At current discount to net assets it actually implies that the cap-rate on their assets has ALREADY expanded to 7% or higher.
For example, if you have an asset that trades at a 50% discount to NTA, and it has a 5% cap rate based on book value, then it actually has a 10% cap rate based on market value (because you are buying them at half price).
Due to this reasoning, I have started to buy in now.
Of course there is nothing to stop the cap rate further expanding to 8% or 9%, but that would be stretching historical limits for a good asset class.
At current discount to net assets it actually implies that the...
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Last
$1.18 |
Change
0.020(1.73%) |
Mkt cap ! $667.7M | |||
| Open | High | Low | Value | Volume |
| $1.17 | $1.18 | $1.17 | $906.2K | 772.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1243 | $1.17 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.18 | 30097 | 5 |
View Market Depth
| Last trade - 16.10pm 07/05/2024 (20 minute delay) ? |
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Last
$1.17 |
Change
0.020 ( 1.00 %) |
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| Open | High | Low | Volume | ||
| $1.18 | $1.18 | $1.17 | 258636 | ||
| Last updated 15.59pm 07/05/2024 ? | |||||
| HCW (ASX) Chart |