S-REIT Investment Blog: Analysis of CapitaCommercial Trust

Welcome

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, June 17, 2013

Analysis of CapitaCommercial Trust

Current Price on 14th Jun 2013 = $1.515

Current Yield = 5.17%
Price-to-book Ratio = 0.925
Assets per unit = $2.443
Debt per unit = $0.805 (including current liabilities)
Gearing = 33.0%
Secured NAV = $1.616 (106%)

It has been a while (more than a year) since I analyzed CCT. But since the price went down and risk went up, it is time to look at this again which I think is one of the safest investment we can find among the S-REITs.

Yield is very low at 5.17%, the lowest among the office REITs. But price-to-book ratio is at 0.925 which is average. But what is promising is its secured NAV which is at 106% of its trading price. This also means that in the worst case scenario aka debts are defaulted and properties are seized, there is still a value of $1.616. This is great!

This is just one of the considerations for me especially when security is concerned. There are other REITs which I am considering and will be writing in this blog soon on it. It does seem attractive because of the secured NAV.