Price = $1.17
Yield = 6.58%
Price to book ratio = 0.831
Asset per unit = $2.582
Debt per unit = $1.172
Gearing = 45.5%
Following the acquistion, I have tried to update the details to see whether the situation has improved for Ascott REIT. What I felt is that the only positive news is the sale of Ascott Beijing which increases its NAV. The increase in yield is quite minimal compared to the size of the acquistion. They placed themselves into a situation which they call "6th largest" REIT.
I don't think it is a good news to enlarge itself because any other acquistion will be seen as minimal. However, they do have a few deals where they manage to sell their assets as a value higher than its valuation. Hope that this trend continues so that the value of the units can be enhanced.
I am not banking on appreciation of valuation as it is not my investment philosophy to rely on increase in valuation. Based on its 6.58% yield, I am giving it a miss until the price drops.
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