Current Price on 6th August 2012 = $0.595
- Current Yield = 7.93%
- Price-to-book Ratio = 0.946
- Assets per unit = $0.977
- Debt per unit = $0.360
- Gearing = 36.8%
- Secured NAV = $0.155 (26%)
Cambridge Industrial Trust has reported its earnings earlier which has translated to 7.93% yield which is quite high in the market but below my current threshold level. Price-to-book ratio has also risen to a high of 0.946, which is very close to its NAV value of 61.2 cents. On paper, it is getting more and more unattractive.
Looking forward, there are some acquisition which have yet to contribute to its yield. I am predicting that it will move up to 8.20% in the coming quarter. What is more important is its sale of Lam Soon Building which will yield a cool $144 million in profit. It will propel its NAV to $0.738 and thus its price-to-book ratio will be 0.806. Moreover, SLA is compensating CIT at above valuation for one of its properties.
I am vested with 51,000 shares and will be participating in its DRP to increase my holdings. To me, it looks like compound interest account.
Looking forward, there are some acquisition which have yet to contribute to its yield. I am predicting that it will move up to 8.20% in the coming quarter. What is more important is its sale of Lam Soon Building which will yield a cool $144 million in profit. It will propel its NAV to $0.738 and thus its price-to-book ratio will be 0.806. Moreover, SLA is compensating CIT at above valuation for one of its properties.
I am vested with 51,000 shares and will be participating in its DRP to increase my holdings. To me, it looks like compound interest account.
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