Price on 10th July 2018 = $0.625
- Yield = 6.02%
- Price-to-book Ratio = 0.718
- Assets per unit = $1.417
- Debt per unit = $0.546 (including current liabilities and perpetual securities)
- Gearing = 38.5%
Far East Hospitality Trust has dropped quite a lot recently. To be frank, I was queueing to sell at $0.655 last month but did not make it. Wasn’t reactive enough to sell it quicker at a lower price so I am still holding on to about 103,000 shares. Before I make the next move, let’s take a look at the statistics.
With a 6.02% yield, it is not attractive at all. This is probably my lowest yielding investments in my portfolio currently. What makes it attractive is its price-to-book ratio which is at 0.718. It means we are buying at almost a 30% discount. This is quite rare considering that all their properties are based in Singapore. Gearing is at a healthy 38.5%.
It has fallen from a high of $0.775 in the beginning of the year and I really regret not selling earlier. I was persuaded by the project that they are embarking on, the recent acquisition that they had which led me to believe that their distributions will be on the increase. However, I don’t think I am right in this sense and the wait is longer than I expected.
Having said that, $0.625 pricing is already quite low and its price-to-book ratio is already very low as well. I am continuing to hold on to this, and hold on to my previous belief as well, until a better opportunity arrives.
