Dear readers, let us take a look at four Singapore Reits and Trusts which are undervalued (having a Price-to-Book ratio of below 1) and having a high dividend yield of above 7%.
These Singapore Reits and Trusts are:
Mapletree NAC Trust which has a Price-to-Book ratio of 0.91 and a dividend yield of 7.50%.
Ascott Trust which has a Price-to-Book ratio of 0.77 and a dividend yield of 7.02%.
OUE Commercial Reit which has a Price-to-Book ratio of 0.62 and a dividend yield of 7.33%.
CapitaRetail China Trust which has a Price-to-Book ratio of 0.86 and a dividend yield of 7.86%.
Of the four Reits and Trusts outlined above, which Reit of Trust has the highest yield normalized based on a fully-valued (P/B) basis? To find out, we will just need to divide the dividend yield of the Reit/Trust with the Price-to-Book ratio of the Reit/Trust.
In this case, we have
Mapletree NAC Trust: 8.24%
Ascott Trust:9.12%
OUE Commercial Reit:11.8%
CapitaRetail China Trust : 9.14%
Hence, as we could see from the above, OUE Commercial Trust stood out amongst the four Reits and Trusts with the highest normalized dividend yield at 11.8%. At the current trading price of 40 cents per share, OUE Commercia Trust is about 43% above its 52-week low of $0.28 reached in March 2020.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!