S-REIT Investment Blog: Analysis of AIMSAMP Industrial REIT

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, May 19, 2014

Analysis of AIMSAMP Industrial REIT

Current Price on 12th May 2014 = $1.415

Current Yield = 7.10%
Price-to-book Ratio = 0.973
Assets per unit = $2.298
Debt per unit = $0.844 (including current liabilities)
Gearing = 36.7%
Secured NAV = $0.537 (38%)

There is a lot of news about AIMSAMP I Trust since I have last posted. Firstly, they have successfully raised cash through rights which I have subscribed. I supported this round of rights issue simply because they are raising cash for Asset Enhancement which will raise the value of our assets. It also brings down the cost price of my purchases.

Secondly, its results shows a better-than expected yield of 7.10%. I have expected a 20% decrease in its yield but it turn out to be only 10%. Thus, I am going to receive about $1000 worth of dividends as supplementary income for me.

Statistics has shown that the yield is Ok at 7.10% while its price-to-book ratio is about 0.973 which is very close to a One. Doesn't look attractive anymore but its growth plan is visible so I still think it is good.

Currently, I have 40,000 shares worth about $56,000. I won't increase my holdings but I also won't sell it at this point either.