Singapore REIT Fundamental Analysis Comparison Table – 1 May 2016

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FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 722.93 to 734.98 (+1.67%) compare to last post on Singapore REIT Fundamental Comparison Table on April 10, 2016. The index stays above all 3 moving averages 20D/50D/200D SMA and also forming a “Higher High Higher Low” pattern indicates a clear up trend. However, it is important to take note that the 200D SMA slope is still sloping down. SGX S-REIT (REIT.SI) Index at 1127.56.

FTSE ST REIT Index May1-2016FTSE ST REIT Index May1a-2016

  • Price/NAV increases from  0.95 to 0.965 (Singapore Overall REIT sector is under value now)
  • Distribution Yield decreases from 7.33% to 7.1% (take note that this is lagging number). More than half of Singapore REITs (19 out of 37) have Distribution Yield > 7%. Current yield is attractive (for certain REITs only) but dangerous to make investing decision purely base on the yield. Past performance does NOT equal to future performance.
  • Gearing Ratio decreases from 35.04% to 34.92%.  23 out of 37 have Gearing Ratio more than 35%.
  • Most overvalue is Parkway Life (Price/NAV = 1.485),  followed by Ascendas iTrust (Price/NAV = 1.384).
  • Most undervalue (base on NAV) is Fortune REIT (Price/NAV = 0.668), followed by OUE Commercial REIT (Price/NAV = 0.682) and Far East HTrust (Price/NAV = 0.715).
  • Higher Distribution Yield is Lippo Malls Trust (9.97%) followed by Cache Logistic Trust (9.48%)
  • Highest Gearing Ratio is Croesus Retail Trust (46.3%) followed by iREIT Global (42.6%)
  • Note: Saizen REIT is removed from the table.


Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.

Singapore Interest Rate May1-2016

  • Singapore Interest Rate maintains at 0.13%

The Monetary Authority of Singapore (MAS) set the rate of appreciation of the Singapore dollar policy band at zero percent beginning 14th April 2016, shifting from a modest and gradual appreciation policy. The surprise decision came after preliminary data showed the island city-state economy grew by 1.8 percent yoy in the first quarter of 2016, unchanged from the previous two quarters. On a quarter-on-quarter basis, growth was flat. “This is not a policy to depreciate the domestic currency,” MAS said, adding that it only removed the modest and gradual appreciation path of the Singapore dollar nominal effective exchange rate (S$NEER) policy band that was in place. “The width of the policy band and the level at which it is centered will be unchanged,” it added. Interest Rate in Singapore averaged 1.67 percent from 1988 until 2015, reaching an all time high of 20 percent in January of 1990 and a record low of -0.75 percent in October of 1993. Interest Rate in Singapore is reported by the Monetary Authority of Singapore.


SIBOR May1-2016

  • 1 month decreases from 0.95801% to 0.73701%
  • 3 month decreases from 1.17904% to 1.00000%
  • 6 month decreases from 1.30251% to 1.23521%
  • 12 month decreases from 1.42913% to 1.37163%

Singapore Manufacturing PMI May 1-2016

  • The Singapore PMI rose to 49.4 in March of 2016 from 48.5 in the previous month, the highest since December of 2015. Factory activity remained in contraction for the ninth consecutive month, though new orders, exports, factory output and employment improved. Manufacturing PMI in Singapore averaged 50.13 from 2012 until 2015, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012. Manufacturing PMI in Singapore is reported by the Singapore Institute of Purchasing & Materials Management, SIPMM.


Technically Singapore REITs sector is starting an uptrend. The share prices of Singapore REITs with bigger market capitalisation (e.g. Ascendas REIT, CapitaMall Trust, Capita Comm Trust, Keppel REIT, Suntec REIT) have moved up significantly for the past 3 months. Thus, the valuation and distribution yields for these REITs are not so attractive compares to the second liners. As the Singapore REIT Index is moving into the bullish territory, it is expected the second liners of Singapore REITs with attractive valuation and yield to catch up eventually. However, it is important to note that NOT all the sectors are performing due to the weak economy outlook.

Find out Which Singapore REIT to Buy, Which Sectors to consider and When is the Right Time to Buy in the next Singapore REITs Investing class.




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Frasers Centrepoint Trust (FCT) Fundamental & Technical Analysis

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Frasers Centrepoint Trust Logo

Base on the Fraser Centrepoint Trust (FCT)  Q2-FY16 Earning Result on April 22, 2016.

  • Last Done Price = $1.95
  • Market Cap = $1.79 B
  • NAV = $1.91
  • Price /  NAV = 1.021 (2.1% Premium)
  • Price / NAV (High) = 1.49
  • Price / NAV (Low) = 0.95
  • Gearing Ratio = 28.3%
  • Occupancy Rate = 92.0%
  • WALE = 1.50 Years
  • WADM = 1.91 Years

FCT DPU Trend April 22-2016 FCT Portfolio April 22-2016FCT NPI Contribution April22-2016 FCT NPI Contribution by Malls April22-2016FCT Occupancy April 22-2016FCT Diversification April 22-2016 FCT Top Ten Tenants April 22-2016FCT WALE April 22-2016FCT WADB April 22-2016FCT Sponsor Other Malls April 22-2016



Frasers Centrepoint Trust (FCT) Stock Chart and Technical Analysis

Frasers Centrepoint Trust April 29-2016

FCT is currently consolidating within a Symmetrical Triangle. Upside potential is limited and unlikely there will be any capital gain. FCT is a pure dividend stock for passive income at the moment.

Yield and Price/NAV Simulation for Entry Planning

FCT  REIT Yield and NAV Simulation

I am combining Fundamental Analysis, Technical Analysis, Yield & Price/NAV simulation to determine a safe entry on my REIT investing to Maximize the Return, Protect Initial Capital and Minimize Losses. I will be sharing my REIT investing analysis techniques in my course. Check out the next Investing in Singapore REIT course here. This is a hands on course and focus on application.

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Three Ways How You Can Trade Stocks Using Binary Options

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Luis Aureliano

There are many different ways you can trade stocks to generate extra income from the comfort of your own home. In this post I would like to share with you three ways how you can trade stocks using binary options.

What are binary options? 

Binary options are an innovative financial derivative that allows you to bet on the price of an underlying asset, such as a stock or a stock index, to either go up or down within a pre-defined time period. Binary option markets are always quoted with a two-way price, such as 49.50/50.50. If you want to go ‘long’

and buy the security, you buy it at thStock1e offer price, which would be 50.50. Should the security close up within the pre-defined time horizon (say 5mins) your profit would be 49.50 times your investment per point (say USD 5). So, if we buy USD 5 per point at 50.50 and the security closes higher after 5 mins, we would generate a profit of USD 5 * (100-50.50) = USD 247.50. Adversely, if the security would end up lower after 5 mins, then you would make a loss of USD 5 * (0-50.50) = USD 252.50. The value of a binary option at expiry is always either 0 or 100. Therefore, your potential loss is always limited, which helps you with your risk management.

To trade binary options you need to sign up to an online broker, such as, that offers binary options trading for a broad range of asset classes with low transaction costs. If your current broker does not offer binary options trading, it is best to read reviews about different binary options brokers online, such as Finpari –, to find the one that is right for you and your specific trading requirements.

How can you successfully trade stocks using binary options?

For this post I have collated three binary options trading strategies you can apply to generate profit in the stock market.

stock2Firstly, you can trade company news using binary options. The key to successfully trade using binary options is to identify mini-trends and capitalize on them. Therefore, if there are important company announcements or earnings releases you can capitalize on the stock price movement just after the announcement has been made, as that is when the market tends to trend clearly in one direction for a short period of time. For example, if Goldman Sachs announces worse than expected results, its stock price will drop immediately after the announcement. In this instance, you could sell a binary option on GS stock and will very likely make money on the transaction.

Secondly, you can trade economic data announcements by capitalizing on mini trends, just as you would when trading company specific news. If you trade the S&P500 Index using binary options you can go long after better than expected US economic data has been released or go short immediately after worse than expected US data has been announced, as macro economic data is one of the main drivers of the stock market. Examples of US data to look out for would be GDP figures and unemployment rates. These tend to have the most affect on the price level of the S&P500 Index.

Thirdly, use can trade announcements by central bankers as part of your binary options trading strategy. Central banks have been playing an increasingly important role in recent years, as their interventions in the market through quantitative easing and ultra-dovish monetary policy measures have become a key driver of global stock markets. If a central banker of a major economy such as the USA, the UK or Europe hints at future rate cuts or hikes, this will cause a large movement in stocks prices. This is another way you can capitalize on trends using binary options.

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