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Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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preferential issue of 2 for 25 at $1.05 to $1.07 per share...
hopefully can get excess to round up to 1 lot
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My view is that cost of borrowings would be a pertinent factor in determining if they have excess cash flow to pay out to unit-holders. 2.2% is probably close to historic lows in terms of financing with banks, and we are talking about a medium-term tenure. Shorter tenures can command rates of about 1.7% to 2%, but you would need to roll-over more frequently.
So an important question is when is all this debt due? And also, how often do they have to roll-over?
Just my 2-cents.
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28-07-2011, 09:27 PM
(This post was last modified: 28-07-2011, 09:27 PM by Nick.)
MIT gearing will exceed 41% while its yield would edge upwards to 6.9%. I would say A-REIT offers more value at 6.3% yield and 29% gearing ? The latter has plenty of development opportunities and a longer track record. Development projects tend to be the best way to reward unit-holders since the cost on yield is higher and the gain in property valuation will give a timely boost to NAV and a reduction in gearing. Would value your views ! Please correct any mistakes in the figures.
(Not Vested in any industrial REIT)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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A-REIT starting or started to invest oversea especially in China. MIT properties are now all in Singapore. When come to REITS , so far local properties are safer and may gives better return in the long run. i prefer local property REITS. Yesterday, closing price shot up to $1.20 after confirmation of rights issue. Time to take small profit or to hold & subscribe for rights issue
Vested in BOTH.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(29-07-2011, 07:03 AM)Temperament Wrote: A-REIT starting or started to invest oversea especially in China. MIT properties are now all in Singapore. When come to REITS , so far local properties are safer and may gives better return in the long run. i prefer local property REITS. Yesterday, closing price shot up to $1.20 after confirmation of rights issue. Time to take small profit or to hold & subscribe for rights issue
Vested in BOTH.
China investment represents a very small 3-4% of the total assets. Ultimately, no REIT listed ever faced an operating crisis - poor occupancy, acts of terrorism/war, lack of utilities etc. The closest would be Saizen REIT during the nuclear crisis. But we had a number of REITs who faced existential risk during the credit crunch when bankers were unwilling to roll over the loans of highly geared reits. The industrial reit sector was especially hard hit...Just take a look at the number of S-REITs compelled to turn to rights issue in late 2008/early 2009. In short, gearing is perhaps the most risky aspect of a REIT.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.