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 24, 2013

Selling off Saizen REIT

Current Price on 18th Jun 2013 = $0.182
  • Current Yield = 6.16%  
  • Price-to-book Ratio = 0.759
  • Assets per unit = $0.374
  • Debt per unit = $0.134 (including current liabilities)
  • Gearing = 35.8%
The recent sell-off made me rethink of my portfolio so this is the second trade that I have made this month to optimize my portfolio.

I bought Saizen REIT because of its high secured NAV which is security to conservative investors like myself. Its yield is also quite high then. Since they got themselves out of trouble (they defaulted one of their loans), Saizen REIT has embarked on a re-leveraging efforts to grow its business but I think they are taking a lot more risk as well which I am not comfortable with. Although its price-to-book ratio is at 0.759 which is one of the best, its yield is no longer high. With the depreciating yen, there is some impact on Saizen REIT.

I sold off 70,000 shares of Saizen REIT at $0.181 and locked in a profit of $950 excluding dividends. Although it has one of the best price-to-book ratio, there are others which are close rivals to Saizen REIT and they are safer. I have decided to go for these REITs instead.

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