Welcome

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 $4,200/month.

Thursday, July 28, 2016

Analysis of Fraser Commercial Trust

Current Price on 25th July 2016 = $1.345
  • Yield = 7.17%  
  • Price-to-book Ratio = 0.881
  • Assets per unit = $2.563
  • Debt per unit = $1.037 (including current liabilities)
  • Gearing = 40.5%
  • Secured NAV = $1.526 (113% of trading price)
Fraser Commercial Trust has recently published their report which also include an upgrade in their credit rating and this will lead to lower borrowing cost and further confidence. Let's take a look at the statistics.

Yield is at a respectable 7.17% which is in my holding zone aka if I have I will hold but if I don't have, I won't buy. However, their price-to-book ratio shows a 12% discount to valuation which is favourable. What is most attractive is that its secured NAV is 113% of its trading price. This is on the assumption that it liquidates it now or someone buys over at NAV.

Fraser Commercial Trust was once my anchor investments but no longer now. Their yield is not high enough to be attractive for my portfolio. I will still monitor and wait for the price to come down.

2 comments:

  1. Yes ! Indeed, the AEI at CSC and leasing from HP is giving much uncertainty for this counter, Kyith from Investmentmoat is having very good analysis on this recently.

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