Asian Pay TV Trust: A Dividend Bagger
By Investmoolah  •  May 20, 2024

Similar to the US Office REITs, Asian Pay TV Trust (APTT) is suffering from a period of high interest and high leverage (but as it is not a REIT, it is not constrained by the 50% leverage limit, so not force selling is happening but has to pay corporate taxes).

The trust has a disastrously high debt load to equivalent of SGD$1.22 billion or 58% debt ratio. For now the trust is first using its cashflow to pay down its SGD debt which has a higher interest rate

Cashflow Generation Ability

APTT is in the Television and Broadband industry within North and Central Taiwan. It is in a highly regulated industry where new entrants find it difficult to enter unless Taiwan issues them the license. 

No doubt it has a utility-like trait but in recent times, APTT's TV customer number has been falling. And with that,

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By Investmoolah
A total otaku who loves anime, investing and the occasional K-drama. My financial journey begun at the age of 22 and has revolved around the concepts of "Working Hard", "Saving Well" and "Investing Wisely". Through my journey, I have realized that financial literacy is something we have learnt little during our school days but is one of the most useful and relevant skill that we have to be equipped to take on the real world. Concepts such as compounding and "common sense investing" are skills that will place us ahead of the race to retirement ...

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