Saizen REIT offers a yield of 7.78% this year and a projected rate of 8.17% yield next year. Its price-to-book ratio is at 0.536 which is the lowest in the market. Moreover, it is recovering from its previous default and is now on a recovery/releveraging phase. With its credit rating moving up, I expect borrowing cost to reduce over these few years by amortizing their expensive loans and substitute with cheap ones, yield-accretive acquisitions etc. Moreover, they are executing their plans now which means we are benefiting from it sooner.
As 2012 draws to a close soon, I am using 2013 yield projection to analyse my investments. It has impacted my analysis of FCOT and K-REIT, both which has major reversion in their yields. So here are the statistics.
- Current Market Value = $154,369 (Capital Appreciation of $38,000)
- Distribution for 2013 = $11,215 ($930 per month) (Thanks! Promptpost!)
- Market-to-NAV = 0.867
- % Market Yield = 7.265%
- % Secured NAV = 44.36%
It has been a long ride since I first researched on REITs, investing in it with a few thousand dollars that I have until now with a strong market valuation and significant distribution which supplements my family income. I hope you can do it too even if you have little money currently.