Analysis of Far East Hospitality Trust - Is the price too high?

Current Price on 26th March 2019 = $0.675

• Yield = 5.93%  
• Price-to-book Ratio = 0.775
• Assets per unit = $1.417
• Debt per unit = $0.546 (including current liabilities and perp securities)
• Gearing = 38.5%
• Secured NAV = $0.871 (129% of trading price)

Far East Hospitality Trust has risen by quite a bit this year at $0.675. I am vested with about 104,000 shares (I took scrip dividend) worth about $70,000. Let's take a look at the statistics.

With a yield of 5.93%, it seems very low now compared even to its peers like CDL H-Trust, OUE Hospitality Trust, Fraser Hospitality Trust etc. But its price-to-book ratio is at 0.775 which means we are buying at a 23% discount to its valuation. It is ranked the best among its peers. Gearing is at 38.5% and because all its debts are unsecured, we have a secured NAV of $0.871 which is 129% of its trading price.

I do find it very strange because it is the lowest yielding hospitality REIT and yet its price is moving up. Frankly speaking, it no longers fits into my criteria of at least 8% yield by a large margin and I have been pondering for a while whether to sell it off. What is holding me back is its price-to-book ratio and its secured NAV. Its secured NAV is the highest among the REITs in SGX.

There are a lot of reports which upgrade its target price to 70 cents and 75 cents which is very high. Probably its stability contributes to its current trading yield but I am not so sure. Looking around to see whether there are better REITs which offer higher yield with similar metrics.