Analysis of AIMSAMP REIT

Current Price on 7th Jun 2013 = $1.67

• Current Yield = 7.52%  
• Price-to-book Ratio = 1.087
• Assets per unit = $2.091
• Debt per unit = $0.554 (including current liabilities)
• Gearing = 26.5%
• Secured NAV = $0.659 (39.5%)

AIMSAMP REIT recently fell to one of its lowest level at $1.67 which helps to increase its yield to 7.52%. Moreover, it has recently announce its redevelopment plans which is yield accretive and NAV accretive as well. According to estimates, it will increase its yield to 7.94% which is very high and close to my criteria.

Its price-to-book ratio is unfortunately still at a high of 1.087. But with its recent private placement and debt repayment, its gearing is at a healthy 26.5% which is arguably the lowest among the industrial REITs (comparing with Cambridge Industrial Trust, Cache Logistics Trust and Sabana REIT). Secured NAV is at 39.5%, not very high but encouraging.

Most indicators seems very healthy for AIMSAMP REIT. I do have some cash for investment and it seems that I am going for this to enhance my portfolio yield. Moreover, I believe that there are more redevelopment coming in which helps to enhance its yield and NAV, a strategy which other REITs are less likely to do.