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 11, 2014

IPO Analysis of IREIT Global

IPO Price = $0.88
  • Yield = 7.60%  (2014) 8.00% (2015)
  • Price-to-book Ratio = 1.142
  • Assets per unit = $1.159
  • Debt per unit = $0.388 (including current liabilities)
  • Gearing = 33.5%

This is long overdue. I hope that I am not too late. One more REIT on IPO and this time round, it is on German properties. I think this is very interesting because it would be the first pure Europe REIT. Let's look at the statistics

Yield is at a strong 7.60% in 2014 and 8.00% in 2015 which is quite high, second only to Viva Industrial Trust. However, its price-to-book ratio is also at the high of 1.142 which means we are paying almost 15% premium for the property. I wonder how the valuation is done and if it is valued so lowly, what does it show on the economy in Germany.

We will take the statistics at face value and analyze. Same to Viva Industrial Trust, high yield and high price-to-book ratio. I will choose Viva Industrial Trust over IREIT Global for higher yield and lower price-to-book ratio, especially when it has recently XD-ed and price has dropped to an acceptable level.

Statistics-wise, it is not favourable but I am applying for 4 lots to gain exposure and experience on European REITs.

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