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.

Monday, June 6, 2016

Analysis of Fraser Logistics and Industrial Trust - An Australian REIT IPO on SGX... Is it a good buy?

IPO Price = $0.85 - $0.89 (Analysis is based on $0.89)
  • Yield = 7.00%  
  • Price-to-book Ratio = 1.084
  • Assets per unit = $1.157
  • Debt per unit = $0.336 (including current liabilities)
  • Gearing = 29.0%
Another REIT listing is coming up soon which is bigger than Manulife US REIT. This time, the properties are all in Australia and they own industrial properties. With a mistake that I have made through Manulife US REIT IPO in mind (I haven't had time to post my reflection), here are the statistics.

Yield is at a modest of 7% which I think is quite low because most of the industrial REITs in SGX are yielding higher at 8 - 9% at least. E.g. will be AIMSAMP Industrial Trust Some also hold some Australian properties. E.g. Ascendas REIT. Price to book ratio is at 1.084 which I thought was quite expensive considering that most REIT are trading at below NAV. Gearing is at 29.0% which is low by industry standards (and that is good).

Manulife US REIT IPO has given me a lesson that even though it is priced at the top end, things may just go wrong so it fell to below IPO price. Something is wrong which I can't comprehend so I have decided to stick to the fundamentals and just look at the statistics. To be frank, it is not worth it. There are many industrial REITs that are trading at much favourable statistics currently. If you really want some Australian properties exposure, I suggest AIMSAMP Industrial Trust or Ascendas REIT. They offer higher yield and cheaper properties. I am not applying for this IPO.

*** Thank you readers for highlighting a misunderstanding while reading my blog. My bad and I have updated. :-)***
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2 comments:

  1. MJune 8, 2016 at 9:03 PM

    have u calculated Ascnedas REIT div yield, its yileding sub 6% and trades above NAV, yur facts above not corrcet

    ReplyDelete
  2. usurperJanuary 29, 2017 at 9:56 PM

    I concur. Myopic analysis

    ReplyDelete

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