Shares & Derivatives
How to Value Reits – Example: Ascott Singapore
By The Simplified Resource For Investing and Personal Finance  •  October 21, 2008
By: SGDividends

SGDividends is on a mission...to make investing look so "chicken-feet" that people, large or small, pink or green will be able to invest wisely. The best people that have their best interests at heart is of cos, themselves. See Mr Tan Kin Lian's Blog for examples.

The How-to article we are writing today is drawn from many sources, such as stockfundatalk (check out this blog..its fantastic!), investopedia,wikipedia, our teammates, Analyst reports (yes..we know), textbooks..e.t.c. SGDividends just simplified them and modified them using a Singapore example. So read on ...join us in a quest!

Number 1: Adjusted Funds from Operations (AFFO) Simply: Net income + Depreciation - Capital Expenditure ( Capex and other expenditure that is needed to sustain the business) = AFFO

Huh..si-mi-lan? ( Crude Hokkien for what you mean). This is because real estate asset is different from fixed-plant or equipment assets as property rarely loses value and often appreciates. Therefore, depreciation is added back. We substract Capex as this is a cost that is needed to sustain the business.

Income Statement Read more...

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By The Simplified Resource For Investing and Personal Finance
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