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HNE
From what I understand, HNE is repaying its debts annually with a balloon amortization profile stepping up after 2013 based on slide 28 of the FY 2010 Presentation Slides. I doubt they will be able to maintain their $20 million distribution post 2013 and will most likely divert the bulk of the cash-flow towards debt repayment. I doubt this will be a profitable investment UNLESS traffic volume increases. There is nothing wrong with toll road investing but cash-flow from depreciation should be conserved for asset replenishment. In MIIF case, they used too much gearing to acquire it. The opposite is true for another one of their concession investment - CXP - it is not self liquidating as cash is being retained at asset level for debt repayment and eventually asset replenishment (buying new port, extending lease etc). Pan United is majority owner here so I don't think it wants any NAV destroying capital structure in place.
KGT
A listed "green" infrastructure business trust with potential for long-term capital growth
Despite having a zero debt structure with local assets, I avoided it as it was a classic self liquidating trust that fashioned itself as a growth player. This contradiction will definitely cause problems in the future. KGT assets concession expires between 2024 to 2034 after which the cash-flow vanishes and the NAV steadily shrinks to 0. I wonder how can such a model promise capital growth ! If the Management openly admitted it was self liquidating and was going to be run as such, I don't mind looking at it. The DPU yield will be misleading here since part of it consist a return of your own capital.
K-REIT Asia
I read a blog ( http://atans1.wordpress.com/2011/11/24/h...ked-group/ )that said that as long as you have 5 ppl requesting for a poll, it has to be done ? Is this true ? And if so, why didn't the rest of the minority shareholders back you up after complaining so much to the Board lol.
(Not vested in KREIT, KGT, MIIF)
From what I understand, HNE is repaying its debts annually with a balloon amortization profile stepping up after 2013 based on slide 28 of the FY 2010 Presentation Slides. I doubt they will be able to maintain their $20 million distribution post 2013 and will most likely divert the bulk of the cash-flow towards debt repayment. I doubt this will be a profitable investment UNLESS traffic volume increases. There is nothing wrong with toll road investing but cash-flow from depreciation should be conserved for asset replenishment. In MIIF case, they used too much gearing to acquire it. The opposite is true for another one of their concession investment - CXP - it is not self liquidating as cash is being retained at asset level for debt repayment and eventually asset replenishment (buying new port, extending lease etc). Pan United is majority owner here so I don't think it wants any NAV destroying capital structure in place.
KGT
A listed "green" infrastructure business trust with potential for long-term capital growth
Despite having a zero debt structure with local assets, I avoided it as it was a classic self liquidating trust that fashioned itself as a growth player. This contradiction will definitely cause problems in the future. KGT assets concession expires between 2024 to 2034 after which the cash-flow vanishes and the NAV steadily shrinks to 0. I wonder how can such a model promise capital growth ! If the Management openly admitted it was self liquidating and was going to be run as such, I don't mind looking at it. The DPU yield will be misleading here since part of it consist a return of your own capital.
K-REIT Asia
I read a blog ( http://atans1.wordpress.com/2011/11/24/h...ked-group/ )that said that as long as you have 5 ppl requesting for a poll, it has to be done ? Is this true ? And if so, why didn't the rest of the minority shareholders back you up after complaining so much to the Board lol.
(Not vested in KREIT, KGT, MIIF)
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.