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.

Thursday, December 18, 2014

Analysis of Accordia Golf Trust

Current Price on 15th Dec 2014 = $0.745

Accordia Golf Trust has dropped quite a bit recently, back to the low of $0.745. I have read an analysis report which says that it is quite low and it is attractive. I believe that he has based his analysis on these statistics.
  • Yield = 9.13% (11.81% for the first year) (Or is it?...)
  • Price-to-book Ratio = 0.809 (Or is it?...)
  • Assets per unit = $1.920 (Or is it?...)
  • Debt per unit = $0.999 (including current liabilities) (Or is it?...)
  • Gearing = 52.0% 
However, I have also noted that Japanese Yen has dropped from 80 Yen to about 95 Yen per Singapore Dollar which is almost a 20% drop. So here is my revised statistics.
  • Yield = 7.30% (9.45% for the first year) 
  • Price-to-book Ratio = 1.011
  • Assets per unit = $1.536 
  • Debt per unit = $0.799 (including current liabilities) 
  • Gearing = 52.0% 
This statistics is very much the same as when Japanese Yen is at 80 Yen per Singapore Dollar and its trading price is at about $0.93. Thus, I am basing my analysis on the revised data and I don't think it is as attractive as what the original statistics. I remember LippoMall Retail Trust suffered the same problem when Rupiah dropped against Singapore dollar.

With so many REITs around and some owns only overseas properties, it is important to look at the currency exchange as well just to make sure that the statistics still stands.

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