Below are the key stats for two Japanese property trusts as at 30 June 2008. Both are listed on the ASX. One has seen its share price fall 93% in the two years since, the other a comparatively mild 41%. You tell me which is which (no cheating). Tomorrow I’ll reveal which stocks they are, and why investors ended up with such different outcomes.
Key stats: | Trust 1 | Trust 2 |
Total assets 30 June 2008 ($m) | 1,631 | 921 |
Net debt ($m) | 823 | 478 |
Gearing | 50.40% | 51.90% |
NTA ($ per share) | 1.39 | 0.9 |
Interest cover (operating income/interest) | 4.2 | 3.8 |
Occupancy rate at 30 June 08 | 98.00% | 97.60% |
Occupancy rate now | 93.00% | 95.60% |
Change in prop. values since 30 June 08 | -26.30% | -23.50% |