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 8, 2012

Analysis of Cambridge Industrial REIT

Current Price on 6th August 2012 = $0.595
  • Current Yield = 7.93%
  • Price-to-book Ratio = 0.946
  • Assets per unit = $0.977
  • Debt per unit = $0.360
  • Gearing = 36.8% 
  • Secured NAV = $0.155 (26%)
Cambridge Industrial Trust has reported its earnings earlier which has translated to 7.93% yield which is quite high in the market but below my current threshold level. Price-to-book ratio has also risen to a high of 0.946, which is very close to its NAV value of 61.2 cents. On paper, it is getting more and more unattractive.

Looking forward, there are some acquisition which have yet to contribute to its yield. I am predicting that it will move up to 8.20% in the coming quarter. What is more important is its sale of Lam Soon Building which will yield a cool $144 million in profit. It will propel its NAV to $0.738 and thus its price-to-book ratio will be 0.806. Moreover, SLA is compensating CIT at above valuation for one of its properties.

I am vested with 51,000 shares and will be participating in its DRP to increase my holdings. To me, it looks like compound interest account.

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