- Yield = 6.02%
- Price-to-book Ratio = 0.781
- Assets per unit = $3.589
- Debt per unit = $1.381 (including current liabilities)
- Gearing = 38.5%
Suntec REIT published their results before CNY which has always puzzled me. Let's take a look at the statistics.
Yield has been stable at 6.02% which is still quite ok (but not to my standard) but their price-to-book ratio is at 0.781 which means that they are trading at a 22% discount to their valuation price. This is something which makes it attractive. Gearing is at a healthy 38.5%.
I am puzzled that they are always trading at a discount despite being one of the largest REIT in Singapore and holding on to assets which are located at prime land. Someone has told me before that valuation is quite influenced by the REIT manager but this is the only indicator that we can rely on to decide whether we are buying on a cheap. Of course, there are other business trust which has proven that NAV is not really reliable but here we are talking about properties which is relatively quite stable.
Nevertheless, Suntec REIT's yield is way too low for me and it is very unlikely that I will invest in it. Unless there are some other ways to improve the yield at my end.
Yield has been stable at 6.02% which is still quite ok (but not to my standard) but their price-to-book ratio is at 0.781 which means that they are trading at a 22% discount to their valuation price. This is something which makes it attractive. Gearing is at a healthy 38.5%.
I am puzzled that they are always trading at a discount despite being one of the largest REIT in Singapore and holding on to assets which are located at prime land. Someone has told me before that valuation is quite influenced by the REIT manager but this is the only indicator that we can rely on to decide whether we are buying on a cheap. Of course, there are other business trust which has proven that NAV is not really reliable but here we are talking about properties which is relatively quite stable.
Nevertheless, Suntec REIT's yield is way too low for me and it is very unlikely that I will invest in it. Unless there are some other ways to improve the yield at my end.
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