Current Price on 7th Sept 2011 = $1.085
- Current Yield = 8.22%
- Price-to-book Ratio = 0.777
- Assets per unit = $2.51
- Debt per unit = $1.114
- Gearing = 44.4%
Ascott REIT is one of the two hospitality REIT (another is CDL Hospitality REIT) listed on SGX. Since the last review, the price has dropped by quite a lot. From the statistics, we can see that the yield is at 8.22% which has met my criteria. Moreover, it is trading at a discount to NAV which makes it attractive. The only problem is its gearing which is quite high but they have a strong sponsor so that should not be a problem.
Hospitality REIT seems to be adopting a different formula which I will be looking into it. Basically it is the length of stay which is very short so its rent is more subjective to market fluctuations. However, it is the same if you buy a condo and rent it out. Moreover, we have a strong management here who will take care of everything for us.
Ascott REIT is also one which has properties that spans all over the world. This is a good counter if you want a diversified portfolio. I am looking to this and will consider if I have excessive cash on hand.
Ascott REIT is also one which has properties that spans all over the world. This is a good counter if you want a diversified portfolio. I am looking to this and will consider if I have excessive cash on hand.
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