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, October 23, 2012

Analysis of Sabana REIT

Current Price on 19th October 2012 = $1.14
  • Current Yield = 8.21%  
  • Price-to-book Ratio = 1.066
  • Assets per unit = $1.795
  • Debt per unit = $0.726 (including current liabilities)
  • Gearing = 40.4%
Sabana REIT has reported its results which is very strong. Its yield increases by 3% which is commendable. Currently, its yield is 8.21% and it is the only REIT which is still trading at above 8% (my first criteria). However, its price-to-book ratio is 1.066 which is above 1. This makes it a little bit tricky because it is a premium REIT rather than a discounted REIT which I favour.

I have a sensing that we should be looking at the yield more than the NAV because it actually shows that the manager is able to get more yield per value of property that they have. Having said that, it is better if both factors are considered.

I have only 1,000 shares but I won't be looking at increasing yet until I am convinced that yield should be the dominating factor compared to price-to-book ratio.

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