: Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Regal Reit (1881)
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
This REIT quotes at deep discount to NAV while yielding a decent 7%
Why not the multiple layers above the REIT?

Sent from my iPhone using Tapatalk
This reit is a subsidiary company part of the Regal Hotel Group and the Reit was listed at about $2.70 approx 7 years ago. The Reit was given a good rental income by Mr Lo at listing time to justify the higher $2.70 IPO price and paid annual dividends of 17 cents ( 2009)and 19 cents (2010 ) . The rental contract was later adjusted to lower levels as it was claimed the rental terms were not justified by the hotel business. So the Reit declared a lower annual dividend of 12cts ( 2011) and slightly better dividend of 13 cts ( 2012) and 15cts (2013) .

Public shareholder confidence in the Reit was shaken out when the annual dividend fell by 30% in 2011.
Heard of the shareholder doing rights issue ABOVE market price and end up increasing his stake at expense of minority shareholder?

Sent from my iPhone using Tapatalk
Regal Group structure is a tower with many floors. Hahha.

Sent from my iPhone using Tapatalk
Ultimate Holding Co of Regal REIT buys a fleet of planes...
Regal Reit ( 01881.HK ) is 74% owned by Regal |Hotels ( 00078.HK)

Regal Hotels ( 00078.HK) is 58% owned by Paliburg ( 00617.HK)

Paliburg ( 00617.HK is 62% owned by Century City Int Holdings ( 00355.HK )

All companies have registered head office at 68 Yee Wo St. Wanchai ( which is a 23 storey office tower building ).

The Registered Office of Regal Reit is on the 15th Floor and for other 3 companies are on the 11th floor.

So in post 2, opmi should be asking " Why not the multiple layers BELOW the REIT ? "
Total distributions per Unit HK$0.162 HK$0.150 +8.0%
however Profit for the year, before distributions to
Unitholders* 238.5 342.6 -30.4% due to property devaluation.

Quote has gained back the 2.20 area but is still at deep discount to NAV of HK$4.759
This reit paid 15.3 cents dividend in 2007 ( 1st year after IPO) and rising up to 19 cents dividend in 2010. But after a change to rental terms, the dividend fell to 11 cents in 2011 and now paying 16.2 cents dividend for 2014.

The current share price is still below the IPO price in 2007- So don't expect any real progressive dividend growth from Mr Lo.
well in 2009 there has been that little thing called world wide financial crisis and Regal is for sure not the only REIT that went (and stayed) below its IPO price ... think about AIMSAMP or Rickmers or LMIR ... all counters that took a real hit with recap and diluition at hammered prices , something a lot worse than just a cut on rents and related DPU.