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, February 3, 2014

Analysis of Mapletree Greater China Commercial Trust

Current Price on 24th January = $0.81
  • Current Yield = 7.50%  
  • Price-to-book Ratio = 0.854
  • Assets per unit = $1.704
  • Debt per unit = $0.754 (including current liabilities)
  • Gearing = 44%
  • Secured NAV = $0.949 (117%)

MGCCT has reported its results which to me is good. Yield is at a high of 7.50% which is one of the highest among the Office REITs and Retail REITs. 7.50% is also my "yellow" threshold which I will consider seriously if other factors are strong.

 Price-to-Book ratio is also at 0.854. This means that if I buy at current price, I will be getting it at a 15% discount. As it uses unsecured loans, its secured NAV is 117% which is one of the highest in SREIT as well.

 One worrying point is its gearing which is high at 44%. Considering that it has a debt rating and it is investment grade, I don't think we should be too worried about it.

 I am vested with 6,000 shares which I got during its IPO. Still enjoying its dividend although I have lost in capital depreciation. I am still looking around shopping for REITs.
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2 comments:

  1. Justin LimFebruary 13, 2014 at 5:09 AM

    Thank you for your write ups in the reits. I am a greenhorn to investing, where or how do you source for the Book Value of these reits so as to determine the PB ratio?

    ReplyDelete
  2. jc.education.sgMay 13, 2014 at 9:12 PM

    Hi Justin,

    Book Value is published in their report. Thus, the ratio is the market price divided by the NAV.

    Hope it helps.

    ReplyDelete

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