- Yield = 8.30%
- Price-to-book Ratio = 0.874
- Assets per unit = $2.337
- Debt per unit = $0.792 (including current liabilities)
- Gearing = 33.9%
Yield is at 8.30% which is quite healthy, higher than the big boys like Ascendas REIT but lower than smaller players like Sabana and Viva Industrial Trust. Price-to-book ratio is at 0.874 which means we are buying at about 12.5% discount. It is a small Christmas sale. Gearing is at a safe 33.9%.
I have always view this as a growth REIT because they have a lot of properties which can be redeveloped to maximise their plot ratio. You can see that every now and then, there will be at least one property undergoing redevelopment which helps to enhance the value of our investments. In short, there is a lot of opportunities for growth rather than to compete for acquisition and it is almost a sure-win bet everytime they redevelop. Thus, even if the yield is slightly lower, it is still worth it to hold.
I do have 11,600 shares which is placed in my CPF investment account. Earlier I have sold all of my cash holdings and switch it to another counter (Viva Industrial Trust). I will hold on to what I have in my CPF investment account to continue to enjoy the growth.
** A reader pointed out that it is called Organic growth instead of inorganic growth. My bad and thanks to my reader :-)***
Is organic growth not inorganic growth. Organic growth means grow from within. Inorganic growth means grow from outside ie acquisition.ReplyDelete
Even if there are organic growths, the properties might be in short term lease (for Singapore JTC land) and the development costs can be huge. So at the end it is one pocket in (dividend) and one pocket out (more funding). This is a game for reit.ReplyDelete