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.

Thursday, February 26, 2015

Analysis of Global Investment Limited (Non-REIT)

Current Price on 24th Feb 2015 = $0.15
  • Yield = 10.00%  
  • Price-to-book Ratio = 0.699
  • Assets per unit = $0.216
  • Debt per unit = $0.001 (including current liabilities)
  • Gearing = 0.5%
  • Secured NAV = $0.145 (96% of trading value)
Global Investment Limited reported their results before CNY with results that I thought was just ok. Their dividend stays the same at $0.0075 (for 6 months) which translates to a 10.00% yield. Not bad. Moreover, their price-to-book ratio is only 0.699 which means you are buying it at a 30% discount.

One thing to note is the trading price which I watch closely as it reflects on the strength of the counter. At $0.15, I think the pricing is a bit on the low side as I am expecting $0.152. The reason is that for the past few half-years, they have gone XD at $0.145 quite consistently. With the current development, it may go below $0.145 or even beyond $0.14.

I am vested with more than 560,000 shares valued at $82,000. This is THE anchor investment that I have which have consistently gave me good returns more in the form of dividends. I have been participating in their reinvestment plans so my yield is much higher (at 11%). Whenever I need money, I will be able to sell the extra shares off (which I haven't done so at this point)

However, I am also aware of concentration of portfolio so I won't increase my holdings for this.

1 comment:

  1. What's your opinion if one wants to buy some tens of lots for dividend income? i.e. stable share price buy and hold for longer duration.

    If my projection the Fed will raise increase interest rate within 3 months - 6 months time 2015?

    (Investors may suffer capital losses on their investments in the event of an actual interest rate hike caused by an increase in expected distribution yield.

    Higher rates will decrease the market valuation of underlying Reit properties. )

    ReplyDelete