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Frasers Commercial Trust - A quick comparison


 
Extracted from https://fcot.frasersproperty.com/financial_information.html

Quick Look at ratios

Yield 
6.7% based on last traded share price of 1.43

Gearing

28.4%

Price to book
0.916

How does this compare to similar REITS?


Yield Gearing  P/B
Capital Com Trust 4.48 34.9 1.1
K Reit 4.45 36.3 0.9
Mapletree Commercial Trust 5.11 34.8 1.2
OUE Com REIT 8.16 39.3 0.7


Average 5.55 36.325 0.975
FCOT 6.6 28.4 0.92



FCOT has significantly lower gearing than its counterparts after recently disposing of its stake in 55 Market Street.  In any case, the Fed has turned decidedly less hawkish and we might end up seeing no rate hikes for 2019.  

There is now much anticipation as to whether negotiations with Google have yielded any positive outcome which would lead to a significant recovery of the occupancy rates of its Singapore assets.

The significant debt headroom may also provide further upside catalyst, provided the Management can identify and pounce on yield-accretive acquisitions.  Given the strength of its Sponsor, one may be forgiven to hold some optimism in this regard.


At least for now, the ratios seem to suggest that there is some margin of safety to enter FCOT while waiting for the above price catalysts to crystallize. Meanwhile the yield of >6% is nothing to scoff at.

Vested.

DYODD.

Onward to FI my friends!

Comments

  1. CoryMarch 27, 2019 at 6:29 PM

    I remember there is occupancy issue. Need them to update...

    ReplyDelete
    Replies
    1. Edwin DaiMarch 28, 2019 at 10:56 AM

      Yes indeed, I am hoping to hear good news for ATP. The low (70%) occupancy rate has been a dampener on the share price for far too long.

      Delete

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