Stock Analysis 1: Frasers Centrepoint Trust 2015Q1

Market Price (2015-1-25) = $2.02

Earnings
Approx. EPU: $0.0292 * 4 = $0.1168 (Latest Quarter)
Approx. DPU: $0.0275 * 4 = $0.11 (Latest Quarter)

Approx. DPU: 2.88+3.022+2.875+2.75 = $0.1152 (TTM)

Ratios

Yield: 5.4%
P/E: 17

Balance Sheet

Gearing: (Borrowings / Assets) = (644+95)/2521 = 29.3%
Interest Cover: 6.27x
NAV: $1.85

Additional Info

Quarterly distributions in Jan/Apr/Jul/Oct

Personal Opinion:

- Price is now 9% above NAV.
- Current yield of 5.4% is pretty low for a REIT, considering the additional risk.

+ Stable and recurring earnings. Heartland malls is even more defensive than those in CBDs.
+ Proven management track records with 8 years of increasing DPU.

My cash cow. Many analyst are calling for PT of >$2.1. Personally, I think it's fairly valued already at this price with limited margin of safety.


*Note: In my analysis, I tend to always use the most conservative estimates. For example, I extrapolate Q1 results for the entire year when traditionally, Q1 is always the least profitable.