Mapletree Industrial Trust has been given the chance to acquire at additional $400Million worth of properties. Now we shall look at how MIT is going to finance this acquisition which includes issuance of new units. The price has moved up quite a lot to $1.18 which gives us the stats.
- Price = $1.18
- Yield = 6.54%
- Price to book ratio = 1.35
- Asset per unit = $1.578
- Debt per unit = $0.632
- Gearing = 40% (even though prospectus indicated 38.5%)
- Secured NAV = $0.946
At the current look, it seems that the acquisition has already been priced in. Moreover the statistics does not look appealing now and it is trading at a similar level as A-REIT in terms of yield and price-to-book value. Therefore, it has not reached my criteria for investment. Having said that, this is a very strong REIT with strong management. Further news might change my perspectives. When new statistics comes in, I will look at it very closely.
Looking at the MapletreeInd campaign, it was previously in an accumulation zone between 1.15-1.17. Today we witnessed a new high at 1.18. I calculated the accumulation phase and it projected price towards the 1.35-1.42 level in the short to mid term. This tells me that the accumulation phase might be over soon.ReplyDelete
Looking at the broader picture, the longer term accumulation projected price towards at a higher level. For now we shall watch it's progression.
Saw your blog... Nice analysis...ReplyDelete