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.

Friday, May 10, 2013

Analysis of Asian Pay Television Trust

Proposed Maximum price = $1
  • Current Yield = 7.26%  
  • Price-to-book Ratio = 1.097
  • Assets per unit = $1.685
  • Debt per unit = $0.773 (including current liabilities)
  • Gearing = 45.9%
There is going to be a new listing of an infrastructure assets in the name of Asian Pay Television Trust which is a hive-off from MIIF. The yield is at an attractive rate of 7.26% which is quite high if you are comparing with REITs. However, its price-to-book ratio is at 1.097 which means we are paying about 10% more for this asset.

I believe that Infrastructure Assets have a faster depreciation than REITs since there is wear and tear plus advancement of technology. Thus, I am not too sure whether it can sustain the assets per unit of $1.685. Its gearing is also quite high at 45.9% which is quite dangerous.

I think I will need more information and knowledge on this kind of investments before I decide. Nevertheless, 7.26% yield to me is not good enough considering that there are REITs with similar yield.

No comments:

Post a Comment