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.

Wednesday, August 22, 2012

Analysis of AIMSAMP Industrial REIT

Current Price on 17th August 2012 = $1.28
  • Current Yield = 7.81%  
  • Price-to-book Ratio = 0.901
  • Assets per unit = $2.353 
  • Debt per unit = $0.933
  • Gearing = 39.7%   
AIMSAMP Industrial Trust has issued a 5 year MTN of $100 million at an interest rate of 4.9%. Before the final announcement, the trading price of its units fell from $1.30 to $1.26 which is unusual.

I think the interest rate which they are paying is quite high which will erode the distribution that it is giving to us. Moreover, we are also not very sure why they need this $100 million. They might just want to test the market to see how much they can raise and what is the interest rates the market is hoping to get from them. And I don't see this as a great success (not really a failure as well).

We need more news and updates from AIMSAMP to see what they are going to do with this $100 million before we can do more analysis on this. With 25,503 shares (I have just subscribed to its DRP), I am still holding on to it, looking forward to its completion of its asset redevelopment plans at 20 Gul Way.

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