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, August 2, 2013

Analysis of Suntec REIT

Current Price on 26th Jul 2013 = $1.61
  • Current Yield = 5.57%  
  • Price-to-book Ratio = 0.76
  • Assets per unit = $3.48
  • Debt per unit = $1.355 (including current liabilities)
  • Gearing = 38.9%
  • Secured NAV = $1.239 (76%)
Suntec REIT has published their results which register a drop in their DPU. Thus, their yield is at only a 5.57% which is quite low. Their AEI has not been completed yet and has not deliver their returns so we got to be patient to see what is the final outcome to its yield.

One good thing to note is that its price-to-book ratio is very low at 0.76. This is in fact the best ratio that I can see in the S-REIT market. Moreover, all their assets are in Singapore which I thought was favourable (compared to those who have overseas properties)

One more thing to note is that they have secured a $500 million unsecured loan to refinance their loans. I notice that the loans that they are going to pay off are secured loans. I wonder whether if that means that their secured NAV will go up. I am expecting it to go up to $1.46 which is 90% of its trading price.

I have been watching this for a long time but was never impressed by its yield. And I am always attracted by its price-to-book ratio so there is always a dilemma here. If I need to go for security and stability, I will consider this REIT.

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