On 21st Jan 2011 First RIET has released its full 2010 financial results.The key financial highlights are Gross Revenue Increased by 4.4% and Net Property Income increased 4.2%, and Asset Under Management increased 72.4%.
Now I would like to base on the latest financial data to work out my 6 selection criteria listed in my previous post:
Criteria #1: REIT Price Undervalued (current price < NAV)
Purchase price 0.76 < NAV 0.765 - passed
Criteria #2: High Dividend Yield (> 6%)
Base on 19th Jan closing price of 0.765 the current yield is 8.37% - passed
Criteria #3: Low Gearing Ratio (< 33%)
17.25% base on projection year 2011 - passed
Criteria #4: High Interest Coverage Ratio (> 5)
11.6 times - passed
Criteria #5: High NPI Yield (NPI / Gross Revenue >95%)
2009: 29,850 / 30,162 = 98.97%
2010: 31095 / 31,494 = 97.73 - passed
Criteria #6: History of Consistent Growth in Free Cash Flow & DPU
Since this REIT was listed on SGX on Dec 11, 2006 below are the key DPU & cash flow data (from 2007 to 2010).
DPU($0.01) CF from operations ($1,000) Cash & Cash Equivalents ($1,000)
2007 6.73 29,701 13,606
2008 7.62 20,644 12,417
2009 7.62 22,657 7,497
2010 6.63 27,554 27,593
For this criteria I would like to give half pass since there are no consistent growth trend base on past 4 years data.
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