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.

Tuesday, February 7, 2012

Analysis of Cambridge Industrial Trust

Price on 7th Feb 2012 = $0.50
  • Current Yield = 9.03%
  • Price-to-book Ratio = 0.798
  • Assets per unit = $0.931
  • Debt per unit = $0.31
  • Gearing = 33.3%
  • Interest Cover Ratio = 5.0 times
Cambridge Industrial Trust published their report last month which translate to the above statistics. According to my criteria, it fits all of them i.e. more than 8% yield, discounted price compared to NAV, comfortable gearing and its interest cover ratio is also healthy at 5.0 times.

However, a point to note is that there are industrial REITs which offers better yield i.e. AIMSAMP Industrial REIT and Sabana REIT which are at 10.45% and 9.98% respectively. Moreover, AIMSAMP's price-to-book ratio are also better than Cambridge. For Sabana, it is comparable. In short, there are better ones out there compared to Cambridge.

Currently I am holding on 50,000 shares of Cambridge Industrial Trust, making it my second largest holding in terms of value. I am looking at a price target of $0.56 (8% Yield threshold) to sell it off. Moreover, if I have cash, I will prefer to increase my holdings in AIMSAMP Industrial Trust rather than Cambridge.


  1. Cambridge is great if you're chasing yields. But for some reason its a dog if you're looking at price growth. If I'm not mistaken its issue price was 0.70. Except for a brief spell in 2007, price was mostly below that and till now has never recovered to the same level even during the boom years of 2010 and 2011. I'm not sure if I would be jumping for joy even if you said in your post that it was trading at a discount to NAV. Just my two cents ...

  2. If you have invested at issue price, you would have gone through some rights issue where you can subscribe shares at a lower price. It helps to bring the overall cost down. Moreover, the amount of dividends that one has collected since 2007 would have been quite a lot as well.

    However to me, issue price is no longer important. We try to look at the current statistics and pricing to decide whether it is worth investing.