REITS

Questions › Category: Financials Quadrant › REITS

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Victor Lee asked 2 years ago

Hi!
I’m going through Mapletree Industrial Reit Annual Report for 18/19. I’m thinking of using the Financial Analysis Excel Template to determine the valuation for REITS but not sure if the template is suitable/applicable? Also, should Share of Joint Venture and Net Fair Value gain in investment properties be counted as extraordinary items?
Thank you!
Regards,
Victor

2 Answers

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Jieren Zheng answered 2 years ago

I think it is technically fine though it might be a little overkill (REITs are a much more simple business).

It is good to note that the metrics we use is slightly different, such as we use Debt-to-Asset instead of Debt-to-Equity.

Valuation wise, perhaps Price to Cashflow and Price to Book would be a good starter.

Victor Lee replied 2 years ago

Thanks Jieren!

Jieren Zheng replied 2 years ago

Welcome

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Victor Chng answered 2 years ago

Hi Victor,

The investment quadrant system is not suitable to analyse REITS, Banks and Insurance as it required a different sets of metric

Victor Lee replied 2 years ago

Thanks Victor!

Zhi Ming Cheah replied 2 years ago

Where to learn his to analyse banks and insurance? Reits I assume I can learn from dividend machine

Zhi Ming Cheah replied 2 years ago

How to analyse *

Victor Chng replied 2 years ago

Hi Zhi Ming,

We do not have experience in analysing banks and insurance but one of our guest writer had written an article about insurance here.

https://fifthperson.com/the-one-ratio-to-use-when-valuing-an-insurance-stock/