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 $1,055/month.



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Thursday, November 20, 2014

OCBC 360 Account - 3.05% p.a.


I know that this is weird to show in this blog but I think I have to because it is such a great opportunity. I have opened this account and did all they need me to do for the past few months to earn the 3.05%. The results were amazing. There were months where I earn $18 interest just for deposits in that month.

To me, it is really a lot considering that I have been researching on how to have high interest in investments and now we have this account to earn so much interest which is risk-free. $18 per month equates to about $240 per year. Not bad actually.

Highly recommended.

Monday, November 17, 2014

Keppel Unit Secures Cornerstone Investors for IPO - WSJ - WSJ

Keppel Unit Secures Cornerstone Investors for IPO - WSJ - WSJ

Looks promising...

Analysis of Viva Industrial Trust

Current Price on 11th Nov 2014 = $0.795
  • Current Yield = 8.49%  
  • Price-to-book Ratio = 1.059
  • Asset Per Unit = $1.430
  • Liabilities per unit = $0.680
  • Gearing = 47.5%
Viva Industrial Trust has a few announcements which are important. The most important one is that they have announced their acquisition of two buildings which gives a 10.4% yield. For a small REIT like Viva Industrial Trust, this is a big acquisition. It will improve their yield to 9.49% which is very high, about 2% higher than the closest rival.

Their assets and liabilities went up as well, putting pressure on their gearing which is increased to 47.5%. Their price-to-book ratio still stands at an unattractive 1.059 which means we are paying 5.9% premium to their valuation. One more point to note is that their credit rating is BB+ which is not investment grade.

I remember AIMSAMP Industrial Trust was in this state as well with credit rating below investment grade. It took them a long time to achieve upgrade which substantially improves their trading price. For Viva Industrial Trust, I believe the same will happen. The question is whether you are willing to ride this journey with them.

9.49% from May 2015 onwards is very attractive (Considering that they will complete their purchase in Q4). I am thinking of switching half my holdings from AIMSAMP to Viva Industrial Trust.

Wednesday, November 12, 2014

Keppel data-centre trust set for IPO, News, News, AsiaOne Business News

Keppel data-centre trust set for IPO, News, News, AsiaOne Business News

Looks like there is another upcoming REIT which we can subscribe. Something new because it is a data centre REIT. Need to look at the statistics to determine whether it is good.

Monday, November 10, 2014

Analysis of Rickmer Maritime Trust

Current Price on 6th Nov 2014 = $0.29
  • Yield = 10.18%  
  • Price-to-book Ratio = 0.408
  • Assets per unit = $1.403
  • Debt per unit = $0.692 (including current liabilities)
  • Gearing = 49.4%

Rickmer Maritime Trust reported its results recently which gave us a good glimpse on their NAV. Yield remains the same at 10.18% which is very high.

They have registered a impairment charges of about $60 million which causes their NAV to drop by $0.04. This is about 7% of their NAV. With the expiry of their current high charter rates and there is no sign that it will recover to that rate, I think the valuation will continue to drop. This is a danger of this trust because we are not really sure how they get their NAV. (Unlike properties where it can be evaluated easily)

I am expecting more of this to happen which will cause pressure on its share price. Until they repay all their debts, I don't see why I should enter this counter again (after exiting earlier.)

Friday, November 7, 2014

Analysis of AIMSAMP Trust

Current Price on 6th Nov 2014 = $1.455
  • Current Yield = 7.62%  
  • Price-to-book Ratio = 0.953
  • Asset Per Unit = $2.334
  • Liabilities per unit = $0.807
  • Gearing = 34.6%

It has been almost two months since I posted. Had been busy with work so have not been monitoring closely.

AIMSAMP Trust has reported their results earlier which recorded an increase of almost 10% in its DPU. (2.77 cents per unit). Moreover, its NAV has also increased to $1.52 which is above its trading price.

Following all these, we have a price-to-book ratio of 0.953 which is a respectable ratio, a yield which is also strong at 7.62%. With the completion of their AEI, I believe the DPU will continue to increase.

There is a lot more properties which has AEI potential and it is increasingly behaving as a organic growth REIT. Their yield and NAV will continue to increase. The question is how fast or slow it is.

I still have quite a substantial holdings on this (40,000 shares & 11,000 in CPF). I have previously thought of selling it but since the increase in yield, I will need to think it through again.

Thursday, September 18, 2014

Analysis of Croesus Retail Trust

Current Price on 10th Sept 2014 = $0.945
  • Current Yield = 8.25%  
  • Price-to-book Ratio = 1.034
  • Asset Per Unit = $2.182
  • Liabilities per unit = $1.244
  • Gearing = 57.0%

Croesus Retail Trust is one on my watchlist although I have recently sold my holdings on it. Plus its recent acquisition and private placement, it is worth another look.

Its current yield is 8.25% which is one of the best yields that we can get. Moreover, its price-to-book ratio is 1.034 which means we are paying a premium of 3.4%. Compared to Saizen REIT which is trading at 22% discount and even Accordia Golf Trust which is trading at 7% discount, it does seem expensive. Nevertheless, the high yield justifies the price. Its gearing looks very threatening at 57% which I thought was too high. It also mean that the risk is high as well.

The yield really look attractive, something which I was considering (thus this post). But after looking at other data, I am just glad that I have sold my holdings earlier.