Price on 28th Dec 2011 = $0.865
- Current Yield = 7.82%
- Price-to-book Ratio = 1.012
- Assets per unit = $1.604
- Debt per unit = $0.75
- Gearing = 46.8%
- Interest Cover Ratio = 6.3 times
- Secured NAV = $0.854
Mapletree Logistics Trust has been around for quite a long time but this is the first time I am covering this REIT. Looking at the statistics, its yield is 7.82% which is below my threshold of 8%. Its price-to-book ratio is 1.012 which is above 1. Its gearing is 46.8% which is very high and therefore bears quite a bit of risk.
However, their secured NAV is $0.854 which is very close to their trading price. Moreover, their debts are all unsecured. Because of their secured NAV, it caught my attention. I think there are REITs with better ratios and higher secured NAV so I am not investing in this REIT.
One new factor which I will take into consideration is the Interest Cover Ratio which I felt was important. It is the EBITA over interest expenses. It illustrates how much money are used to pay debt interest. The higher the ratio, the better it is.
However, their secured NAV is $0.854 which is very close to their trading price. Moreover, their debts are all unsecured. Because of their secured NAV, it caught my attention. I think there are REITs with better ratios and higher secured NAV so I am not investing in this REIT.
One new factor which I will take into consideration is the Interest Cover Ratio which I felt was important. It is the EBITA over interest expenses. It illustrates how much money are used to pay debt interest. The higher the ratio, the better it is.
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