- Yield = 5.75%
- Price-to-book Ratio = 0.916
- Assets per unit = $2.698
- Debt per unit = $0.951 (including current liabilities)
- Gearing = 35.3%
- Credit Rating = A3
Capital Commercial Trust has reported their results. To be frank, I have not been interested in them for a long time due to their low yield and pretty high volatility in trading price. Let's take a look at the statistics first.
With a yield of 5.75%, the yield is quite low. But considering that you are buying into a reputable management and strong sponsor, it adds to the credibility. Its price-to-book ratio is much better at 0.916 which means we are buying at an 8% discount. Its gearing is quite healthy and it has a strong credit rating of A3 which is better than most unrated bonds in the market. Thus, their yield is probably quite comparable or even lower.
While I understand the strength of the management which resulted in high trading price, I do not believe that it will be value adding to my portfolio. I am looking at high yield + discount to NAV which probably add some risks into my portfolio but also gives me a higher passive income. Thus, I still won't consider this into my portfolio.
With a yield of 5.75%, the yield is quite low. But considering that you are buying into a reputable management and strong sponsor, it adds to the credibility. Its price-to-book ratio is much better at 0.916 which means we are buying at an 8% discount. Its gearing is quite healthy and it has a strong credit rating of A3 which is better than most unrated bonds in the market. Thus, their yield is probably quite comparable or even lower.
While I understand the strength of the management which resulted in high trading price, I do not believe that it will be value adding to my portfolio. I am looking at high yield + discount to NAV which probably add some risks into my portfolio but also gives me a higher passive income. Thus, I still won't consider this into my portfolio.
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