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, December 23, 2013

Analysis of AIMSAMP Industrial Trust

Current Price on 17th Dec 2013 = $1.415
  • Current Yield = 7.77%  
  • Price-to-book Ratio = 0.931
  • Assets per unit = $2.512
  • Debt per unit = $0.992 (including current liabilities)
  • Gearing = 39.5%
  • Secured NAV = $0.632 (44.6%)

AIMSAMP REIT is one of my anchor investment (vested with about 34,000 shares). However, recently they have dropped by quite a lot due to the increased risk involving investing in industrial REITs. Here we take a look at the data.


With a yield of 7.77%, I would say that it is quite reasonable although we have Sabana REIT which is yielding at 9.1%. Considering that they have growth potential through AEIs while Sabana REIT does not really have (at least we do not really know). However, if we include the recent acquisition, the yield will be about 8.4% which is high enough.

Price-to-book ratio seems good at 0.931 which means we are buying at 6% discount. This will change if interest rates in US rises. Have to be very careful for this.

I am not switching to other REITs because of the transaction costs involved. The yield is not too low as well. I think I will ride through this difficult period especially 2014 with them unless there are glaring issues involved.

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