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.

Monday, September 26, 2016

Rights issue of Frasers Hospitality Trust - Aftermath

Current Price on 23rd September 2016 = $0.70
  • Yield = 7.45%  
  • Price-to-book Ratio = 0.872
  • Assets per unit = $1.286
  • Debt per unit = $0.502 (including current liabilities)
  • Gearing = 39.0%
It has been a while since I posted an analysis. I guess the busyness has taken a toll on me. Will try to get the rhythm back. Here is the another analysis on FHT. Fraser Hospitality Trust has recently announced their rights issue. While I missed the earlier deadline, it is still worthwhile to look at it.

Yield is at a modest 7.45% which is quite comparable to its peers, especially after it dropped from the TERP price they published which is $0.745. Its price-to-book ratio is also at 0.872 which means we will be buying at 13% discount. Having said that, there are other hospitality trusts which are trading at cheaper valuations like Far East Hospitality Trust.

With all these analysis, I think it is still not attractive enough to be considered, considering that other hospitality trusts are trading at the same yield with lower price-to-book ratio. I still won't consider this in my portfolio. 

1 comment:

  1. Why don't you think that this is better then the others since its broadly comparable