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, July 30, 2014

Analysis of Suntec REIT

Current Price on 24th July 2014 = $1.84
  • Yield = 4.93%  
  • Price-to-book Ratio = 0.869
  • Assets per unit = $3.334
  • Debt per unit = $1.216 (including current liabilities)
  • Gearing = 36.5%
  • Secured NAV = $1.517 (82%)

Suntec REIT has reported its results which has not really show the increase in DPU due to its major AEI. Yield is at a low of 4.93% but its price-to-book ratio is at an attractive rate of 0.869. Moreover, its secured NAV is about 82% of its trading price.

When its price is at $1.50, I have considered buying. The only hindrance is its yield. It has risen by 20% already which shows that many investors are looking at its forward yield instead of current yield (which I am not very sure)

I prefer to have it visible and stick to my investment portfolio so I will still give it a miss.

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