General S-REITs Discussion Thread

[Genosis]

NPI is like the actually earnings?

Not really 'earnings'.....more like rental income.

I also look at 'Distributable Income'. If this is getting higher, it is usually a positive sign.

 

[SpeedingBullet]

looking at fraser centerpoint trust, the free cash flow or AFFO seem to be negative most of the time for the past 6 yrs

did i make a wrg evaluation? cmt and sph reit looks ok to me

Try not to use FCF for REITs, sometimes can be a b1tch to calculate.

Huh no ah, my latest AFFO calculation (FY2014) for FCT is $83.54m. FFO is $85.14m, so the difference is its capex of $1.6m.

Like Genosis mentioned, NPI is a gd indicator. Basically use that, then aggregate all its investment properties and divide NPI by them, it'll give you the average property yield of the REIT (in real estate terms they call it cap rate iirc).

Most REITs their cap rate is inline with their dividend yields. If CR exceeds DY, it's a good sign (parkway life REIT's CR exceeds its DY by like a full 1%, which is huge).

Another indicator (since u like FFO), is to use the FFO multiplier to value ur REIT (like the PE multiple). FCT (at my FFO) at the price of $1.84 trades at quite a rich multiple of 19.78x FFO. Again, just my noob 2 cents, still learning more abt REITs.

 

[Genosis]

Try not to use FCF for REITs, sometimes can be a b1tch to calculate.

Huh no ah, my latest AFFO calculation (FY2014) for FCT is $83.54m. FFO is $85.14m, so the difference is its capex of $1.6m.

Like Genosis mentioned, NPI is a gd indicator. Basically use that, then aggregate all its investment properties and divide NPI by them, it'll give you the average property yield of the REIT (in real estate terms they call it cap rate iirc).

Most REITs their cap rate is inline with their dividend yields. If CR exceeds DY, it's a good sign (parkway life REIT's CR exceeds its DY by like a full 1%, which is huge).

Another indicator (since u like FFO), is to use the FFO multiplier to value ur REIT (like the PE multiple). FCT (at my FFO) at the price of $1.84 trades at quite a rich multiple of 19.78x FFO. Again, just my noob 2 cents, still learning more abt REITs.

Nice sharing.

U no longer holding any Ascendas REIT right?

 

[yihao93]

High lvl convo sia... Sad to say I don't understand much of it

 

[SpeedingBullet]

Nice sharing.

U no longer holding any Ascendas REIT right?

Bo, dont regret selling though haha.

Only reit im holding is Lippo.

 

[Layers]

Try not to use FCF for REITs, sometimes can be a b1tch to calculate.

Huh no ah, my latest AFFO calculation (FY2014) for FCT is $83.54m. FFO is $85.14m, so the difference is its capex of $1.6m.

Like Genosis mentioned, NPI is a gd indicator. Basically use that, then aggregate all its investment properties and divide NPI by them, it'll give you the average property yield of the REIT (in real estate terms they call it cap rate iirc).

Most REITs their cap rate is inline with their dividend yields. If CR exceeds DY, it's a good sign (parkway life REIT's CR exceeds its DY by like a full 1%, which is huge).

Another indicator (since u like FFO), is to use the FFO multiplier to value ur REIT (like the PE multiple). FCT (at my FFO) at the price of $1.84 trades at quite a rich multiple of 19.78x FFO. Again, just my noob 2 cents, still learning more abt REITs.

Wa need to digest. Think i use the simplier method. Will be back with more qn.

Mayb my FFO is wrg liao

 

[Layers]

Ascendas Reit not recommended to get now?

 

[SpeedingBullet]

Wa need to digest. Think i use the simplier method. Will be back with more qn.

Mayb my FFO is wrg liao

how didja calculate ur FFO?

Ascendas Reit not recommended to get now?

I never recommend stocks, but my personal reason for letting go of Areit is cos of the macro picture. Industrial REITs can't grow much anymore. Although AReit has recently been proving me wrong by venturing overseas (who would've thought of that? ) in a big way (buying up OZ ppties) to diversify income.

 

[Layers]

how didja calculate ur FFO?

I never recommend stocks, but my personal reason for letting go of Areit is cos of the macro picture. Industrial REITs can't grow much anymore. Although AReit has recently been proving me wrong by venturing overseas (who would've thought of that? ) in a big way (buying up OZ ppties) to diversify income.

FFO = net cash after operating expense + depreciation?

wa economic, i is noob, micro and marco

 

[SpeedingBullet]

FFO = net cash after operating expense + depreciation?

wa economic, i is noob, micro and marco

Net cash? Whaaa? Your formula is 3/4 finished.

Grabbed this off the first google search:
"Funds from Operations = Net Income + Depreciation + Amortization - Gains on Sales of Property"

Ok so referring to their fy2014 report here, cos FFO/AFFO is a US GAAP thing and not SG, I use a simplified version. I simply take net income (Which in their FY2014 is $85m) to get FFO. Why?

Cos that figure already excludes any valuation gains from derivatives, gains on sales of ppties and income from associates. D&A is left out cos apparently SG accounting conveniently excludes D&A from REITs' investment ppties unlike in the US (which is a massive number). FY2014's depreciation was like what.. $41,000? It's immaterial to $85m in FFO.

Then to get my AFFO I simply subtracted their capex of $1.473m, $33k and $90k in acquisition of fixed and intangible assets from FFO.

Now compare FCT's annual report above with Boston Properties REIT in the US. Look at the income statement, their D&A is massive, that's why FFO is more suited for US REIT valuations than SG, although you can modify (like I did) it to suit our market here. So I think that's where you got confused.

 

[NewInvestor]

Is anyone holding Mapletree GCC? Price has been moving down recently. Its potential yield is now nearly 8%.

Does anyone have views on whether to buy or sell it?

 

[Genosis]

Is anyone holding Mapletree GCC? Price has been moving down recently. Its potential yield is now nearly 8%.

Does anyone have views on whether to buy or sell it?

I am still holding but not adding.

Gearing is rather high after their latest acquisition. 41%

 

[Darkzi0n]

can't wait for tml... want to buy some reit.

 

[Litmuss]

can't wait for tml... want to buy some reit.

Why need to buy tmr? Not like reits price gonna rise anytime soon.

 

[Darkzi0n]

Why need to buy tmr? Not like reits price gonna rise anytime soon.

moi no expert, dunno when it will fall, how much it will fall, or when it will rise. so if i see something i like and the valuation is reasonable i jus buy loh.

 

[Layers]

moi no expert, dunno when it will fall, how much it will fall, or when it will rise. so if i see something i like and the valuation is reasonable i jus buy loh.

aiming which sector?

 

[Darkzi0n]

aiming which sector?

Healthcare. Plife. Loaded 2 lots Liao

 

[Layers]

Healthcare. Plife. Loaded 2 lots Liao

wanted Plife too but find it overvalued

 

[Perisher]

wanted Plife too but find it overvalued

The good ones tend to be.

 

[Layers]

The good ones tend to be.

overvalued but fair?