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Anonymous

06 Sep 2019

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Why do some REITs trade at such a big discount to NAV?

For example, Ascott REIT is trading at a 0.75 PB at the moment. What is the logic behind that?

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Gabriel Tham

05 Sep 2019

Tag Team Member at Kenichi Tag Team

REITs can trade below PB for a number of reasons such as cyclical industry, poor management, bad future outlook, economic conditions etc.

Ascott is part of the hospitality industry. Perhaps, the tourism industry is experiencing a downturn. Generally, the hospitality industry is a cyclical industry because there are periods of high tourism and low tourism numbers.

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