- Current Yield = 5.58%
- Price-to-book Ratio = 1.009
- Assets per unit = $1.246
- Debt per unit = $0.354 (including current liabilities)
- Gearing = 28.4%
- Secured NAV = $0.228 (25%)
Yield is at 5.58% which is quite comparable to its peers like Mapletree Commercial Trust, CapitaMall and Starhill Global REIT. It is a premium REIT which price-to-book ratio at 1.009. Gearing is healthy at 28.4% with a secured NAV of $0.228 (25%). Their loans are secured by Paragon so Clementi Mall is unencumbered.
To me, its yield is very low, way below my target of 8%. Plus I am not really keen to buy a premium REIT meaning I am not willing to pay more for an asset.
Nevertheless, I will wait for the final pricing and see whether it is priced at the top end. If it is priced at the top end, I will subscribe. Anything less than that, I will let this go.
Why only buy if its priced at top end? Wouldn't that means more expensive and less value?ReplyDelete
It is a demand and supply curve. If there is no demand, they will be forced to lower the price so that people will buy. But it also mean that it is "fairly priced" and it won't appreciate.Delete
That was what happen to HPH Trust and Sabana REIT when they launch their IPO.
Thanks for sharing. I'm trying to learn investing. Your blog is useful!Delete
After reading about SPH REIT IPO, you may want to read OUE Hospitality Trust IPO as well. The link is here.
If it is priced at the top end, which it is now, you will buy in.. But does this mean it is better to sell off immediately (when there is 'high' demand) since it does not meet 8% yield?ReplyDelete