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%.