- Current Yield = 7.54%
- Price-to-book Ratio = 1.083
- Assets per unit = $1.565
- Debt per unit = $0.600 (including current liabilities)
- Gearing = 38.4%
For a long time I have not checked on First REIT so with some exciting news, I have spent sometime looking at it.
First REIT has reported a strong results with yield climbing back to 7.54%. It is so much better compared to earlier when its yield is hovering between 6 - 7%. Its price-to-book ratio, however, is still at a unattractive rate of 1.083. Considering that they were a discounted REIT and now there is a high level of confidence, they have done well. They do have some unencumbered properties but I have not spent time calculating it.
Looking at the pricing now, I don't think I will invest in this REIT because there are other REITs like OUE Hospitality Trust, SoilBuild Trust, AIMSAMP REIT which are offering the same yield. They may have their different risk profile but I think level of risk is about the same. I will be looking at the other results first.
Starting new Investor friendly series of REITs mutual Fund http://www.realestatecritics.com/2014/03/vanguard-reit-index-fund-vgsix-one-of.htmlReplyDelete