- Yield = 9.75%
- Price to Book ratio = 0.632
- Asset per unit = $0.468
- Debt per unit = $0.215
- (Assets and Debt is calculated with the assumption that all rights are converted into shares.)
- Gearing = 30.8%
- Secured NAV = $0.128
Finally there is a positive news about Saizen REIT and it is a great news because it is giving a 9.75% yield which fits my criteria. It is great that Saizen REIT managed to turn around after going through such a difficult period. Currently, we have secured NAV which is close to its current price, a discount to actual NAV, and high yield. The next step probably is to improve its debt rating by resolving its YK Shintoku issue. But they have indicated that they would like to use their unencumbered properties for more loans which to me is a drawback. I just hope that things turn out better. Thinking of increasing my holdings on this.
May i know wad u mean by secured NAV ? and y u choose it as 1 of the criteria for selecting a reit?
hi, is it possible if you can show us how you arrive at a yield of 9%? I only see from annual report yield of 6+%ReplyDelete
For secured NAV, I meant the properties which are not used as collateral for loan. This would mean that in a worse case situation where all collateral are seized by the banks, these properties will not be seized and are rightfully yours. Just like buying a property without taking a bank loan.
You will need to look at the annual report and try to calculate the value of the properties divided by the total number of units. (That is how I calculated)
0.26 cents is rent for just two months so you multiply by 6 to annualize it and divided by the current price.
why do you state a price to NAV ratio of 0.632 ?ReplyDelete
According to their latest report http://www.saizenreit.com.sg/images/stories/20100826_4q_fy2010_results_announcement.pdf at page 14 NAV is 0.40 SGD therefore at current price of 0.16 price to NAV ratio is 0.4
I have assumed that all warrants is converted into ordinary shares. Therefore there is a dilution factor.ReplyDelete