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, November 28, 2016

Analysis of Frasers Hospitality Trusts - Direct Competition with Far East Hospitality Trust

Current Price on 22th November 2016 = $0.65
  • Yield = 8.02%  
  • Price-to-book Ratio = 0.809
  • Assets per unit = $1.28
  • Debt per unit = $0.477 (including current liabilities)
  • Gearing = 37.3%
Frasers Hospitality Trust recently has a drop in their price which resulted in an increase in their yield. Well, it is starting to fit my indicators so let's take a look at the statistics.

Yield is at 8.02% which is the highest among hospitality trust. However, their price-to-book ratio is 0.809. It means we are buying at 20% discount to NAV. Not very cheap though because there are other hospitality trusts which are cheaper i.e. Far East Hospitality Trust. With a gearing of 37.3%, it looks quite safe.

This is one with an international portfolio so it depends on the world economy as a whole (in contrast to Far East Hospitality Trust). With the yield at a good place, it is worth considering although Far East Hospitality Trust still seems better.

1 comment:

  1. Hi, could you share your excel to me? Thanks. My email: liewkianguo@gmail.com