Advertisement
Anonymous
2
Discussion (2)
Learn how to style your text
Victor Chng
21 Feb 2019
Co-Founder at Fifth Person Pte Ltd
Reply
Save
Sasseur REIT indeed beat forecasts for FY18 by 28.1%.
A few key numbers to consider is its NAV increased by 12.9% to $0.9 from the current share price of $0.73 and its gearing ratio decreased from 36% to 29%. It's easy to be attracted to the rising NAV but if we look closely, this increase in valuation comes from their one mall which contributes 70% of NPI (over-contribution of the ChongQing Mall). This could possible explain why its trading below its book value. On this note, the main risk of investing in Sasseur REIT is the trustworthiness of accounting practices by a chinese company. If I were to invest in, I would demand a higher risk premium since cashflow depends heavily on one asset.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
Hi,
To guage whether the company is good to purchase is not by how they exceed IPO forecast but rather the fundamental of the company and the valuation you are paying.
Here are some of the questions you may want to ask yourself: