Frasers Hospitality Trust (SGX: ACV) is the first global hotel and serviced residence trust to be listed on the Singapore stock exchange in 2014. At the time of writing, Frasers Hospitality Trust’s share price (technically known as unit price for REITs and trusts) stands at S$0.49. At that unit price, the trust looks undervalued since its price-to-book (PB) ratio is below 1x. However, is Frasers Hospitality Trust cheap for a reason or is there an attractive investment opportunity for long-term investors? Let’s explore using my 10-step guide to pick the best Singapore REITs. As a summary, here are the 10 steps I use to pick the best Singapore REITs:

1. Growth in Gross Revenue and Net Property Income
2. Growth in Distribution Per Unit
3. Property Yield of Between 5% and 9%
4. Gearing Ratio of Below 40%
5. Interest Coverage Ratio of Above 5x
6. Healthy Portfolio Occupancy Rate
7. Positive Rental Reversions
8. Presence of Growth Prospects

...