Current Price on 9th Nov 2010 = $0.98 (Pro forma at $0.713)
- Current Yield = 8.66%
- Price-to-book Ratio = 0.936
- Assets per unit = $0.969
- Debt per unit = $0.207
- Gearing = 21.3%
First REIT has launched its rights issue along with its acquisition plans which I felt was a great one. They are acquiring properties at a 19.7% and 13.8% discount for the two properties. This has helped to keep the price to book ratio below 1.00 which fits my criteria. Moreover, if you calculate the % yield on the properties (base rent/purchasing price), it is higher than 10% which helps to increase its yield from 7.92% to 8.66%. This again suits my criteria.
I will be subscribing to the rights which I am entitled to and hopefully get some extra units since the rights issue is so cheap. I am looking at this closely. If possible, I will increase my shareholdings first.