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Over the past two weeks, MIIF continues to repurchase units from open market hence decreasing its outstanding units to 1,251,564,154 units. Since the start of the year, MIIF has repurchased 46,239,954 units from open market - a rare feat from a business trust ! Its market capitalization stands at $650.8 million and it needs to pay out $68.84 million worth of distributions annually to maintain its forecast DPU of 5.5 SG cents. Asset Value Investors Ltd (substantial shareholder) raised its stake from 5.52% to 6.02% in August 2011. The key question as always is whether MIIF is able to sustain such levels of distributions considering i) Its assets are highly leveraged at 50% gearing (based on Debt/EV) and has a loan amortization schedule ii) Its HNE toll-road concession expires in 15 years time iii) its substantial $137 million cash hoard.
(Not Vested)
(Not Vested)
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