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, February 4, 2013

Analysis of AIMSAMP REIT

Current Price on 1st Feb 2013 = $1.585

  • Current Yield = 6.54%  
  • Price-to-book Ratio = 1.06
  • Assets per unit = $2.374
  • Debt per unit = $0.879 (including current liabilities)
  • Gearing = 37.0%

AIMSAMP REIT has published its results which start to show the increment of its yield from its redevelopment. I think this is a positive sign and it will move towards my predicted 7.44% yield by the end of the year. 7.44% is my holding zone but I think with this investment climate, it is very difficult to get 8% (only Sabana REIT has that but it is trading at a premium as well)

A good news is that they have started to redevelop another property which will increase its NAV and yield as well. It is a much smaller one but nevertheless a good catalyst. They have a lot more properties which they can redevelop so I am expecting this to be a core strategy for the next few years ahead.

One drawback is that it is now trading at a premium which makes it unattractive. With this pricing, Sabana may be more attractive even if AIMSAMP completes its redevelopment plans. Still thinking.

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