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.

Tuesday, June 2, 2015

Analysis of Accordia Golf Trust

Current Price on 28th May 2015 = $0.78
  • Yield = 9.24%  
  • Price-to-book Ratio = 0.941
  • Assets per unit = $1.821
  • Debt per unit = $0.977 (including current liabilities)
  • Gearing = 54.8%
Accordia Golf Trust is one which I recently bought and sold quickly due to change of strategy. They announce their results which seems promising but its share pricing drop quite a lot as well.

Their yield is quite high at 9.24% which is calculated based on the quarterly statistics of 1.79 cents. Moreover, the price-to-book ratio is still at a healthy 0.941 although its previous estimate was better (and much better). Its gearing is actually very high 54.8% which is at dangerous level.

I have mention that Japan is printing money so its interest rates will continue to be low but it also means that the asset values will get smaller because of the drop in Japanese Yen. Although I believe there will be a revaluation upwards, the recent revaluation actually show otherwise.

I am just glad that I managed to sell it off before the drop so I am saved by the prompt decision. I will wait until it goes XD before looking at this again.

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