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, February 2, 2015

Analysis of OUE Commercial REIT

Current Price on 26th Jan 2015 = $0.82
  • Yield = 7.02%  
  • Price-to-book Ratio = 0.747
  • Assets per unit = $1.927
  • Debt per unit = $0.829 (including current liabilities)
  • Gearing = 43.0%
  • Credit Rating = Ba1
OUE Commercial REIT has just reported its results recently which improves its yield and NAV. I think it is a good news so spend time to get more statistics.

Yield is at 7.02% which is much higher than Keppel REIT and Fraser Commercial REIT. Moreover, its price-to-book ratio is probably one of the best currently at 0.747. This means that you are getting these properties at about 25% discount. Recently, they got their independent valuation of their properties which shows an increase in its NAV.

One downside note is that their gearing is quite high at 43.0% and its credit rating is at Ba1 which is not investment grade. Its credit rating is probably one of the worst among REITs listed in SGX (excluding those which did not obtain one, but their gearing is limited at a maximum of 35%)

I am glad that I am looking at this counter after researching on FCOT and Keppel REIT and would probably invest in this with strong and favourable yield and NAV.

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