- Yield = 5.76%
- Price-to-book Ratio = 0.797
- Assets per unit = $1.463
- Debt per unit = $0.566 (including current liabilities and perpetual securities)
- Gearing = 38.7%
Far East Hospitality Trust has announced an acquisition which by analysts, is a good move because it looks cheap. Moreover, the deal is yield accretive although it is almost entirely debt financed. Let's take a look at the statistics.
With the yield at 5.76%, it is very low. However, it will increase to 5.9% following the acquisition. 5.76% is quite the average compared to other hospitality trusts but 5.9% will be on the high side. Nevertheless, it is very low compared to other REITs. What is good is that we are buying at 20% discount which is fantastic. Others are trading at 10% discount. However, I am not sure whether they will eventually trade at that level.
I am holding on to about 103,000 shares worth $73,000 because of their NAV. Once the price goes higher, I will be more keen to sell.
With the yield at 5.76%, it is very low. However, it will increase to 5.9% following the acquisition. 5.76% is quite the average compared to other hospitality trusts but 5.9% will be on the high side. Nevertheless, it is very low compared to other REITs. What is good is that we are buying at 20% discount which is fantastic. Others are trading at 10% discount. However, I am not sure whether they will eventually trade at that level.
I am holding on to about 103,000 shares worth $73,000 because of their NAV. Once the price goes higher, I will be more keen to sell.
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