REITS

Ever since I decided that the best route was dividend shares, I have taken a new found interest in REITs. The REIT market in Singapore has also gained a lot of attention and there was this very interesting table compiled in the Straits Times over the weekend.

This would certainly be useful in my assessment of REITs since the gearing ratio and dividend yield is provided for! honestly, i am not too concern about the fee if there is still a good dividend ratio going on. You deserve your fee if you are good at what you do. Gearing ratio is something I certainly need to look at now, in light of the current rising interest rates.

With this in mind, I did a quick sieve method of zero-ing in on Reits which had 1) less than 35% gearing ratio and 2) at least 6% dividend yeld, i had a nice list of the following (in order of the most fee as % of revenue to the least):

Name of Reit	Current Price	PTB	Free Cashflow
Far East Hospitality Trust	0.77	0.7	1.4
First REIT	1.39	1.3	6.4
OUE Hospitality Trust	0.94	1	7.1
Cache Logistic Trust	1.14	1.2	8.2
IReit Global
Keppel DC Reit
CDL Hospitality Trust	1.63	1	7.1
Lippo Mall Retail Trust	0.35	0.6	13.8
Cambridge Industrial REIT	0.68	1	7.3
CapitaLand Mall Trust	2.14	1.1	2.3
Aims AMP Industrial Trust	1.505	1	8
Ascendas REIT	2.4	1.1	5.6
CapitaLand Retail China Trust	1.635	0.8	7
Mapletree Industrial Trust	1.555	1.1	7.1
CapitaLand Commercial Trust	1.535	0.9	5.4

Honestly, the figures may not be the most accurate since i got these off Straits times, and then investment moats dividend screen tracker. But this serves as a useful guide to me to review these shortlisted stocks to see which ones i am keen on, and what is a good buy price. I am quite disappointed that my Ascenda India Trust and Ascendas Hospitality Trust is not in there. So if good opportunities abound, I should consider moving my funds from existing REITS to new REITs. 

Going to step up on my research!

AIMS AMPI REIT

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.  

Inspired to blog (seriously) again

It has been nearly three and a half years on since my last post on Wing Tai. Sadly, I have not done major thinking / investing in these three and a half years. My personal life has moved in leaps and bounds though - I changed jobs (for a worse deal in monetary terms) but I got married and have a one year old baby. I also bought my own property to live in since I got married.

So what inspired me to post this? This post. Not merely because the author's life resonates with my life - growing up in a lower middle income family and my (used-to) endless comparisons with others on money BUT because of the sagely advice the investing community gave to him after. It warms the cockles of my heart knowing that as much as the investing community is about making money, we are making money for a purpose, not as an end in itself, and that we truly care about imparting the right values to others.

Anyway, since this is a financial blog, I have decided to discuss the recent additions to my small portfolio and to share my portfolio through this platform. Hopefully, this will spur me to be more disciplined with my investments.

SIA Engineering 

I bought 1 lot of SIA Engineering at 3.78 recently. Reasons for buying this share? Click here for key statistics.

1. I have decided that dividend stocks are the way to go in this 6 year bull market. SIA Engr has a dividend yield of 4.6%
2. 5.42B market cap and gross profit of 796M. If gross profits remains the same, it would take about 7 years to break even, assuming that I had paid in full to a private buyer for this company. In other words, this is a company that a real investor would be keen in.
3. Leverage free cash of 40 m. Cash is king!
4. Growing industry. We are expanding to have even more terminals. i.e. even more planes to land in Singapore. Surely SIA engineering would have better business? Also, with the boom in budget airlines, i think more servicing would be required.

Not so good stuff:
1. Unfortunately, i never really read why the yoy quarterly earnings is a negative sum
2. book value per share is only 1.16, which means i am overpaying by 4 times (P/B ratio) for my shares
3. PEG ratio of 3.75 seems a bit high to me
4. only bought one lot because i wanted to conserve my smallish war chest.

AIMS AMPI REIT

I bought 2 lots of this REIT. Reason for buying this share?
1. high dividend yield. remember? i want to go into dividend stocks now.
2. commercial properties / warehousing / logistics space. I think warehousing is something that would be highly in demand in the future. With more online shopping / online shops, these shops need space.

Updates on Wing Tai 

Since my last post was on Wing Tai, i will give a short update. I held Wing Tai through the years, and sold it off early last year. I did not sell during the share buy back. My selling price was 1.95. Pretty ok, but it went up as much as 2 dollars plus after that. I am still looking at it - when it went down below 1.7 i really wanted to buy recently but did not make the purchase. Property market is shaky (which sucks for me) but in the long run, i think Wing Tai will still do well.

I will try to share my portfolio the next time. For now, I plan to sell off some US shares to get more power for my war chest!