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.

Friday, October 20, 2017

Analysis of Soilbuild Business Space REIT

Current Price on 18th October 2017 = $0.69
  • Yield = 7.97%  
  • Price-to-book Ratio = 0.965
  • Assets per unit = $1,217
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 41.2%
  • Secured NAV = $0.548 (78% of trading price)
Soilbuild Business Space REIT has been in the limelight for the wrong reasons. Firstly, one of their tenants could not pay rent so income is impacted. Moreover, one of their properties is still almost vacant and it is affecting income and also underlying value. Let's take a look at the statistics.

Yield is currently at 7.97%. It is supposed to be higher but their DPU dropped by quite a bit comparing to the previous quarter so it is a concern. Price-to-book ratio is at a good 0.965 which means we are buying at a 3.5% discount. Not a lot but not so bad either. Gearing is at 41.2% which does not allow any inorganic growth. It has secured NAV which is close to 80% of their trading price. It serves as a margin of safety although not really safe either.

I am vested with 100,000 shares which I intend to hold and it gives pretty high yield relatively. However, things are getting tricky now and I am not sure whether the DPU will continue to drop. Hope that it is not as much. Not exciting but not worth to change as well.

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