- Yield = 4.41%
- Price-to-book Ratio = 0.962
- Assets per unit = $2.223
- Debt per unit = $0.914 (including current liabilities, perpetual securities and non-controlling interest)
- Gearing = 41.1%
- Secured NAV = $1.309 (103% of trading price)
With a yield of 4.41%, their yield is actually lower than some of the bonds that is offered in the market. It is probably one of the lowest yielding REIT currently. However, its price-to-book ratio is 0.962 which means we are still buying at a small discount to NAV. Moreover, all their debts are unsecured which means their Secured NAV is at 103% of their trading price. Thus, it provided quite a strong margin of safety.
I like its secured NAV because it shows how secure my investments will be and it is actually higher than the current trading price. Just that the yield is way too low to be attractive. If you want a more secure, stable big REIT, like a blue chip, this is a good one. But upside will probably be minimal unless they are able to improve their DPU in a substantial way. For me, I prefer to give this a miss as it is way below my criteria for yield.
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