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.

Thursday, February 23, 2012

Analysis of FCOT (New Acquisition)

Current Price on 17th Feb 2012 = $0.815
  • Current Yield = 7.77%
  • Price-to-book Ratio = 0.59
  • Assets per unit = $2.734  
  • Debt per unit = $1.352
  • Gearing = 49.5% (not considering CPPU as assets, updated date 25th April 2012)
  • Secured NAV = $0.387 (47.5%)
FCOT has announced a new acquisition which I believe is good for the REIT. Firstly, it is yield-accretive so we are enjoying a higher distribution. Secondly, it is financed through available cash and bank borrowings which I am assuming to be using current facilities. Thus, this property is unencumbered, which therefore boost its secured NAV to $0.387 (47.5% of trading price).

Its other factors which I have discussed earlier has not come into play yet so this is a pleasant surprise. Will continue to look at this closely as I am vested with 20,000 shares.

*** I realize that in my excel sheet, I have "not considered CPPU as assets" rather than "CPPUs as liabilities". Therefore, the changes have been made. My analysis remain the same. Apologies to all who have followed my blog.****

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