S-REIT Investment Blog: Analysis of Global Investment Limited (Non-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.

Friday, September 12, 2014

Analysis of Global Investment Limited (Non-REIT)

Current Price on 8th Sept 2014 = $0.142

Current Yield = 10.56%
Price-to-book Ratio = 0.654
Assets per unit = $0.219
Debt per unit = $0.010 (including current liabilities)
Gearing = 4%
Secured NAV = $0.151 (105%)

Global Investment Limited is one of my anchor investment with slightly more than 563,000 shares worth almost $80,000. I have continued to increase my investment lately with a purchase of 135,000 shares at $0.14.

In August, they announce their scrip dividend issue which I have participated. For a total of 404,000 shares, I have obtained about 23,000 shares worth of dividend. If I divide 23000 by 404000, it translates to a yield of 11.3% which is much higher than the current yield. To me, it seems more like a deposit account with 11.3% interest paid semi-annually especially when its capital appreciation/depreciation is about 0%.

In the end, I am still looking at this counter for stable and predictable returns which suits my appetite and risk.