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, April 22, 2013

Analysis of Cambridge Industrial REIT

Current Price on 19th Apr 2013 = $0.85
  • Current Yield = 5.81%  
  • Price-to-book Ratio = 1.287
  • Assets per unit = $1.047
  • Debt per unit = $0.386 (including current liabilities)
  • Gearing = 36.9%
  • Secured NAV = $0.16 (18%)
Cambridge Industrial Trust has reported its results which is again an improvement from the previous results. It has pushed the price up to a high of $0.85. At this price, the current yield is 5.81% which is quite low. Its price-to-book ratio is 1.287 which is high. In all indicators, it has lost its attractiveness. Sabana REIT has better indicators i.e. higher yield and lower price-to-book ratio.

Nevertheless, I suspect that the price-to-book ratio can be better. There is an incident whereby CIT tried to sell one of their assets at 3 times their book value (which did not work out). I kept the analysis in my excel sheet and continued to track the data assuming that it has happened. The indicators seems better with price-to-book ratio dropping to near 1.0 level and Secured NAV at about 80%. These are some forward-looking scenarios which I don't normally rely on.

Well, if I continue to stick on to my investment philosophy, there is really nothing I can buy and I am still trying to tweak my thinking and analysis. But a lot of opportunities has passed by which I regretted. Need to learn to look forward.

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