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 25, 2014

Updates on Current Holdings

In the month of August, I have made some trades which I thought was right to rebalance my portfolio. Here are the details.

I have sold my holdings on Croesus Retail Trust, yielding a capital return of about $2,000. One of the reasons why I sell it is because of its premium Price-to-book ratio. Also the yield is about 7%. Of course, later then I realize that I made a mistake in my calculations and the yield is actually 7.41%. Nevertheless, selling 19,000 shares at $1 is quite a good deal already although it continues to go up and there is a chance of revaluation.

I got a lot of IPO on IREIT Global at $0.88. And I am glad that it is holding up. Haven't done my analysis after IPO yet but seems only ok at this point.

I am looking at entering either Viva Industrial Trust which gives me a yield of 8.5% or OUE Commercial Trust which is trading at about 20 - 25% discount to NAV. Viva Industrial Trust can give its high yield is because of income support which will expire. However, if they are able to fill up their vacant spaces, their yield will hold up. OUE Commercial Trust can only rely on its revisions on their existing rents and may need to acquire to grow. This is on top of their income support which they currently have. The good news is that they are stable with strong sponsor.

Another candidate is Accordia Golf Trust which has fallen to a pretty low level. Quite difficult to decide from either of the three. I am trying out with Viva Industrial Trust first.

No comments:

Post a Comment