Based on their P/B ratio , I would invesr in Manu life reit and Prime Us Reit , cos they are at 20% of their BV . Amazing. just sell and liquidate the entire company for all I care and give me the proceeds. No big deal. Sell the whole reit at 50% discount of book value , and return me the extra 25% hahaha
Between the two I would still prefer Prime US Reit. However being at a huge discount doesn’t mean the company would just liquidate the entire company to give you the proceeds. There are cases where sponsors buyback their reits at ridiculous cheap share prices and that would be an undesirable as you would only get based on what share price they offer.
Yes MANU is definitely riskier as their leverage ratio constantly hitting 50%. Apparently there is a funny rule that if they hit 50% not by “their own actions” but due to other factors like drop in valuation, it is not considered hitting 50%.
@@InvestingWithBen this is a ridiculous rule becos most reits in USA or Europe , have leverage ratios higher than 50% . This rule is like fighting with one arm tied behind the back.
But on the bright side, it helps to ensure that Reits do not over leverage and causing them to be unable to pay for their debt interest during rate hikes. The higher the leverage ratio, the more impact the rate hikes will be on their interest payment. If their Interest coverage ratio is too low, then they cannot pay dividends.
Thanks for the feedback! Really appreciate it. Yes but with its healthy debt levels and being in a data center sector, it might be in a better position as compared to Manulife US Reit. It really might go both ways where the management can swiftly get new tenants to cover the 20% or it will take a long time which would give lower returns to shareholders. So thats the risk to take note when investing👍
@@crispusallen3865 Hi Allen. You can watch my videos on my opinions on Keppel Pacific Oak US Reit(KORE) as well. I feel that Prime US Reit is more to KORE side rather than Manulife US Reit. Currently, market sentiment for overseas Reits is VERY BAD therefore the crash in share prices. In my opinion, Prime US Reit seem to be doing okay and if you see the disclosure, Keppel Capital is actually increasing their holdings in Prime US Reit. Of course, it is important to understand what you are investing in and what the managements were saying from their AGM(This is very important in seeing the confidence in the management) Sometimes share price might deviate from fundamentals of the company but with patience and knowledge of the company, you will feel more sound. I invest in overseas companies as well and with such high volatility, doing research to invest in the right companies allows me to confidently buy them in the low prices.
With Prime going at under 20% of its book value.... The REIT can sell off ALL their buildings even at 50% discount from valuations and still give you a almost 100% profit on your current share price which is 17ct a share. book value is 75ct a share. Mad. Load up the truck !
thank you for sharing , appreciate very much
Welcome!
Based on their P/B ratio , I would invesr in Manu life reit and Prime Us Reit , cos they are at 20% of their BV . Amazing. just sell and liquidate the entire company for all I care and give me the proceeds. No big deal. Sell the whole reit at 50% discount of book value , and return me the extra 25% hahaha
Actually , correction, I WLD buy Prime US, not Manu. MANU is ABIT too messy for my liking.
Between the two I would still prefer Prime US Reit. However being at a huge discount doesn’t mean the company would just liquidate the entire company to give you the proceeds.
There are cases where sponsors buyback their reits at ridiculous cheap share prices and that would be an undesirable as you would only get based on what share price they offer.
Yes MANU is definitely riskier as their leverage ratio constantly hitting 50%. Apparently there is a funny rule that if they hit 50% not by “their own actions” but due to other factors like drop in valuation, it is not considered hitting 50%.
@@InvestingWithBen this is a ridiculous rule becos most reits in USA or Europe , have leverage ratios higher than 50% . This rule is like fighting with one arm tied behind the back.
But on the bright side, it helps to ensure that Reits do not over leverage and causing them to be unable to pay for their debt interest during rate hikes.
The higher the leverage ratio, the more impact the rate hikes will be on their interest payment. If their Interest coverage ratio is too low, then they cannot pay dividends.
Very good thanks. ,,Over 20% is huge - Digital Core to also collapse?
Thanks for the feedback! Really appreciate it.
Yes but with its healthy debt levels and being in a data center sector, it might be in a better position as compared to Manulife US Reit.
It really might go both ways where the management can swiftly get new tenants to cover the 20% or it will take a long time which would give lower returns to shareholders. So thats the risk to take note when investing👍
@@InvestingWithBen Hey bro, I'm in a quandary bagholding Prime reits. Possible to share your opinion on it?
@@crispusallen3865 Hi Allen. You can watch my videos on my opinions on Keppel Pacific Oak US Reit(KORE) as well.
I feel that Prime US Reit is more to KORE side rather than Manulife US Reit. Currently, market sentiment for overseas Reits is VERY BAD therefore the crash in share prices.
In my opinion, Prime US Reit seem to be doing okay and if you see the disclosure, Keppel Capital is actually increasing their holdings in Prime US Reit. Of course, it is important to understand what you are investing in and what the managements were saying from their AGM(This is very important in seeing the confidence in the management)
Sometimes share price might deviate from fundamentals of the company but with patience and knowledge of the company, you will feel more sound.
I invest in overseas companies as well and with such high volatility, doing research to invest in the right companies allows me to confidently buy them in the low prices.
With Prime going at under 20% of its book value.... The REIT can sell off ALL their buildings even at 50% discount from valuations and still give you a almost 100% profit on your current share price which is 17ct a share. book value is 75ct a share. Mad. Load up the truck !
@@minutemaniii7062 I'm holding tight but what's currently happening to Manulife Reits did shook me ngl haha