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 $1,052/month.

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Monday, July 21, 2014

Analysis of CapitaCommercial Trust

Current Price on 18th July 2014 = $1.71
  • Yield = 5.10%  
  • Price-to-book Ratio = 0.997
  • Assets per unit = $2.153
  • Debt per unit = $0.439 (including current liabilities)
  • Gearing = 20.4%
  • Secured NAV = $1.264 (73%)

CapitaCommercial Trust has reported its results which shows a different presentation. CapitaGreen and Raffles City debts are now not considered in its debt books. This is something which I don't really agree actually. The reason is that although if anything happens to RCS and MSO Trust would not affect its debt profile, it still does affect the valuation of its assets. 

CapitaCommercial Trust has consistently delivered for its unitholders both in distribution and enhancing its value. My concern is its trading price which is already quite high. Thus, its yield is consistently low at 5.10%. Moreover, its price-to-book ratio is already at 1 which does not offer incentive to purchase it anymore.

I will give it a miss as it does not achieve my criteria despite having stellar results. 

Monday, July 7, 2014

Sale of Rickmer Maritime Trust

Some time last month, I have a cashflow crunch which forces me to sell one of my holdings to raise cash for everyday use. It was a miscalculation and an elementary mistake on my part and selling investments for everyday usage should never happen. Nevertheless, I have to.

I sold 21,000 shares of Rickmer Maritime Trust at a price of $0.295. I sold it because I don't really see how the rental rates of these ships can recover to its current levels. The current rates are about 1/3 of their contracted rates which some is expiring soon. Thus, I took a pre-empt move to sell it even though there is another potential candidate actually.

I hope that I am right this time although it is now creeping up to $0.30. It solved my family cashflow problem so it is still good.

Tuesday, June 24, 2014

IPO Analysis of Fraser Hospitality Trust

IPO Price on 23rd June 2014 = $0.88
  • Yield = 6.90%  
  • Price-to-book Ratio = 1.068
  • Assets per unit = $1.446
  • Debt per unit = $0.622 (including current liabilities)
  • Gearing = 43.0%

Fraser Hospitality Trust has priced its IPO at $0.88 today without an indicative range. This is a good strategy for them but not for us because we won't be able to gauge the demand of this trust. Moreover, the yield at 6.90% is not really true because of a "top-up" as shown in their documents.

Looking at an earlier report in FinanceAsia (http://www.financeasia.com/News/387688,frasers-hospitality-trust-pre-markets-ipo.aspx) and assuming that they are correct, Fraser Hospitality Trust has priced it in the mid-point of their indicative range. It represent that it is a fairly-valued pricing and they are unwilling to pay more for this trust. 

My guess is that their opening price and its IPO price will be roughly the same so I won't be rushing into this IPO.

Monday, June 23, 2014

Money Saving Tips via Credit Cards

http://credit-card-offers-sg.blogspot.sg/

I have relaunched my blog on Money Saving Tips via Credit Cards after one year with no posting. It has been difficult but now I am going to focus on a few cards and more importantly, focusing on saving money based on a household of 4 adults and 2 children with a car staying in HDB flat. A dollar saved is a dollar earned.

At this point, I am saving about $840 per year just by using credit cards. It is just like having a zero dollar investment which generates a $840 return annually. That is about $70 per month.

Do support me and subscribe to it as I continue to update these two blogs to help everyone here. :-)

Friday, June 20, 2014

Germany’s I REIT Global Said to Plan $300 Million Singapore IPO - Bloomberg

Germany’s I REIT Global Said to Plan $300 Million Singapore IPO - Bloomberg



This is one surprising news for me as I did not expect them to list in SGX. May be a good opportunity and we need to look at the statistics to determine.



Seem very interesting coming July.

Monday, June 2, 2014