Saturday, July 25, 2009

Frasers Commercial Trust (FCOT)

Source: remisiers by DMG
Analyst: Jonathan Ng (62323893, jonathan.ng@dmgaps.com.sg)

- Dividend inline with consensus
- Strong balance sheet with gearing 32.7%, interest cover 4.5x
- One of lowest beta among S-REITS, 0.75x vs typical 1.1x

Valuation Method Use:
Price target raised to S$1.17 (S$0.83 previously) to reflect a lower cost-of-equity assumption of 7.5% (9.5% previously) and terminal growth rate of 1% (nil previously).

Action:
Reading just to see how analyst valuate stock

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