- Yield = 9.16%
- Price-to-book Ratio = 1.014
- Assets per unit = $1.478
- Debt per unit = $0.601 (including current liabilities)
- Gearing = 40.6%
With a yield of 9.16%, it is the one with highest yield among the industrial REIT, beating Viva Industrial Trust by a whisker. The rest are all below 9%. However, a strange thing is that its price-to-book ratio is 1.014 which means we are buying at a slight premium. This is unusual because most of the REITs are trading at a discount. Gearing is at 40.6% which is managable but not very safe.
I am shifting to put more weight to price-to-book ratio which helps me to manage my portfolio risk which at this point is more important. Thus, I won't enter if it is trading at a premium.
If the Assets per unit = $1.478 and the Current Price on 25th Apr 2015 = $0.89
Price to Book should be $1.478 divided by $0.89 = 87.7% or have I miss understood it all together?
Price to Book Ratio is calculated by
Current Price / (Assets-Liabilities)
Got it. Your Assets per unit include liabilities and not Net Assets.ReplyDelete