In my opinion, better sell first. They will issue new share soon. Usually, company will push up the price so that can have better price to list the new share. Ytl can inject the new hotel in starhill global reit in Singapore as well...
NTA 1.48, rental in Msia stable. Japanese Yen surge 20% and Aussie 10% over last one year plus over night banking rate drop 0.25%. This could be part of the reasons trigger buying. Expecting rental revise in Nov for Msia & Japan Hotel also could be another reason.
On behalf of the Board of Directors of the Manager (“Board”), AmInvestment Bank wishes to announce that the Board had today resolved to fix the issue price of 380,000,000 Placement Units at RM1.06 (“Issue Price”). The placees for the entire 380,000,000 Placement Units are as follows:- (i) 190,000,000 Placement Units to be issued to YTL Corp; and (ii) 190,000,000 Placement Units to be issued to placees identified through the Placement Agents, AmInvestment Bank, Credit Suisse (Singapore) Limited and Maybank Investment Bank Berhad, raising total gross proceeds of RM402.8 million.
The Issue Price represents a discount of approximately 9.25% to the five (5)-day volume weighted average market price of the units in YTL REIT up to and including 30 November 2016, being the last trading day immediately preceding the price fixing date, of RM1.168.
=== Not good for minority shareholders. At least they should have priced it closer to the market price since it is a private placement.
actually placement price not too far from the market price, because nov 30 one dividend went ex, then dec another dividend ex so almost 4c dividend deducted already.
The early dividend pays out to avoid new placement shareholders enjoy the unpay payable distribution. Total early pay out is for 75 days, which means in February there will be another 17 days of distribution to pay again. With current placement of 380m at 1.06. After minus pay out DPU about RM0.04. The NTA will dilute to about 1.322. Current 75 days DPU is about 1.918 sen which means 2nd Quarter cash flow could be 2.35 sen after Nov rental revise up. Assuming 2.35 sen is sustainable, after 380m place in on 15th December and use to pay of loan of 4%. The average DPU will drop to 2.06 sen per quarter. We still have net DPU after withholding tax of around 7.4-7.5 sen yearly if current income is sustainable, which equivalent to 6.7% at 1.10. Reits is long term investment. Those looking for short ride, better avoid this.
This FY will be a progressive significant year for YTL REIT. Besides the agreed rates revision of the hotel properties (under lease agreements), the Mgmt gonna add its recent acquired UK hotels into it. Hence it would be definitely an accretive to its NTA & DPU. For long term, its net dividend yields are far more attractive than traditional FD even bonds.
Compared to the other MREITs, this is the only one with significant forex earning exposure. It is a double edged sword, as it also has a big AUD denominated loan taken when purchasing the Australian hotels. If those hotel revenues are more than sufficient to cover the interest/repayments, great. Otherwise, it's going to get painful as the AUD continues to strengthen against MYR.
For Australia Hotels, the Brisbane performance is dropping. But Sydney and Melbourne out performed with extremely high occupancy. Therefore, A$ appreciation will boost DPU although in P&L shows red.
http://klse.i3investor.com/servlets/cube/kuihmoi.jsp You are right. Not just Merchant banker, the YTL reits management also irresponsible people. Simply offer to public who have Wealthy accounts with merchant banker but not truly long term YTL reit investors. I'm one of the long term YTL reit collecting YTL reit from RM0.735 since 2009 to highest RM1.22 in Nov 2016 try all methods just can't have the change to apply for the private placement. This is not fair to existing long term investors.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 268 views | 1 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11428 views | 10 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
gimeng
171 posts
Posted by gimeng > 2016-09-29 12:42 | Report Abuse
have been contemplating to enter at around 1.11 to 1.13. I guess it might start to get harder now to go in in that range.