- Yield = 8.58%
Hutchison Port Holding Trust recently has a meltdown in their price which pushes up the yield and makes it more attractive for investment. Let's take a look at the statistics first.
With a yield of 8.58%, it is definitely attractive now considering that it is not easy to get such a yield in the REIT market. Moreover, it was trading at around 6% last year which means people are willing to pay for such a premium given a good market. Its price-to-book ratio is 0.465 which means we are buying at less than half the value. Gearing is at 45.5% which is quite high though.
It is a business trust focusing on port business so it is different from real estate which carries more value even when there is no income. However, HPH Trust holds one of the busiest port and probably important port to the Hong Kong economy as well. It is also operating ports in China. Thus, it is highly reliant to the Chinese economy.
With the high yield and low price-to-book ratio it is worth considering now to invest and I am looking very closely to it. Especially when I am also intending to sell one of my holdings.