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, July 29, 2013

Analysis of AIMSAMP REIT

Current Price on 26th Jul 2013 = $1.62
  • Current Yield = 6.10%  
  • Price-to-book Ratio = 1.051
  • Assets per unit = $2.17
  • Debt per unit = $0.61 (including current liabilities)
  • Gearing = 28.1%
  • Secured NAV = $0.659 (40.2%)
AIMSAMP REIT has delivered a set of results which I thought was quite puzzling. The yield dropped to only 6.10% which is very low, way below my target. NAV has increased by 2.5 cents which is good as it shows that it is creating NAV value which lowers its price-to-book ratio.

I suspect that the revenue on 20 Gul Way has not been realized yet, probably due to the contract (if I am not wrong, first two months is rent-free.) Thus, we are not really seeing the full picture of the yield so I am expecting the yield to increase later. Nevertheless, I need to observe this closely as I am banking on it to deliver about 25% of my annual returns.

AIMSAMP Industrial is what I call an organic growth REIT. There is a lot of redevelopment potential which is yield-accretive and NAV value-accretive. They are more stable and visible compared to acquisitions. Although it does not fulfil my target of 8% yield and Price-to-book ratio of below one, I will still hold on to this REIT for its growth prospect. 

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