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.

Wednesday, May 9, 2018

Analysis of Frasers Logistics and Industrial Trust - Growing the portfolio to become a big boy in the market

Current Price on 30th April 2018 = $1.08
  • Yield = 6.67%  
  • Price-to-book Ratio = 1.152
  • Assets per unit = $1.39
  • Debt per unit = $0.453 (including current liabilities)
  • Gearing = 32.6%
Frasers Logistics and Industrial Trust caught my eye because of its relative high yield compared to the rest of the Industrial REITs. Although it is still not within my target, it is worth a look.

With a yield of 6.67%, it is actually higher than most of the bigger Industrial REITs in SGX. Ascendas REIT is yielding at 5.90% and Mapletree Industrial Trust is yield at 5.8%. Being one of the bigger boys in the market, it does seem attractive. Its price-to-book ratio is 1.152 which means it is trading at 15% premium. It gearing is at 32.6% which is quite low.

With the acquisition of the Europe portfolio, it is set to grow bigger which is good for the REIT. But the details are key and it does have room to price it such that it is good for existing REIT unitholders. With this purchase, it does become much bigger and therefore more stable so probably it is justified why it is trading at low yield and premium to NAV. However, it is still not within my target of 8% and it is still trading at a premium so I won't be considering it.

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