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 $3,800/month.

Wednesday, February 9, 2011

Analysis of FCOT

Current Price on 9th Feb 2011 = $0.875
  • Current Yield = 5.71%
  • Price-to-book Ratio = 0.593
  • Assets per unit = $2.715 
  • Debt per unit = $1.239
  • Gearing = 45.6%
  • (Above valuation excludes CPPU)
FCOT is one of the smallest and arguably the weakest office REIT listed on SGX. This is reflected on its share price which is at a steep discount to its NAV value. Moreover, its yield is currently very low at 5.71% although still higher than CCT and K-REIT. 

I think that there is a lot of potential for this REIT to improve its yield without acquisition. Since the office rent is on a upward trend, I shall wait and see whether there is improvement in the yield before even considering it. However, its price-to-book ratio is very attractive actually. I might be willing to invest if the yield reaches 7%. 

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