- Yield = 8.53%
- Price-to-book Ratio = 0.966
- Assets per unit = $1.26
- Debt per unit = $0.556 (including current liabilities)
- Gearing = 44.1%
Ascendas Hospitality Trust just announced that they are not selling the assets which lead to a 10% drop in their share pricing. It is a surprise to me as to all shareholders as the opening price the following day does not allow any reaction time of existing shareholders. So now what? Let's take a look at the statistics.
With a yield of 8.53% now, their yield is one of the best among the Hospitality Trust, comparable to OUE Hospitality Trust and Frasers Hospitality Trust. Their price-to-book ratio is also at at 0.807 which is dependent on the latest valuation (Sorry guys, I did not realize that there is an independent valuation in an earlier announcement. Updated as of 7.45pm) which means we are buying at a discount of 20%. Probably those buyers are unwilling to pay at this price which resulted in the collapse of the potential deal. Gearing is quite high at 44.1%.
Moving forward, we can't just sell it just because of a negative news. Have to evaluate the fundamentals and theirs still seems good to hold at current price. Just that for those like myself who bought at a higher price, we are sitting at a paper loss which I am not overly concerned at this point because our mindset in investment is that we are buying a business, not a stock and we should believe in the business before we invest in it. So, for my 14,000 shares, I will hold on to it and enjoy the dividends.
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