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, January 9, 2018

Analysis of ESR REIT - Aggressive Sponsor and Management on board

Current Price on 1st Jan 2018 = $0.565
  • Yield = 7.26%  
  • Price-to-book Ratio = 0.886
  • Assets per unit = $1.26
  • Debt per unit = $0.622 (including current liabilities and perpetual securities)
  • Gearing = 49.4%
  • Occupancy = 91%
ESR REIT has been aggressive in acquiring new properties and also selling properties to enhance the value of the REIT. Let's take a look at the statistics.

With the current price, we are buying at 7.26% yield but with the inclusion of the recent two acquisition, we may be looking at 9% yield which is higher than Sabana REIT and Viva Industrial Trust. If it really materialize, then this is probably one of the best REITs around. Moreover, its price-to-book ratio is at 0.886 which means we are buying at 12% discount to NAV which is still good for us.

I was wondering why the price has not gone up and probably is because there may be a rights issue coming up which sort of depressed the share price. I see this as an opportunity and probably will be making my move to increase my share holdings. I am currently holding on to 56,000 shares.

1 comment:

  1. Hi, I'm new to investing in reits so i'm curious (and if you don't mind giving pointers to fellow here) how you derive the gearing for all the co.?