Proposed Maximum price = $1
- Current Yield = 7.26%
- Price-to-book Ratio = 1.097
- Assets per unit = $1.685
- Debt per unit = $0.773 (including current liabilities)
- Gearing = 45.9%
There is going to be a new listing of an infrastructure assets in the name of Asian Pay Television Trust which is a hive-off from MIIF. The yield is at an attractive rate of 7.26% which is quite high if you are comparing with REITs. However, its price-to-book ratio is at 1.097 which means we are paying about 10% more for this asset.
I believe that Infrastructure Assets have a faster depreciation than REITs since there is wear and tear plus advancement of technology. Thus, I am not too sure whether it can sustain the assets per unit of $1.685. Its gearing is also quite high at 45.9% which is quite dangerous.
I think I will need more information and knowledge on this kind of investments before I decide. Nevertheless, 7.26% yield to me is not good enough considering that there are REITs with similar yield.
I believe that Infrastructure Assets have a faster depreciation than REITs since there is wear and tear plus advancement of technology. Thus, I am not too sure whether it can sustain the assets per unit of $1.685. Its gearing is also quite high at 45.9% which is quite dangerous.
I think I will need more information and knowledge on this kind of investments before I decide. Nevertheless, 7.26% yield to me is not good enough considering that there are REITs with similar yield.
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