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, August 4, 2014

Analysis of Mapletree Greater China Commercial Trust

Current Price on 31st July 2014 = $0.92
  • Yield = 6.78%  
  • Price-to-book Ratio = 0.907
  • Assets per unit = $1.759
  • Debt per unit = $0.744 (including current liabilities)
  • Gearing = 42.3%
  • Secured NAV = $1.015 (110%)

MGCCT has reported their results last week which showed favourable results. Yield is at a high of 6.78% which is commendable considering that it is a retail REIT. Price-to-book ratio is also at 0.902 which means that we are purchasing at 10% discount which is favourable as well. Its secured NAV is at 110% which means that this REIT is not going to fall anytime soon plus you can get a guaranteed $1.015 if it choose to dissolve.

REITs with high yield and trading at a discount are hard to come by these days. I believe that those which are still trading at a discount to NAV will eventually move up. With my current plans to liquidate my investment in AIMS AMP, MGCCT will be one of the strong contenders to take over, competing with OUE Hospitality Trust, Sabana REIT and Viva Industrial Trust. Far East Hospitality Trust is also being considered for its high Secured NAV.

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