REIT and banking stock

Q & AREIT and banking stock
ST NEOH asked 12 months ago

Hi KC and Peter,
i have gone through most of the material here and I was wondering the method you guys teach here also applicable to REIT or banking stocks? If not, do you have plan in covering it in bursa method moving forward ?
Thanks
 

1 Answers
NICHOLAS OH answered 12 months ago

In my view, the core principles in evaluating both REITs and banks are still applicable (eg: understanding the balance sheet, income statement, how to calculate ROE and estimating intrinsic value). 
However, there are a few characteristics that are unique to REITs and banks that may be helpful to understand. For example, one looking at REITs will need to understand a host of other qualitative & quantitative factors such as its distribution yield, leverage limits, tax rates, sponsor strength, tenant profile, debt maturities and many more. 
For financial institutions like banks, a few additional things that are useful to look at include its net interest margins, capital adequacy ratio and cost of deposits.