S-REIT Investment Blog: Analysis of Soilbuild REIT

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.

Tuesday, January 22, 2019

Analysis of Soilbuild REIT - A pleasant surprise

Current Price on 21st Jan 2019 = $0.605

Yield = 9.59%
Price-to-book Ratio = 0.961
Assets per unit = $1.176
Debt per unit = $0.547 (including current liabilities and perp securities)
Gearing = 46.5%
Secured NAV = $0.629 (104% of trading price)

Soilbuild REIT has published their results which has given me pleasant surprises. Let's take a look at the statistics.

The yield has increased to 9.59% which is very high, probably the highest in the market right now. Moreover, their price to book ratio is at 0.961 which means we are still buying at a discount although it is a small one. Gearing is at a high of 46.5% only because I have placed perpetual securities under debts instead of equity. It is still high so the risk is there.

It is a pleasant surprise because it is not easy to get such a yield now with reasonable margin of safety aka trading at discount to NAV. I am already holding on to 100,000 shares here, getting myself $1,450 as dividends in this cycle. I think it is great and I am considering adding more into my current portfolio.