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 9, 2012

Analysis of FCOT

Current Price on 9th Feb 2012 = $0.795
  • Current Yield = 7.56%
  • Price-to-book Ratio = 0.576
  • Assets per unit = $2.734  
  • Debt per unit = $1.352
  • Gearing = 49.5% (considering CPPU as liabilities)
  • Secured NAV = $0.193
FCOT has updated their results this month which shows a higher DPU and therefore a higher yield. Its assets and debts remain the same and I am still considering CPPU as liabilities.

This year will be a critical year as they will need to refinance these CPPUs. These CPPUs have a conversion price at $1.18 which nobody wants. Therefore, they will opt to receive cash and buy shares on the market. Thus, I am still expecting a cash call from FCOT to reduce gearing level.

I am also awaiting news about their refinancing efforts which I am expecting interest rates to be lower, thus boosting DPU.

Finally a surprise will be the sale of Keypoint at valuation price which will boost its trading price. It can also be used to redeem these CPPUs.

I have a total of 20,000 shares in anticipation of all those stated above even through its yield is below 8%. Will be looking at this closely

1 comment:

  1. Impressive yield and seems to be good stock to have in someones portfolio. Business Plan Writers will definitely recommend it for short run.