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.

Thursday, May 30, 2019

Analysis of Eagle Hospitality Trust - A rare opportunity after price drop.

Current Price on 30th May 2019 = US$0.70
  • Yield = 9.13%  
  • Price-to-book Ratio = 0.795
  • Assets per unit = $1.541
  • Debt per unit = $0.66 (including current liabilities)
  • Gearing = 42.3%
Eagle Hospitality Trust has just been listed at a price of $0.78. It is under-subscribed which means there is very little demand and it is natural that the price dropped to US$0.70. However, now at this price is it very attractive? Let's take a look at the statistics.

The current yield is at 9.13% which is extremely high. Only LMIR has a higher yield but it is based in Indonesia while Eagle Hospitality Trust is at the United States. Moreover, its price-to-book ratio is at 0.795 which means we are buying at a 20% discount which is also attractive. Gearing is at 42.3% which is quite high actually.

I subscribed 5,000 shares through IPO which I regretted because I did not really look at the news relating to this IPO. However, after the price drop, I thought that it is attractive enough so I bought another 30,000 shares at $0.705. It is still at this price but I am a long-term investor so, with this price which I thought was fair, I will be enjoying the dividends that they are giving out.

1 comment:

  1. what do u think of the Queen Mary asset?
    Income generating or time bomb.