Far East Hospitality Trust

[propertyinvestor]

Why people like to buy overvalued stocks?

[Musicwhiz]

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

[Some-one]

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

I am about to ask the same question as well. The P/B ratio is about 1 so I don't think it is overvalue at 0.93. In fact, if it does get lower than the IPO amount, I may consider adding some.

When MapleTree Comm IPO at 0.88 last year, many people do not like it as its gearing raio is high. The Book Value is about 0.91. Very soon, MapleTree Comm falls to 0.795. I did not manage to catch MapleTree Comm at that price but I managed to add 4 more lot at 0.81, considering the book value of MapleTree Comm is about 0.95 at that time. Now MapleTree Comm is 1.07.

[yeokiwi]

It's not too bad but it is hardly enticing. However, at the current yield, it is kind of easy to inject hotel properties(Hong kong hotels?) into it.
So, I suppose further increase in yield is possible at current price.

[propertyinvestor]

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

The OPH which was divested to the REIT is not on a freehold basis but on a 50year lease which will revert back to FE Orchard once the lease expires. Im not sure if the retail investors are aware of this fact.

---

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

I am about to ask the same question as well. The P/B ratio is about 1 so I don't think it is overvalue at 0.93. In fact, if it does get lower than the IPO amount, I may consider adding some.

When MapleTree Comm IPO at 0.88 last year, many people do not like it as its gearing raio is high. The Book Value is about 0.91. Very soon, MapleTree Comm falls to 0.795. I did not manage to catch MapleTree Comm at that price but I managed to add 4 more lot at 0.81, considering the book value of MapleTree Comm is about 0.95 at that time. Now MapleTree Comm is 1.07.

no im not talking about the 93c price but the 98c opening. Sorry for not stating earlier.

[KopiKat]

It's not too bad but it is hardly enticing. However, at the current yield, it is kind of easy to inject hotel properties(Hong kong hotels?) into it.
So, I suppose further increase in yield is possible at current price.

In the short term, perhaps not. Their 'Investment Policy' from IPO Prospectus (Pg 154),

Far East H-REIT is established with the principal investment strategy of investing on a longterm basis, directly or indirectly, in a diversified portfolio of income-producing real estate in Singapore, used primarily for hospitality and/or hospitality-related purposes, whether wholly or partially, as well as real estate-related assets in connection to the foregoing.

[lonewolf]

The best thing about having a good quality sponsor for a REIT is that it has ROFR for many of the sponsor assets. Of cos I know skeptics will always contend that the sponsor is dumping the assets to the REIT at an inflated price, but that another story.

In the case of Far East H-REIT, 7 properties have been identified as follows:

[Image: FarEastH-ROFR1.jpg]
[Image: FarEastH-ROFR2.jpg]

[Source: Prospectus pg 157-158]

"Assuming Far East H-Trust proceeds with the acquisition of the seven Sponsor ROFR Properties, the total number of hotel rooms and serviced residence units of Far East H-Trust will increase by 29.7% and 162.8% respectively, resulting in a total increase in portfolio size of approximately 49.1%. "

[KopiKat]

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

The OPH which was divested to the REIT is not on a freehold basis but on a 50year lease which will revert back to FE Orchard once the lease expires. Im not sure if the retail investors are aware of this fact.

---

Why people like to buy overvalued stocks?

Could you provide some explanations on why you feel it is overvalued? Other than the fact that it is an IPO.

I am about to ask the same question as well. The P/B ratio is about 1 so I don't think it is overvalue at 0.93. In fact, if it does get lower than the IPO amount, I may consider adding some.

When MapleTree Comm IPO at 0.88 last year, many people do not like it as its gearing raio is high. The Book Value is about 0.91. Very soon, MapleTree Comm falls to 0.795. I did not manage to catch MapleTree Comm at that price but I managed to add 4 more lot at 0.81, considering the book value of MapleTree Comm is about 0.95 at that time. Now MapleTree Comm is 1.07.

no im not talking about the 93c price but the 98c opening. Sorry for not stating earlier.

No choice... Must give face to the Forbes Richest in Singapore...

[Nick]

Far East Hospitality to tap ASEAN tourism growth, eyes assets

http://kfc1973-stock.blogspot.sg/2012/09...asean.html [Article]

(Not Vested)

[KopiKat]

Far East Hospitality to tap ASEAN tourism growth, eyes assets

http://kfc1973-stock.blogspot.sg/2012/09...asean.html [Article]

(Not Vested)

Was wondering what's wrong with this paragraph as i know for a fact that FE-HTrust was performing better than A-HTrust,

Units of Far East Hospitality have gained 3.2% since its listing on Aug 27, compared with 4% for Ascendas Hospitality Trust and 0.3% for CDL Hospitality Trusts.

Went to check the article at theedge and the original one at Reuters but same. After checking Yahoo charts, finally realised that they were using FE-HTrust 1st day closing of $0.95 as a base, rather than IPO price of $0.93.