- Yield = 7.50%
- Price-to-book Ratio = 1.00
- Assets per unit = Euro 0.828
- Debt per unit = Euro 0.255 (including current liabilities)
- Gearing = 31.1%
Finally we have a REIT listing in this second half of this year with a European REIT focusing on logistics. Let's take a look at the statistics.
With a yield of 7.5%, it look quite decent but there are other REITs which are local-based and able to deliver higher yield like Cache Logistics Trust, Soilbuild Trust, etc. Moreover, they are selling at market value which is not really attractive because there are other REITs which are trading at a discount. Some of these have moved to become premium REIT so the price may well just hold up. Gearing is at a comfortable 31.1%.
Do note that it is trading in Euros so there is currency risk, and European Central Bank is still printing lots of money so Euros may just continue to fall. While I thought this is decent, the currency risk doesn't help.
I will be taking a backseat on this REIT (I have been doing it for a while actually) and see whether the price hold up.
With a yield of 7.5%, it look quite decent but there are other REITs which are local-based and able to deliver higher yield like Cache Logistics Trust, Soilbuild Trust, etc. Moreover, they are selling at market value which is not really attractive because there are other REITs which are trading at a discount. Some of these have moved to become premium REIT so the price may well just hold up. Gearing is at a comfortable 31.1%.
Do note that it is trading in Euros so there is currency risk, and European Central Bank is still printing lots of money so Euros may just continue to fall. While I thought this is decent, the currency risk doesn't help.
I will be taking a backseat on this REIT (I have been doing it for a while actually) and see whether the price hold up.
Euro has been rising since March, well, the up momentum now is weaker though...
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ReplyDeleteGood post but I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further. Appreciate it!
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