SPH reit

This is my first post! Decided to create a blog to document all my learnings, investment etc as i find it meaningful to see my learning curve!

I have decided to splash $4,500 of my hard-earned savings on SPH reit - priced at $0.90/share. (subject to balloting)

What i really like about SPH reit is that,  despite its rather low yield of about 5.5% (which would earn me about $270/year), it has rather fundamentally strong SPH as its backing. In addition, it has rather healthy gearing ratio of <30% which means that it has relatively low debts to its equity. With Paragon and Clementi under its properties, I would say both are rather strategically located which would enjoy good crowd. Both malls are enjoying 100% occupancy as well. Future rental prices are likely to increase, and with asset enhancement strategy, its future growth can be anticipated (slow growth though).

I would say that investing on SPH reit is a rather low risk investment which would guarantee respectable dividend yield, which encouraged me to fork out the money to dive into this IPO.

Based on reports, apparently it is receiving extremely strong demand from institutional  and private investors. So i might predict that during its first few days after listing (25 July), the demand is likely to push up the share price of 90 cents. Nevertheless, that is my not my main focus as i am planning to hold it for long-term! - enjoy unrealized gains (if share price goes up) and dividends! Well, like what Warren Buffet said, we should buy a stock and have the intention to hold it indefinitely!

Till then!

SGBoy94