Current Price on 19th October 2012 = $1.14
- Current Yield = 8.21%
- Price-to-book Ratio = 1.066
- Assets per unit = $1.795
- Debt per unit = $0.726 (including current liabilities)
- Gearing = 40.4%
Sabana REIT has reported its results which is very strong. Its yield increases by 3% which is commendable. Currently, its yield is 8.21% and it is the only REIT which is still trading at above 8% (my first criteria). However, its price-to-book ratio is 1.066 which is above 1. This makes it a little bit tricky because it is a premium REIT rather than a discounted REIT which I favour.
I have a sensing that we should be looking at the yield more than the NAV because it actually shows that the manager is able to get more yield per value of property that they have. Having said that, it is better if both factors are considered.
I have only 1,000 shares but I won't be looking at increasing yet until I am convinced that yield should be the dominating factor compared to price-to-book ratio.
I have a sensing that we should be looking at the yield more than the NAV because it actually shows that the manager is able to get more yield per value of property that they have. Having said that, it is better if both factors are considered.
I have only 1,000 shares but I won't be looking at increasing yet until I am convinced that yield should be the dominating factor compared to price-to-book ratio.
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