- Yield = 6.06%
- Price-to-book Ratio = 1.154
- Assets per unit = $3.391
- Debt per unit = $1.267 (including current liabilities)
- Gearing = 37.4%
It has been a while since I look at these big REITs counter and this is once which I will check on this one big REIT for a simple reason. I would like to see what are the benchmarks for big stable REITs which other REITs can strive to achieve.
Yield is at a low of 6.06% which is hardly exciting. It is below my expectation of 8%. Moreover, its price-to-book ratio is 1.154 which does not fit my criteria of buying at discount to NAV. Gearing at a respectable 37.4%. Using my criteria, it hit almost none of it.
However, I would like to see it as a benchmark which other REITs can achieve. Imagine AIMSAMP REIT, Viva Industrial Trust, Cambridge Industrial REIT and others can grow their portfolio into something like Ascendas. For AIMSAMP REIT to be like Ascendas, their price have to go up from $1.50 to $1.90. How about others then? Hmmm...
Is it possible for the price to go up so high that their yield are compressed to 6.06%? Well, it is possible if their management and their scale can match Ascendas. It may take a few years for them to work on it, enduring some financial storms along the way. But we are long-term investors here. If we see the potential, why not just enter the smaller REITs and wait for them to grow? They tend to be priced cheaper by the market anyway.
There are other Industrial REITs to look at as well before this kind of analysis is completed. But Ascendas is a good proxy of what the rest can do in the near future.
Yield is at a low of 6.06% which is hardly exciting. It is below my expectation of 8%. Moreover, its price-to-book ratio is 1.154 which does not fit my criteria of buying at discount to NAV. Gearing at a respectable 37.4%. Using my criteria, it hit almost none of it.
However, I would like to see it as a benchmark which other REITs can achieve. Imagine AIMSAMP REIT, Viva Industrial Trust, Cambridge Industrial REIT and others can grow their portfolio into something like Ascendas. For AIMSAMP REIT to be like Ascendas, their price have to go up from $1.50 to $1.90. How about others then? Hmmm...
Is it possible for the price to go up so high that their yield are compressed to 6.06%? Well, it is possible if their management and their scale can match Ascendas. It may take a few years for them to work on it, enduring some financial storms along the way. But we are long-term investors here. If we see the potential, why not just enter the smaller REITs and wait for them to grow? They tend to be priced cheaper by the market anyway.
There are other Industrial REITs to look at as well before this kind of analysis is completed. But Ascendas is a good proxy of what the rest can do in the near future.
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