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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.

Wednesday, December 18, 2013

Analysis of Ascott Residence Trust

Current Price on 15th December 2013 = $0.29
  • Current Yield =  7.18% (Estimated)  
  • Price-to-book Ratio = 0.865
  • Assets per unit = $2.234
  • Debt per unit = $0.881 (including current liabilities)
  • Gearing = 39.4%

Ascott Residence Trust recently have gone through a rights issue to pare down their debt which I thought was favourable considering that they are overly-extending themselves. Yield will drop from the rights issue so this is an estimate.

 With the current yield at 7.18%, I would say that it is not too bad although I would wish for it to be higher i.e. 8% or higher. However, its price-to-book ratio is great at 0.865. Gearing is at 39.4% which I thought was ok as well.

 There are major movements in my investments holdings so I am looking at this more closely only.
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