In November when they bought the two properties and I also bought (and sold) the units for Viva Industrial Trust. I predicted that their yield will increase up to 9.5% (based on $0.80) and yes it did. My only miss is that I sold it before I get to enjoy the benefits (please see my last post.)
Current Price on 24th Apr 2015 = $0.84
- Yield = 8.90%
- Price-to-book Ratio = 1.085
- Assets per unit = $1.427
- Debt per unit = $0.653 (including current liabilities)
- Gearing = 45.8%
- Secured NAV = $0.185 (22%)
- Credit Rating = BB+
With the current yield, I believe that it is (still) the highest that you can find in the market where it holds properties at 8.90%. However, price-to-book ratio is strangely at 1.085 which means that you are paying at 8.5% premium which is actually a lot. Gearing is at 45.8% which is high and its credit rating is below investment grade.
I believe that Viva Industrial Trust, as one of the smallest REIT in the market, actually has the advantage of creating large impact to their portfolio with modest purchase of properties. This is a growing REIT and when it grew to a size like AIMSAMP, the yield will be compressed to about 7.5% which AIMSAMP is currently trading at. Thus, the potential is high.
I am looking at re-investing into Viva Industrial Trust this week with the current monies that I have.
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