Monday, July 13, 2015


I am loving this sweet REIT. Ever since i picked this 2000 shares last March, it has risen in price and given me good dividends.

Let's do a quick recap on this stock:

1. This is a Singapore commercial REIT with 9 cargo lift warehouse, 2 ramp up warehouses, 7 manufacturing warehouses, 1 Business Park, 1 High Tech Park, 4 Light Industries in Singapore. They also have 1 Business Park in NSW, Australia.
2. The occupancy rate is 95.8%, higher than the industry average of 90.7%
3. DPM = 16.3% increase
4. leverage = 31.4%
5. fixed debt = 86.2%
6. yield = 7.28%
7. NAV = 1.52

Total debt: 457.2 M

The financial statements all seem ok. Good cash flow - i see cash coming in mainly through operational activities. However, there is no development assets in the balance sheet. It could work both ways in the future - this may not be the best time to grow the portfolio, but not growing the porfolio would limit the potential returns to investor eventually. I would also need to review the DRIPS plan to ensure it does not excessively dilute shares.

My take:

Keep an eye on Singapore's economy and any changes to management. i think the management is on a good track currently. I will purchase on dips.  

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