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, September 29, 2015

Analysis of IREIT Global - A unique Europe REIT with Euro currency risk

Current Price on 28th Sept 2015 = $0.63
  • Yield = 10.62%  
  • Price-to-book Ratio = 1.05
  • Assets per unit = $1.104
  • Debt per unit = $0.503 (including current liabilities)
  • Gearing = 45.6%
IREIT Global is a unique Euro REIT with all their properties based in Germany. Their statistics are also quite unique.

Yield is at a high of 10.62% which is one of the highest in SGX. In fact, it is the highest yielding REIT (second to Accordia Golf Trust but Accordia Golf Trust is dependent on members playing golf in their golf course). However, its price-to-book ratio is 1.05 which means we are paying a premium for these properties. Well, there is no other comparable REITs in SGX which has Europe exposure so we have to take it as such. Gearing is at a high of 45.6% which in Singapore's standard is quite high. Therefore, it reflects the risks.

The price has been dropping quite steadily to $0.63 which resulted in their high yield. I am monitoring this counter and hopefully get more info about Germany property market before I make a decision. I am vested with 1,900 shares (a very small portfolio)

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