Current Price on 22th July 2011 = $0.835
- Current Yield = 7.57%
- Price-to-book Ratio = 1.070
- Assets per unit = $1.012
- Debt per unit = $0.231 (including current liabilities)
- Gearing = 22.9%
First REIT has also delivered a set of results which gives me returns of $280 for this quarter. Its price has also risen by a lot this year, switching from a discount REIT to a premium REIT.
Looking at the stats, all indicators tells me to sell. Yield is below 8%, and price-to-book ratio is above 1. But I have received so much advice from friends and relatives on not to sell that I still hold on to this REIT currently. And they were right.
First REIT is currently discussing on whether to acquire an additional two hospitals in Indonesia. Looking about at the price which it acquire during the last exercise, I am expecting them to acquire at a discount (about 15%) which will further enhance NAV value.
Now I am beginning to realize why some REITs have higher yields and others are trading at a premium. Looks like my strategy will need to change to place focus on the potential of the REIT manager as well. Still working out the details.
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