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.

Thursday, January 23, 2014

Analysis of First REIT

Current Price on 17th January = $1.045
  • Current Yield = 7.54%  
  • Price-to-book Ratio = 1.083
  • Assets per unit = $1.565
  • Debt per unit = $0.600 (including current liabilities)
  • Gearing = 38.4%

For a long time I have not checked on First REIT so with some exciting news, I have spent sometime looking at it. 

First REIT has reported a strong results with yield climbing back to 7.54%. It is so much better compared to earlier when its yield is hovering between 6 - 7%. Its price-to-book ratio, however, is still at a unattractive rate of 1.083. Considering that they were a discounted REIT and now there is a high level of confidence, they have done well. They do have some unencumbered properties but I have not spent time calculating it.

Looking at the pricing now, I don't think I will invest in this REIT because there are other REITs like OUE Hospitality Trust, SoilBuild Trust, AIMSAMP REIT which are offering the same yield. They may have their different risk profile but I think level of risk is about the same. I will be looking at the other results first.

1 comment:

  1. Starting new Investor friendly series of REITs mutual Fund http://www.realestatecritics.com/2014/03/vanguard-reit-index-fund-vgsix-one-of.html