- Current Yield = 7.47%
- Price-to-book Ratio = 1.017
- Assets per unit = $2.179
- Debt per unit = $0.911 (including current liabilities)
- Gearing = 41.8%
Capital Retail China Trust reported its results which caught my eye. They deliver high yield of 7.47% (not within my minimum standard of 8%) and its price-to-book ratio is 1.017 which is not my criteria.
What I began to realize for CRCT is its exposure to RMB. If I invest in this REIT, I am also investing in its currency of RMB which I was initially exploring recently. Since RMB is widely known to be undervalued, it is likely to appreciate in the middle term, raising its yield and NAV.
Moreover, with a strong sponsor like Capitaland who manages this REIT, it provides some sense of security for retail investors like us.
I am looking closely into this REIT. If there is price weakness these days, I might just start to invest in this REIT for growth.