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 $3,800/month.

Friday, June 29, 2012

Analysis of FCOT after Refinancing


Current Price on 29th June 2012 = $1.00
  • Current Yield = 7.47%
  • Price-to-book Ratio = 0.671
  • Assets per unit = $2.803  
  • Debt per unit = $1.312
  • Gearing = 46.8% (not considering CPPU as assets, updated date 25th April 2012)
  • Secured NAV = $0.387 (37.5%)
FCOT recently announced their refinancing progress which is very much favourable as the interest is much lower. (about 100bp lower). It is good for us as investors as dividends should increase. I have estimated the increase to be 10% which gives a yield of 8.22%. This is excluding their plans to sell Keypoint and various resolutions which they have tabled for vote. If we include their plans for Keypoint and various resolutions, I estimate that the dividends should increase by another 10% which gives us a total yield of 9.04%. 


Looking at the forward yield, it fulfils my criteria. Plus the rest, I believe it is one REIT worth investing now. Ever since the announcement, it has moved up by quite a lot (from $0.95 to $1.00)

I am vested with 20,000 shares and will continue to hold to enjoy the dividends given to me. If I have extra cash (I do not have now), I will consider increasing my holdings for this.

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