trading price. Moreover, their debts are all unsecured. Because of their secured NAV, it caught my attention. I think there are REITs with better ratios and higher secured NAV so I am not investing in this REIT.

One new factor which I will take into consideration is the Interest Cover Ratio which I felt was important. It is the EBITA over interest expenses. It illustrates how much money are used to pay debt interest. The higher the ratio, the better it is.

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