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, July 2, 2012

Analysis of K-REIT Asia (After acquisition)

Current Price on 2nd July 2012 = $1.065
  • Current Yield = 7.38%  
  • Price-to-book Ratio = 0.746
  • Assets per unit = $2.369
  • Debt per unit = $1.027 (including current liabilities)
  • Gearing = 43.4%
  • Secured NAV = $0.712 (66.82%)  
K-REIT Asia made a surprise acquisition to hold 99.9% of OFC which is yield accretive. (Assumption is an increase of about 0.22 cents which is reflected in the yield as above). Moreover, it has earlier converted its MBFC to a LLC which gives some cost savings. This should translate to a higher yield as well.

What is more significant to me is that they are able to issue units at $1.17 which is much higher than the trading price. It shows a lot of confidence in K-REIT Asia's management of properties under its charge and also the underlying properties.

I am vested with 16,000 shares and is holding onto it. However, it is unlikely that I will buy more units as its price is already quite high.

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