- Yield = 6.52%
- Price-to-book Ratio = 0.952
- Assets per unit = $2.732
- Debt per unit = $1.146 (including current liabilities)
- Gearing = 41.9%
- Secured NAV = $1.586 (105% of trading price)
I remember that I was once an investor in Fraser Commercial Trust and it has yield me great returns over the years before I finally sold it in 2013 (I think). To revisit it again is just like looking for an old friend. Anyway, they reported their results which is outstanding as they increase their DPU by 20%. Even if it is compared to the last quarter, it is still an improvement of about 10%.
With yield at 6.52%, it is quite comparable to Keppel REIT. However, their price-to-book ratio is 0.952. Keppel REIT is lower at this point. One more difference is that its secured NAV is 105% of its trading price as all their debts are unsecured and this is attractive because the margin of safety is much higher. Gearing is higher at 41.9% though.
To compare Keppel REIT with FCOT is not easy. One holds top grade assets while FCOT holds relative good properties. With similar profile, it is very difficult to decide which one is better. For me, I look at stats only and I will choose FCOT as my choice if I were to buy office REITs.
With yield at 6.52%, it is quite comparable to Keppel REIT. However, their price-to-book ratio is 0.952. Keppel REIT is lower at this point. One more difference is that its secured NAV is 105% of its trading price as all their debts are unsecured and this is attractive because the margin of safety is much higher. Gearing is higher at 41.9% though.
To compare Keppel REIT with FCOT is not easy. One holds top grade assets while FCOT holds relative good properties. With similar profile, it is very difficult to decide which one is better. For me, I look at stats only and I will choose FCOT as my choice if I were to buy office REITs.
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