Fraser Commercial – What really matters in a REIT

Is always up to you to make the choice

Started in 2006 | Properties in Australia & Singapore | BAA3 Rating (Moodys

  1. IDENTIFICATION OF COMPANIES THAT ARE UNDERVALUED.

    • Price to Earning Ratio : 12.95 ( Below average)
    • Price to Book Ratio : 0.911 ( 9% discount on actual value)
  2. LEARN ABOUT THEIR NUMBERS

    • Gearing : 61.26% ( High dependency on debt to finance growth)
    • NAV : $1.53
    • Wale : 3.5 years (Short lease agreement)
    • Current Ratio : 2.29 (2 times the ability to pay off it liability if liquidated now)
    • Constant and increasing dividend payoutScreen Shot 2016-09-15 at 9.27.17 am.jpg

 

Overall, the company have a too high of a gearing ratio that makes me feel comfortable in investing and I do think that the gearing ratio will increasing in two years time where the most of their (31%) lease agreement will expire. I will look back in 3 years time.

+1 Knowledge point

+1 Future P.I 3 years time

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