3311, Ascott announces 482 million Right issue at 0.919. 29 Rights for every 100 units. The fund raised is for Ascott Orchard Singapore , AOS (381m) and balance to purchase 2 properties in Germany. The expected return (Ebitda) for AOS is around 4.5% and for German property is 5.4-5.6%. The expected reduce in income is more than the discount given (Right issue price of 0.919). Therefore, forecast DPU for 2017 may reduce to S$0.072 and after transaction complete S$0.0743 which is lower than S$0.0827 now.
To take note here is, The right issue only for eligible CDP account holders, which mean you must have a Singapore address where they can inform you by mail in 3 days. That means either you have personal account in Spore with Spore address or with Nominees account in Singapore (if you but Ascott from Securities firm in Msia then you should have the right issue). So, check with you dealer, whether you have right issue for Ascott. Here are the important dates to remember. 17th March is the first trading day of the right , 27th March is the last day. 31st March 5pm is the last date for acceptance Right issue application. if your acccount is with Msian securities company. Decide early to subscribe. or even can buy more cause the DPU still yeilds 7% if the price is 1.06 after Ex. Most of Msia Reits now are less than 6% and majority are less than 5%. One plus point for this exercise is , the fix income has increase from 42% to 46%. the German and AOS are also good asssts which will appreciate.
If you are into Spore Reits, I mentioned earlier, Sabana Reit is hugely under value. I bought in January at S$0.35, today close at S$0.46. DPU per quarter S$0.0088, which will increase to around S$0.01 around 3rd quarter. current NTA S$0.66
Temasek is the indirect major owner of Ascott and the major owner is 100% own subsidiary of Temasek. Ascott was voted best reit in Asia in 2015. So, nothing bad news but just rights issue will dilute DPU for now.
DroidnPlay, I had sold 30% Sabana at 0.46 on late March to switch to Acott. I still hold the remaining 70%. The EGM on 28th April to throw out the manager has a very slim chance. Even if the EGM successfully approve the 1st Resolution. Spore authority MAS will make sure the propose reit managers are qualify and good, otherwise will not allow to change the manager. In worst scenario, the reit will have to liquidate and all properties divested. With NTA of 0.66 and 20% discount, the net proceed still have around 0.528. If the manager change, the current tenants will still stay and the rental is approxiamately 0.352 per year. I think Still not to bad . So. i don't intend to sell off but instead will buy more if pricing keep dropping.
Wong Kin Howe, can't comment on Cambridge Industrial Trust as I didn't follow ... On Last Sabana EGM, more than 2/3 units holders vote against the resolutions. This is good news and I start to buy back Sabana at 0.45-0.455.
I am thinking of getting share margin financing to invest into this reit instead of real property investment. What is the advisable financing margin? Although can approve up to 75%, I doubt I should push to the max.
offshore, if you are YTL reit or MQreit, financing of 45% are relatively safe (but bare in mind the calculation is base on 90%), as i had do it for past 7 years. Wheresas, if you are going for more fluctuate reits like shopping, offices or Sporean Reits, 30% are at safety zone.
The 'loss' is an accounting issue, due to currency fluctuations between MYR-AUD, brought about by the AUD-denominated term loan.
Ringgit is starting to strengthen now, so it should correct itself in the next few quarters.
Add up the quarterly dividends since July 2016, and that's a cool 8.3 sen per share (7.47 sen after WHT, at RM1.17 per share is equivalent to 6.38% p.a; better than EPF).
Out of all the Malaysian REITs, this is probably the only one giving a decent overseas exposure - the rest are all dependent on the domestic economy.
The losses are the unrealized foreign exchange losses as stated in the financial report. The actual pretax profit is there. That's why it can pay dividends each quarter. Refer to the fin report.
(pg 8) As the Proposed Acquisition will be funded by borrowings, YTL REIT’s gearing ratio is expected to increase from 36.5% to 42.3% based on the proforma total asset value and borrowings of YTL REIT as at 31 March 2017...
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kuihmoi
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Posted by kuihmoi > 2017-03-08 22:02 | Report Abuse
ascott reit plan a rights issue