This REIT delivered results that are inline. I favor Cache more than Aims AMP and Sabana due to its higher yield yet lower gearing. (Compare against other REITs
here)
Cache
Assets: 788 mil
Cash: 7.6 mil
Debts: 203 mil
Debt/Asset: 25.7%
Qtr Net Income: 10.6 mil
Qtr Net Operating Cash flow: 19.4 mil
Qtr Capex on existing properties: 5 mil
Qtr Free Cash Flow: 14.4 mil
Qtr Interest Expense paid: 1.5 mil
Qtr Distribution to share holders: 12 mil
EV/EBITDA: 18 times
PTB: 1 time
I am very comfortable with paying 95 cents ( current share price ). Cache is probably the REIT that is at fair value.
- A lot of REITs do not have much capital expenditure done on their properties. Seems like it is more asset acquisition rather than asset enhancements.
- Valuation is fair. For this price I pay for an ...
...