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, June 21, 2013

Selling off Keppel REIT

Current Price on 18th Jun 2013 = $1.515
  • Current Yield = 5.63%  
  • Price-to-book Ratio = 1.119
  • Assets per unit = $2.27
  • Debt per unit = $1.019 (including current liabilities)
  • Gearing = 44.9%
  • Secured NAV = $0.628 (44%)
I have decided to review this REIT because I have 16,000 shares interest in it. Looking at its current yield at 5.63%, it is quite comparable to its peers like CapitaCommercial Trust and FCOT. Its price-to-book ratio at 1.119 which is very high compared to CCT which is at 0.925 and FCOT at 0.937. In fact, it is the only premium REIT in the office REIT sector. Its gearing is also high at 44.9% with a secured NAV of 44%. 44% is actually not bad but if you compare it with CapitaCommercial Trust at 106% and FCOT at 68%, it is actually not high.

I sold off 16,000 shares of Keppel REIT at $1.385. Compared to my purchase price of average $0.889 in Dec 2011, I have locked in a profit of $7,800 excluding dividends. I thank Keppel REIT for their excellent management which helps to push up the trading price. However, its price has reached a point which I think is fairly valued already. With its price-to-book ratio at about 1.1, I think there are better REITs out there which offers better value and dividend yield.

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