Investing in Singapore banks?

Just read an article in CNA and I am just thinking out loud if it is still a good idea to invest in Singapore banks?

Southeast Asia's biggest bank has said demand for home and car loans in Singapore has plunged this year following government measures to cool inflation.

DBS Group's chief executive, Piyush Gupta, told Channel NewsAsia new home loan demand fell by 50 to 60 per cent last month.

He said lending this year is unlikely to match 2012.

.... Mr Gupta said much of the bank's Singapore operations lose money and Indonesia is the focus for growth this year.

Read full article: here.

Related posts:
1. More cooling measures on the way?
2. Cooling measures for cars.

First REIT: DPU to increase!

First REIT is going to acquire two new hospitals in Indonesia for $190.4 m.

1. Siloam Hospitals Bali.
Purchase price: $97.3 m.
Annual base rent: $9.7m.
Financed by a drawdown of committed debt facility.

2. Siloam Hospitals TB Simatupang (South Jakarta).
Purchase price: $93.1 m.
Annual base rent: $9.3m.
Financed by a combination of a drawdown of committed debt facility and issuance of new units to the REIT's sponsor.

For anyone investing for income, an important question is how would these actions affect the DPU?

Well, even with the issuance of new units to the REIT's sponsor, unitholders will still enjoy a 5.47% increase in DPU on a per annum basis. The estimated full year DPU including these acquisitions is 6.94c.

Mr. Market certainly likes the news as the REIT's unit price rose 3.5c to close at $1.23 per unit. At this price, the projected distribution yield is 5.64%.

Yield has certainly compressed very much compared to those days when I bought at between 42c to 76c per unit.

So, is it still good to buy at current prices? It would depend on what is our definition of "good".

See announcement: here.

Related posts:
1. REITs: When to buy?
2. Do not love unless it is worth the loving.