- Current Yield = 7.20%
- Price-to-book Ratio = 0.996
- Assets per unit = $1.352
- Debt per unit = $0.449 (including current liabilities)
- Gearing = 33.2%
Its yield is at 7.20% which is much higher than 5.58% in SPH REIT. Moreover, it is priced quite farely at 0.996 price-to-book ratio. Its gearing is also at a healthy 33.2%. Their comparable hospitality REITs have yield that are below 7%, so there is a chance for upside.
If I were to choose only one to subscribe, I will choose OUE Hospitality Trust because of its comparable price-to-book ratio and its better yield. I am trying very hard not to deviate from my criteria and OUE Hospitality Trust miss by just a bit (on the yield).
Nevertheless, it is still important to look at the final pricing. Again, if it is not priced at the top end, it means that there is not enough demand at the top pricing. Let's see what is the price they will give to us.
Post a Comment