Analysis of Asian Pay Television Trust

Proposed Maximum price = $1

• Current Yield = 7.26%  
• Price-to-book Ratio = 1.097
• Assets per unit = $1.685
• Debt per unit = $0.773 (including current liabilities)
• Gearing = 45.9%

There is going to be a new listing of an infrastructure assets in the name of Asian Pay Television Trust which is a hive-off from MIIF. The yield is at an attractive rate of 7.26% which is quite high if you are comparing with REITs. However, its price-to-book ratio is at 1.097 which means we are paying about 10% more for this asset.

I believe that Infrastructure Assets have a faster depreciation than REITs since there is wear and tear plus advancement of technology. Thus, I am not too sure whether it can sustain the assets per unit of $1.685. Its gearing is also quite high at 45.9% which is quite dangerous.

I think I will need more information and knowledge on this kind of investments before I decide. Nevertheless, 7.26% yield to me is not good enough considering that there are REITs with similar yield.

Analysis of Global Investment Limited (Non-REIT)

Current Price = $0.16

• Current Yield = 9.38%  
• Price-to-book Ratio = 0.708
• Assets per unit = $0.255
• Debt per unit = $0.026 (including current liabilities)
• Gearing = 10.2%
• Secured NAV = $0.169

Global Investment Limited has announced its results which are quite favourable except for their proposed rights issue. At current price, it is already 9.26% with a favourable price-to-book ratio. Its secured NAV (according to my estimation) is also at $0.169 which is higher than its trading price. 

This pricing is a response to the rights issue where it drops from $0.17. I just thought that it is quite unnecessary for raise more funds at this juncture because it will dilute the NAV and secured NAV as well. Moreover, they said that they will be in a position to seize opportunities that comes along the way does not really appeal me. I don't know when it will happen. If there is a delay, our dividends might be affected.

Just a quick data on how it looks like after rights issue. Price will be $0.155

• Current Yield = 9.67%  
• Price-to-book Ratio = 0.767
• Assets per unit = $0.223
• Debt per unit = $0.018 (including current liabilities)
• Gearing = 8.3%
• Secured NAV = $0.161

Nevertheless, it may seem to be an opportunity to buy on weakness since its trading price is below secured NAV. I am heavily exposed to this counter already (having 157,000 shares) so I will just look forward to securing its rights and apply for excess. I look at it in totality and it still seems a good deal.

Analysis of Croesus Retail Trust

IPO Price = $0.93

• Current Yield = 7.96%  
• Price-to-book Ratio = 1.053
• Assets per unit = $1.683
• Debt per unit = $0.800 (including current liabilities)
• Gearing = 47.5%

Croesus Retail Trust has launched its IPO at a price of $0.93. I have to admit that it is very attractive. Its yield is 7.96% which is very high according to today's standards. The closest one which we are having is Ascendas Hospitality Trust at 7.41%.

However, its price-to-book ratio is at 1.053 which is a premium. Although they are acquiring the assets at a discount, its balance sheet still shows a premium so I am not very sure why it is the case. Moreover, its gearing is quite high as well at 47.5%.

Looking at the current situation where most of the REITs are trading at a yield of about 5% and at a premium, I will definitely grab this chance and apply for as many lots as possible, hoping to get some. Moreover, once it is listed, I will analyze quickly and decide whether to get more because of its high yield.

Analysis of Sabana REIT

Current Price on 19th Apr 2013 = $1.37

• Current Yield = 7.04%  
• Price-to-book Ratio = 1.262
• Assets per unit = $1.794
• Debt per unit = $0.708 (including current liabilities)
• Gearing = 39.5%

Sabana REIT has published its results which pushes its price up to $1.37 which is fantastic. Despite being at high price, its yield is still at 7.04% which is good. But its price-to-book ratio is also very high at 1.262.

Comparing to its peers, AIMSAMP REIT seems a better deal as its yield is very close and it has a better price-to-book ratio. Nevertheless this is still a good deal for its yield.

I remember missing this when I tried to buy at $1.20. Somehow I have forgotten about it and let it slip to this price. Again I regretted it. Well, I will need to be more focused and do my analysis more regularly. (Have been busy at work). I will be thinking about this and weigh it against AIMSAMP REIT, Rickmers, Global Investment Limited, and Religare to see which one is the best to enter.

Lam Soon Industrial Building re-launched for collective sale | Singapore Business Review

Lam Soon Industrial Building re-launched for collective sale | Singapore Business Review:

'via Blog this'

It is interesting because this is about 70% owned by Cambridge Industrial Trust but there is no news from them about the collective sale of it yet.

I felt that this is important because it means that we can realize the value of this property which in the earlier exercise, is aiming to fetch 3 times the price due to the rezoning.

Will be waiting for more updated news on this.

Rickmers Maritime: Will discounted rights issue set trust on new course?

Rickmers Maritime: Will discounted rights issue set trust on new course?:

'via Blog this'

Just another article for your viewing. Enjoy.

Analysis of Cambridge Industrial REIT

Current Price on 19th Apr 2013 = $0.85

• Current Yield = 5.81%  
• Price-to-book Ratio = 1.287
• Assets per unit = $1.047
• Debt per unit = $0.386 (including current liabilities)
• Gearing = 36.9%
• Secured NAV = $0.16 (18%)

Cambridge Industrial Trust has reported its results which is again an improvement from the previous results. It has pushed the price up to a high of $0.85. At this price, the current yield is 5.81% which is quite low. Its price-to-book ratio is 1.287 which is high. In all indicators, it has lost its attractiveness. Sabana REIT has better indicators i.e. higher yield and lower price-to-book ratio.

Nevertheless, I suspect that the price-to-book ratio can be better. There is an incident whereby CIT tried to sell one of their assets at 3 times their book value (which did not work out). I kept the analysis in my excel sheet and continued to track the data assuming that it has happened. The indicators seems better with price-to-book ratio dropping to near 1.0 level and Secured NAV at about 80%. These are some forward-looking scenarios which I don't normally rely on.

Well, if I continue to stick on to my investment philosophy, there is really nothing I can buy and I am still trying to tweak my thinking and analysis. But a lot of opportunities has passed by which I regretted. Need to learn to look forward.