- Yield = 6.95%
- Price-to-book Ratio = 0.87
- Assets per unit = $1.123
- Debt per unit = $0.485 (including current liabilities)
- Gearing = 43.2%
- Secured NAV = $0.638 (115% of trading price)
ESR REIT is formerly Cambridge Industrial Trust. Their change in name reflect that they have a strong backing now. Let's take a look at the statistics.
Yield is at a weak 6.95%. It is considered weak as I have expected higher yield from the same value of properties. Their price-to-book ratio is 0.87 which means that we are buying at a 13% discount. Only Sabana REIT is trading at a higher discount to book value which probably gives more value for money buys. EC World REIT is also trading at 0.87 price-to-book value but they are based in China. Gearing is at 43.2%.
What is attractive is that now their loans are all unsecured which means their secured NAV is $0.638 which is 115% of their trading price. It gives a lot of margin of safety to the investors and in the worst case scenario, we are probably still looking at getting back this amount. :-)
Another point to note is that they are buying a property which should be completed by this month. This will help to improve their yield to about 7.5% which in today's standards, is quite attractive.
I have recently purchased 55,000 shares of ESR REIT due to its margin of safety and its improved yield. May not be the best in the market but certainly fulfill my needs.
Yield is at a weak 6.95%. It is considered weak as I have expected higher yield from the same value of properties. Their price-to-book ratio is 0.87 which means that we are buying at a 13% discount. Only Sabana REIT is trading at a higher discount to book value which probably gives more value for money buys. EC World REIT is also trading at 0.87 price-to-book value but they are based in China. Gearing is at 43.2%.
What is attractive is that now their loans are all unsecured which means their secured NAV is $0.638 which is 115% of their trading price. It gives a lot of margin of safety to the investors and in the worst case scenario, we are probably still looking at getting back this amount. :-)
Another point to note is that they are buying a property which should be completed by this month. This will help to improve their yield to about 7.5% which in today's standards, is quite attractive.
I have recently purchased 55,000 shares of ESR REIT due to its margin of safety and its improved yield. May not be the best in the market but certainly fulfill my needs.
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ReplyDeletemerger with viva agreed.. just that market does not know yet. https://realassets.ipe.com/news/centuria-confirms-strategy-talks-with-shareholder-e-shang/10023606.article
ReplyDeletehttps://realassets.ipe.com/news/centuria-confirms-strategy-talks-with-shareholder-e-shang/10023606.article Singapore does not know that merger with viva agreed
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