- Yield = 6.19%
- Price-to-book Ratio = 1.319
- Assets per unit = $1.639
- Debt per unit = $0.619 (including current liabilities)
- Gearing = 37.8%
Yield is at 6.19% which miss my 8% yield criteria by a lot. Price-to-book ratio is at 1.319 which means we are buying at 32% premium for this portfolio of properties. I don't know whether anyone is in the right mind to pay so much more for a property. Gearing is at 37.8% which is still healthy.
First REIT was my anchor investment many years back and they have helped me and my portfolio grow. Having said that, I believe that it is no longer attractive. With the yield and price-to-book ratio both not hitting my criteria (and way beyond), I believe that the price is no longer resilient and I am not going to invest in it.
Hi, was wondering how you calculate the premium? i took 13.45/1.319 - 1 = 19.7%.ReplyDelete
could you enlighten me? -fan of your blog
Lippo ceo said will relist this one & LMIRT to Indonesia, what's your view & is it pro or con to existing retail shareholders?ReplyDelete
As the respective REITs have not officially receive the news, we might just have to wait for a while and see first.
FIRT is now at 1.17 SGD, wouldn't that make it a good investment?
Do you know why the price is falling?
It is because that there is a chance they will be transferred to Indonesia exchange where their risk-free rate is much higher.
This Reit is still in the Singapore Exchange. Does it still have a plan to be transferred? I checked their website but it was not mentioned. Do you think this is a good buy if I am just looking for a safe 5 to 6% return?ReplyDelete