At this point of writing, PRIME is trading at US$0.30.
Its yield is now almost 20%, at US$0.06 ( base on FY2022).
Trading a 0.44x book value, NTA is US$0.75.
Let take a look at a few metrices.
1) Weighted Average Lease Expiry (WALE) is 4.1 years, which provides sufficient time to cushion any volatility in the stock market.
2) Weighted Average Debt Maturity is 2 years. This may raise some concerns here. Out of the US$449 million debt maturity in 2024, US$160 million can be extended to July 2026 ( 2 years extension ), bringing Weighted Average Debt Maturity to 2.7 years. Personally, I am not sure if this provide sufficient buffer time for PRIME to obtain new loan facilities.
3) Average leverage is 42%. This figure is still below the requirements of 50%.
Summary:
All investments come with RISK, some is higher while some is lower.
At a yield of close to 20%, and trading at 0.44x book value, i think the risk is justified.
Comments