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, April 20, 2015

Analysis of Accordia Trust

Current Price on 16th Apr 2015 = $0.78
  • Yield = 10.06%  
  • Price-to-book Ratio = 0.89
  • Assets per unit = $1.915
  • Debt per unit = $1.033 (including current liabilities)
  • Gearing = 54.0%
Accordia Golf Trust recently caught my attention more because it is a Japan REIT which offers high yield. Here are the reasons.

It went down recently because of the falling Yen which depress its market value and its yield. However, recently it has stabilized and it looks like Singapore is also looking at easing our currency (although not now) to make sure that our economy is competitive. Thus, I am predicting that the S$/Yen will stabilized. It has stabilized at 87 Yen.

Thus, I used this data to calculate its yield, assets and debt per unit so that I have a good gauge of the overall NAV. I found that it is trading at 11% discount with a high yield of 10.06%. Even after this distribution, it will be almost 8% which to me is still favourable.

As I have $60,000 cash on hand currently and I will be considering this counter seriously together with LippoMall Retail Trust and GlobalInv to place my monies for yield.

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