- Yield = 7.61%
- Price-to-book Ratio = 0.628
- Assets per unit = $1.429
- Debt per unit = $0.458 (including current liabilities)
- Gearing = 32.1%
- Secured NAV = $0.971 (159.21% of trading price)
Since the meltdown, it will be nice and interesting to look at REITs which are trading at deep discount to NAV. This is like looking for investment products on big sales. Far East Hospitality Trust is probably on the biggest sale.
Price-to-book ratio is at 0.628. This means that it is now trading at at least 37% discount which is by far the cheapest REIT on sale. Moreover, its secured NAV is $0.971 which is 159.21% which means that even in a worse scenario and they need to sell assets, you still probably get your capital back at least. Well, likely with a profit as well. The only drawback is the yield which is 7.61%. Not bad actually considering that its is 100% Singapore-based so there is no foreign exchange risks.
Far East Hospitality Trust, to me is a good proxy on the tourism sector in Singapore. So if Singapore economy is doing well and many people are coming, they will do well i.e. yield will improve. Moreover, where can you get such deep discounts for properties? For me, I am looking at diversifying as my portfolio is too heavy on industrial properties in Singapore. This will be the one if I decide to invest in hotels.
Price-to-book ratio is at 0.628. This means that it is now trading at at least 37% discount which is by far the cheapest REIT on sale. Moreover, its secured NAV is $0.971 which is 159.21% which means that even in a worse scenario and they need to sell assets, you still probably get your capital back at least. Well, likely with a profit as well. The only drawback is the yield which is 7.61%. Not bad actually considering that its is 100% Singapore-based so there is no foreign exchange risks.
Far East Hospitality Trust, to me is a good proxy on the tourism sector in Singapore. So if Singapore economy is doing well and many people are coming, they will do well i.e. yield will improve. Moreover, where can you get such deep discounts for properties? For me, I am looking at diversifying as my portfolio is too heavy on industrial properties in Singapore. This will be the one if I decide to invest in hotels.
I notice the Payout Ratio (from another site ) is 447%.
ReplyDeleteIsnt a payout of more than 100 per cent is a warning sign that the company is paying out more than it earns?