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AIMS AMP Capital Industrial REIT: DRP likely a flop.

Sunday, August 18, 2013

In May 2013, I said that "with the DRP offered by AIMS AMP Capital Industrial REIT with regards to 4Q FY2013's distribution, I have decided to accept some DRP units and the balance in cash."

I was able to make some extra money in the last Distribution Reinvestment Plan (DRP).

This time round, however, it is impossible and the DRP is likely to be a big flop for the REIT with its unit price last traded at under $1.50 a piece.

Related post:
AIMS AMP Capital Industrial REIT: Distribution Reinvestment Plan.


Ray said...

Yeah, price is dropping so drastically.
Opt for cash dividends.

AK71 said...

Hi Ray,

The DRP before this was the only time I got some DRP units but even then, it was to gain from arbitrage.

I believe that there are some who might have opted to receive all income distributions in the form of new units. I wonder if they could opt out now.

INVS 2.0 said...

I am always for the income and won't think of this DRP. *paper torn into half and disposed* :)

AK71 said...

Hi INVS 2.0,

I am sure you are sleeping soundly at night. :)

JCK said...

Wonder why the very drastic drop in price? ??

AK71 said...


Your guess is as good as mine. :)

Ray said...

getting too nerve wrecking for me. fully divested. will wait for waters to be calmer before coming on board again. There goes most of my paper gains :)

AK71 said...

Hi Ray,

I am sure you have very good reasons for selling. At least you are still in the money. Anyway, peace of mind is priceless. :)

BP said...

What's the main purpose of the drp? They are going to use this process to fund some stuff? Wonder on the reason this would cause a drastic drop.

Thinking of loading some...

AK71 said...

Hi BP,

Beef up the balance sheet, I guess. I think they are looking into possibly buying some high yielding Australian industrial properties.

Eugene Guan said...

Its so weird to feel both happy and worried at the same time. Happy that AA is getting cheaper so that I can buy more at bargain, worried is there something going on internally that we don't know.

AK71 said...

Hi Eugene,

Well, the REIT has been praised for being very transparent and having top notch corporate governance before, iirc. :)

It has also been mentioned before that the management's interests are rather aligned with those of unit holders. I blogged about it before too.

So, I can only hope to do the right thing, given the circumstances. What else could I do? ;)

Alvis said...

Hi AK,

I am also hoping that i do the right thing :)

AK71 said...

Hi Alvis,

Long time no hear! How are you?

Do the right thing. That is all we can hope to do. Of course, whether it is the right thing or not is hard to tell sometimes until later.

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