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, November 10, 2014

Analysis of Rickmer Maritime Trust

Current Price on 6th Nov 2014 = $0.29
  • Yield = 10.18%  
  • Price-to-book Ratio = 0.408
  • Assets per unit = $1.403
  • Debt per unit = $0.692 (including current liabilities)
  • Gearing = 49.4%

Rickmer Maritime Trust reported its results recently which gave us a good glimpse on their NAV. Yield remains the same at 10.18% which is very high.

They have registered a impairment charges of about $60 million which causes their NAV to drop by $0.04. This is about 7% of their NAV. With the expiry of their current high charter rates and there is no sign that it will recover to that rate, I think the valuation will continue to drop. This is a danger of this trust because we are not really sure how they get their NAV. (Unlike properties where it can be evaluated easily)

I am expecting more of this to happen which will cause pressure on its share price. Until they repay all their debts, I don't see why I should enter this counter again (after exiting earlier.)

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