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Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $4,200/month.

Monday, March 20, 2017

Analysis of Asian Pay Television Trust

Current Price on 7th Mar 2017 = $0.43
  • Yield = 15.12%  
  • Price-to-book Ratio = 0.502
  • Assets per unit = $1.905
  • Debt per unit = $1.048 (including current liabilities)
  • Gearing = 55.0%
Asian Pay Television Trust has been in the news lately especially when there is a change of manager or I should say, there is an acquisition of its manager by a Taiwanese local who should be more familiar with the industry. It created a buzz and price went up a bit but has since went down as well. Here are the statistics.

With a yield of 15.12%, it is the highest yielding trust that I have, even higher than Global Investment Limited. Its price-to-book ratio is 0.502 which means we are buying at half price although how true it is really depends. This is not property where it is relatively more stable and predictable. Gearing is at a high of 55.0% with high debts.

While I thought this investment might be risky, I think the yield is worth the risk with extremely high yield and 50% discount to NAV. Yes, the price has dropped very significantly from previous high which makes investors wary but I think the margin of safety has reached quite a level that I don't think it can go any further down. Maybe a bit more but won't be so much.

I am vested with 100,000 shares worth about $43,000. I am investing for long term and I am waiting for Netlink Trust to be listed since the business is very much the same. It will be a good reference point for APTT.

3 comments:

  1. Hi, May I know how you calculate the 50% discount to NAV? Price-to-book Ratio = 0.502 and current price is 0.435. Thanks.

    ReplyDelete
  2. Just vested at 0.435, FYI new taiwanese manager is Foxconn 's Terry Gou (Richest in Taiwan) and Lu Ming Fang

    ReplyDelete
  3. I took a look at their result. I would not like this counter. 2 reasons are debt and fcf.

    ReplyDelete