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, December 17, 2012

Purchase of Global Investment Limited (Non-REIT)

I have purchased 70,000 shares of Global Investment Limited at an average price of $0.149 (which is actually quite high) in my first foray into Non-REIT counter. Here are the statistics.

  • Current Yield = 10.07%  
  • Price-to-book Ratio = 0.662
  • Assets per unit = $0.245
  • Debt per unit = $0.02 (including current liabilities)
  • Gearing = 6.67%

I did some calculations on the portfolio which they have and here are some of the highlights.
  • It has cash of $51 million which translate to $0.0629 per share.
  • It has listed equity of $24 million which translate to $0.0296 per share.
  • They are going to monetize their Aircraft investment which is $44 million and that translate to $0.0543
This has already translated to a secured NAV of $0.147 which is almost their trading price. This would also mean that you are buying the other assets worth $0.078 at only $0.002 per share. This to me is favourable and is better than the REITs currently. However, just a note that the assets are risky with credit rating below investment grade for most of them and some of them are already in default. However, I have figured out that I am risking only a little for these assets so it is worth a try.

The investment is about $10500 which brings me about $1,050 per year. Quite good. I wonder whether I should sell some of my holdings to buy this again. (In my portfolio, there are REITs which have risen so much that it is no longer attractive.)

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