Current Price on 6th August 2011 = $0.215
- Current Yield = 9.86%
- Price-to-book Ratio = 0.803
- Assets per unit = $0.465
- Debt per unit = $0.191 (including current liabilities)
- Gearing = 41.2%
- Credit Rating = Ba2
This week has been very interesting with the stock market crashing down by about 4%. REITs falls by 2.6% on average. AIMSAMP REIT has earlier reported its results with a redevelopment announcement. This is a good news because it increases DPU and NAV at the same time.
Current yield stays at 9.86% and its price-to-NAV ratio stands at 0.803 which fits all my criteria. However one thing which is bothering me is its credit rating. It is at Ba2 which is quite risky (that is why it is trading at such a yield and discount to NAV) Moreover, its gearing has increased to 41.2% which is quite high. With the current economic climate, their interest rates on loans should be quite high as well.
I have an investment of about $7000 on this REIT. I am looking at increasing it to above $10,000 which then I can consider it to be one of my anchor investments. (even though there is a risk.)
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