Current Price on 28th Dec 2011 = $0.955
- Current Yield = 8.77%
- Price-to-book Ratio = 1.067
- Assets per unit = $1.303
- Debt per unit = $0.408
- Gearing = 31.3%
I have been reading research reports and Cache has been well-recommended. Therefore I have decided to relook into this REIT again and here are the statistics.
Their strong point is their DPU growth (rather than just DPU) which shows their strength in improving yield at a fast pace. Thus, their trading price has always been higher than its NAV (which, in my opinion, I am not favourable). Their gearing is still comfortable i.e. there is still room for growth.
Their yield is high enough now (above 8% threshold) thus I will be looking closely. But its price-to-book ratio is still above 1 (a premium REIT). There are other REITs which are trading at a cheaper price and higher yield. Unless I am going for growth (than just dividends), this REIT will remain in my radar and not in my portfolio.
Their strong point is their DPU growth (rather than just DPU) which shows their strength in improving yield at a fast pace. Thus, their trading price has always been higher than its NAV (which, in my opinion, I am not favourable). Their gearing is still comfortable i.e. there is still room for growth.
Their yield is high enough now (above 8% threshold) thus I will be looking closely. But its price-to-book ratio is still above 1 (a premium REIT). There are other REITs which are trading at a cheaper price and higher yield. Unless I am going for growth (than just dividends), this REIT will remain in my radar and not in my portfolio.
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