Data is assumed that rights issue is completed.
- Current Yield = 8.83% (Assumed to be the same because there are no details)
- Price-to-book Ratio = 0.671
- Assets per unit = $0.759
- Debt per unit = $0.156
- Gearing = 20.9% (include current liabilities which are not loans)
- Secured NAV = $0.413
The most important thing to note in this announcement is that these two properties will be unencumbered. This would adjust its secured NAV to $0.413 after rights issue which is about 98% of its current market price. This means that even if it default on its loans, we are very sure that we have $0.413 per share worth of properties.
It has been a while since such an opportunity comes along. Compared to CCT which I am also considering, I will invest in this REIT. Hopefully I am allocated a few more lots during the rights exercise to bring my cost down.