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, January 29, 2015

Analysis of Keppel REIT

Current Price on 23rd Jan 2015 = $1.235
  • Yield = 6.39%  
  • Price-to-book Ratio = 0.909
  • Assets per unit = $2.169
  • Debt per unit = $0.811 (including current liabilities)
  • Gearing = 37.4%
  • Secured NAV = $1.142 (92.5% of trading price)
I resume researching on Keppel REIT because of its acquisition of MBFC Tower 3 and its relative high yield compared to other office REIT. So here is the statistics.

Yield is at 6.39% which is one of the highest among all the office Reits holding Singapore properties. FCOT is higher though. Moreover, they pride themselves to hold one of the youngest and most exciting properties in the Singapore's financial district. With a price-to-book ratio of 0.909, it is trading at 9% discount. Imagine buying MBFC at 9% discount? Moreover, they have a pretty high secured NAV which is 92% of its trading price. The margin of safety is also strong.

Considering that it is an office REIT which holds such assets, I think this is something worth considering (That's why I research on it). Bear in mind that they have a pretty strong rival and that is Fraser Commercial Trust.

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